Specification and Preference of the Luxury Commodities Market

What drives their like for Burberry Products?

Burberry Group PLC is a renowned fashion brand Company. It started in 1856 and has its headquarters in London. Currently it has many branches in other countries, for example, Hon Kong, USA and China.

Burberry began as a small operational company and developed into multiple operations in the domestic market (Moore and Grete 411).  In the early 2000, the Company was lowly rated due to the bad public image it suffered. It was associated with a group of whites, connected to lawlessness, impunity and hooliganism. Therefore, people developed a phobia for the Company’s brands as some even went to an extent of dismissing young people who used their brands. These discriminations led to the down of the status of the labels as well as its brand (Moore and Grete 418). As a result, its market share and profits declined.

Despite the downturn, the Company took a U-turn when Angela Ahrendts took over as the chairperson of the organization. She introduced many changes that revamped the Company, and since then, the Company has been a leading fashion house in the world (Moore and Grete 412-420). There are various factors that have seen this company grow to this level. Responding to market needs, availability of the market and good specifications are among the factors that lead to the growth of this Company (Vollmer and Karen 36).

There are several reasons why Burberry brands are now popular than products from other companies.   Company has rich and talented workforce which work tirelessly to ensure its products are chic and contemporary. Unlike other companies which remained indoors, Burberry Company held exclusive international shows which fitted international standards as well as taking information to clients in order strategy to reimage it. This helped in creating markets for the Company. The brand has continually popularized their products in order to compete effectively in the public arena (Rohwedder and Johnson 27). In addition to that, Burberry succeeded in venturing into the global market and was ranked among the popular brands in European markets in the 1960-1990 (Alexander and Hayley 91-94).

Due to the saturation of the European market, Companies have ventured into new markets of Eastern Asia which has a total population of about 3.4 billion people (Vollmer and Karen 16). The rapid population growth in the region increases demand of products, hence a large market. Free markets in the region have developed three structural evolutions which are; concentrated retail market, larger size of retail markets and presence of small, large and corporate structure (Alexander and Hayley 99).

Currently, Burberry has large markets in China and Hongkong with 57 stores distribute in the region, thereby, giving them a high turn over (Alexander & Hayley 99-101). Despite this, other luxury companies still control larger market segment in China, consequently reducing the company’s marketability (Alexander & Hayley 99-101).

The Burberry Company has engaged in joint ventures with local Companies in the Middle East, leading to a 40% increase in the sales of its brands (Rohwedder and Johnson 35). The Company is also working hard to establish itself in North and South America (Rohwedder and Johnson 20). Burberry has exploited the social media to popularize itself globally and to distribute its information to its markets over facebook, you tube and tweeter (Vollmer and Karen 7).  Through the social media, the Burberry has restored its tainted public image. The online market population includes individuals whose preference for the Burberry brands reflects the global trend (Rohwedder and Johnson 28). Burberry used social media to launch its product, for example, the body fragrance, which they launched over the face book. This brought about the digital purchase of Burberry products.

Despite their success, more marketing strategies are required because social media is not enough to publicize a company since customers need to be assured of the product’s authenticity (Vollmer and Karen 7). This is because there is stiff competition from other manufacturers who may steal away their clients. Further more; the company has no proof that it is the leading online marketer. It may boast of millions of online fans while in real sense, only a hundred of thousands visit their sites.

In conclusion, the Company has gone through a lot of transformation under the leadership of Angela. Globalization boosted by social media, has helped it open more branches in the world helping it develop its brand and market. Their bran solid performance and popularity is attributed to its involvement in innovative design and retail strategies that appeal to the preference of luxury commodities to customers.