MINTEL Fashion Accessories Report
Individual Case Study Analysis
Prepare a case study analysis relating to marketing problems that are being faced by businesses. The word count is 1000 words.
Background
MINTEL Fashion Accessories report- UK January 2018
In 2016 and Q1 2017, luxury brands have delivery strong results due to increase in tourism in UK due to weak sterling following the EU referendum. Burberry in UK have growth with double digit sales in the six months up to 30 September,2017, but reported a slowdown in Q2 due to reduction in spend as a result of annualization of Sterling's weakness. Company revenue has declined with 10% to up to 2.8 billion in year ended 31 marches 2017 due to changing condition in US and Hong Kong. UK has driven strong performance of EMEIA (Europe, Middle East and Africa) and acceleration in sales in China.
Mulberry saw an increase in UK turnover by 8.6% for year ended 31 marches 2017 due to increase in tourism spend in London, global revenue growth for six month ended 30 September 2017 was flat. UK retail sales were also flat for the period and comprise of approximately 60% of total group sales, the results are underwhelming and show the brand to do more to boost its domestic market. International sales performed better and now focusing on expanding markets which includes China, Hong Kong and Japan where consumers are engaged more in Luxury purchases.
Designing brand positioning
Burberry, accessories represents 37% of total group revenue with sales increasing with 10% during first half of 2017. Handbags and small leather bags are performing better. Full prices sales for bags increased driven by new launches such as Bridle and Buckle bags for year ended 31 March, 2017.The bags category are seen as a central focus of growth in few years for Burberry. As part of new strategy of newly appointed CEO Marco Gobbets, Burberry will move to position in the luxury sector by extending its price architecture and scaling back sales to lower end retailer and wholesalers. It also focusses on creating new luxury leather goods and accessories to attract consumers.
Burberry strategy to move the brand upscale echoes similar move by other brands such as Mulberry, LVMH's Celine and Givenchy in which Coach acts as a competitor in US market. Mulberry is attempting to put itself at higher end of luxury market but need to rethink due to out priced many of its customers and struggle to compete against existing brands. Burberry cannot make the same mistakes and lose the younger buyers which are important for luxury brands. Consumer research of designers Fashion, UK, November, 2017 shows 16-24s are most active luxury shoppers and tend to buy more accessible entry level products.
Luxury brands like Michael Kors, Prada and Louis Vuitton have reduced number of new handbag designs. Gucci sales have increased due to renewed brand appeal under Alessandro Michele, who has succeeded in attracting young costumers. Company have reworked to offer older styles in all categories replaced by new aesthetic. It does not provide any discount and offerings in store since Q4 2016. Leather goods sales account for 54% and benefited by new reworked handbag styles.
Specialists and their retail offering
Monsoon Accessorize is looking to add new market channels and after opening concessions in Debenhams it is looking to team with different stores and started it online trading through Amazon. To establish a separate brand identity For Accessorize, it is opening new stores with new design. Flagship Accessorize store at Westfield London in White City, opened in 2016, Features digital panels that stream content from its Instagram sites and hanging LED rods that changes colours depending on textures and colours used in season's collections. Customers are able to choose store's playlist and own trend edits on Accessorize app, which is then displayed through the app, personalizing their shopping experiences.
Digital activity
Burberry is focusing more on increasing online orders from its stores which eases customers experiences. It will revamp its online content to appeal more luxury consumers through mobile application launched in October 2017. It allows customers to use digital illustrations on their pictures and export them to social media and share them.
Task
Answer the following questions-
- The article shows in Burberry context to grow its marketplace. Discuss the importance of positioning and repositioning for marketers. What are the suggestions for performance of business if such move is successful. (40%).
- In context to Burberry, determine means of positioning map, how positioning of brand will change as result of this process. In presenting map, identify and locate the following brands: Gucci and Primark (30%).
- Present two methods which brands Burberry should use to achieve repositioning.
UPTO50%
Avail The Benefit Today!
To View this & another 50000+ free
