The Burberry Boom: luxury sales on the rise

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Although a growing portion of the world is experiencing a recession, luxury goods are not suffering. Rather, they’re experiencing a sales boom.

US buyers in particular have been noted for their high-end spending, with the average transaction at New York’s Manolo Blahnik’s store coming in at over US$900. Texans appear to also have a shoe fetish but for Christian Louboutin’s, with the average transaction at their Dallas store coming in at US$1,108.

But the real worldwide success is the brand known for its famous red, black and camel-coloured check design: Burberry.

While the iconic print used to be seen as a brand that could be afforded by lower-markets, strong performances in cities such as London, Beijing, Hong Kong and Paris boosted revenues by 21 per cent at the end of 2011.

Some have credited the brand’s booming success to royal-style-icon, Kate Middleton. When she appeared in a $960 flared Burberry Trench coat last year, the coat sold out in almost every size within 24 hours.

But the brand insists that it’s Burberry’s investments in flagship markets and digital technology that has led to its success amidst the Eurozone crisis - the brand boasting over 10 million fans on their Facebook page.

Retail sales accounted for over 70 per cent of Burberry’s revenues in the October to December period last year, which was an underlying increase of 23 per cent.

While Burberry has continued to expand into new markets such as the Brazilian demand for luxury goods, they are also consolidating their success in more traditional locations with new stores opening in Sao Paulo and Paris.

Although the brand may not credit them, with stars such as Rosie Huntington-Whiteley and Kate Bosworth joining Kate Middleton on the Burberry bandwagon, it’s almost certain their success will continue to grow amongst any tough financial times ahead.

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