[youtube http://www.youtube.com/watch?v=VkzkirPFnEo&w=590&h=355]
The luxury sector is hot right now – Prada is gearing up for an IPO and LVMH has recently bought Bulgari. Angela Ahrendts CEO of Burberry was asked about the future of Burberry: “Our sector over the past 10 years would show you that single standalone brands have outperformed the luxury portfolio over the long run. We tell investors that we do not still own 100% of our brand around the world and we would prefer to buy our own brand back first.”
This sector is on fire, which has led to a raft of recent corporate activity. When luxury is on, luxury is on. It is one of the hottest trending sectors that analysts have on double-digit growth.
Burberry is in a constant state of evolution, Ahrendts explains. “Right now, it is all about emerging technologies and emerging markets.”
“I don’t believe that you are ever done. Is life ever going to stop and stand still? We have to move as fast as the world is moving. I’ve got kids, I’ve got teens. They are digital natives. That is their language. Forget luxury, as a great company you have to keep evolving.”
Burberry is like Woody Allen’s shark in Annie Hall. “If you stand still then you lose,” she says. “Who would have thought that iTunes would alter the music industry? Who would have thought that 12 years ago Apple was on the verge of bankruptcy?”
“This is another exciting chapter in the book called Burberry. That chapter is about brand, culture and digital.”
PS: Burberry, the luxury goods brand, is planning to “aggressively reinvest” in London by reconfiguring its store portfolio and opening new retail space, according to chief executive Angela Ahrendts. Published in the TELEGRAPH today.