During her first few years with Burberry, Bravo and her team had to deal with the Asian economic crisis and the effects it had on the Burberry brand. FYI: The Asian economic crisis was a period of financial emergency that gripped much of Asia beginning in July 1997, and raised fears of a worldwide economic meltdown due to financial contagion. While the company worked on positioning itself among luxury leaders in the fashion industry, Burberry began facing problems caused by its over-dependence on Asian customers. In 1998, sales decreased by seven percent and profits plummeted in its retail and wholesale segment due to the Asian economic crisis. The company began to slow down its shipments to the Asian grey market—a market in which its products were sold cheaply or re-imported back to Europe and sold at a discount—and shut down three production facilities in the United Kingdom. Whereas this decision hurt the firm’s profits in 1998, management felt it would, in the long run, protect the Burberry image.
As Burberry entered the new millennium, its financial results improved dramatically. The Asian market recovered, its European and American markets grew, and its new brand strategy began to pay off. Financial reports for the last few years (2008-2011) show that Burberry is continually growing and exceeding financial expectations. Some of the brand’s highlights include strong financial performance (Revenue up 27% and retail/wholesale revenue up 29%), strategic operational progress, and continued focus on investing for growth.
http://www.burberryplc.com/bbry/newsrel/finnews/2011/2011-01-18/
"Burberry Ltd." International Directory of Company Histories. 2001. Encyclopedia.com. 28 Sep. 2011 <http://www.encyclopedia.com>.
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