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    Analysis of Demand Drivers: Products Available % Growth in Sales From 2018-2019

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    Satya Phaneendra
    Burberry's demand drivers and consumer trends were analyzed. Key factors influencing purchasing power included high quality, uniqueness, brand history and emotional connection. Digitalization, sustainability, counterfeiting and diversity were trends affecting revenues. Products like apparel grew 1% while handbags grew 7% and shoes/jewelry grew 9%. Younger generations and the Chinese market were major sales contributors. Social media was the top platform used by customers for purchase decisions. Considering these demand factors, it makes sense for Kering to invest in acquiring Burberry.

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    Analysis of Demand Drivers: Products Available % Growth in Sales From 2018-2019

    Uploaded by

    Satya Phaneendra
    39 views1 page
    Burberry's demand drivers and consumer trends were analyzed. Key factors influencing purchasing power included high quality, uniqueness, brand history and emotional connection. Digitalization, sustainability, counterfeiting and diversity were trends affecting revenues. Products like apparel grew 1% while handbags grew 7% and shoes/jewelry grew 9%. Younger generations and the Chinese market were major sales contributors. Social media was the top platform used by customers for purchase decisions. Considering these demand factors, it makes sense for Kering to invest in acquiring Burberry.

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    Demand Drivers

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    Burberry's demand drivers and consumer trends were analyzed. Key factors influencing purchasing power included high quality, uniqueness, brand history and emotional connection. Digitalization, sustainability, counterfeiting and diversity were trends affecting revenues. Products like apparel grew 1% while handbags grew 7% and shoes/jewelry grew 9%. Younger generations and the Chinese market were major sales contributors. Social media was the top platform used by customers for purchase decisions. Considering these demand factors, it makes sense for Kering to invest in acquiring Burberry.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    39 views1 page

    Analysis of Demand Drivers: Products Available % Growth in Sales From 2018-2019

    Uploaded by

    Satya Phaneendra
    Burberry's demand drivers and consumer trends were analyzed. Key factors influencing purchasing power included high quality, uniqueness, brand history and emotional connection. Digitalization, sustainability, counterfeiting and diversity were trends affecting revenues. Products like apparel grew 1% while handbags grew 7% and shoes/jewelry grew 9%. Younger generations and the Chinese market were major sales contributors. Social media was the top platform used by customers for purchase decisions. Considering these demand factors, it makes sense for Kering to invest in acquiring Burberry.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 1

    Analysis of Demand Drivers

     Factors Influencing Buyers Purchasing Power:  Trends in Demand affecting Revenues:


    • High Quality • Digitalization (Can be leveraged to counter fake products)
    • Product Uniqueness • Transition to Sustainable Products (Depends on Customers Perception)
    • Emotional Connect with the Brand • Counterfeiting
    • Brand’s History • Unanticipated Pandemics like Covid (Building up agile supply chains)
    • Relativity • Major cut of revenues is from China
    • High Price ( Varies according consumers perception of Brand) • Accommodating Diversity & Inclusion (Youth & LGBTQ+ customers)

     Products available and Market Segmentation:  Consumer Preferences : Customer Rentention is primarily linked to Brand’s
    Identity and Emotional Connect as they don’t mind to switch between
    Products available % Growth in Sales from 2018-2019
    brands since the switching costs are very low and there is significant
    Apparel 1% availability of substitutes. Therefore, it boils down to understanding
    customers’ preferences and aligning company’s strategies to it’s customers’
    Handbags & Leather Goods 7%
    preferences. For Eg: Consumers using the platforms to make purchase
    decisions
    Shoe & Jewellery 9%
    Platform % customers using the platform
    • With an annual growth rate of 4%, Majority of the sales come from Gen-Z and Social Media 54
    Millenials, while the Chinese market is primarily responsible for major chunk of
    Following Celebrities 17
    Burberry’s revenues. On the other hand, retail & wholesale markets grew by for 1%
    each, while digital market accounted for 22% growth. This shows Burberry’s strong Fashion Magazines 13
    presence online.
    Fashion Shows 8
    Other 8

    Considering all the above factors, it makes sense for Kering to invest 6.81GBP to acquire Burberry as the

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