According to Angela Ahrendts, the CEO of the British luxury group Burberry, the company plans to accelerate its expansion in China and to increase the number of its franchised stores in the country to 100 over the next few years.
Ahrendts said during a press conference held in Burberry's London headquarters that the company will enhance its investment in emerging markets, especially in China, because the Chinese consumers have a great purchasing potential.
To date, Burberry is operating over 90 sales outlets in the emerging markets and most of these outlets are franchised stores. The company currently has 44 franchised stores in China and the sales of these stores have grown at double-digit rates each year.
Burberry's interim report shows that during the first half of its fiscal year end September 30, 2009, the company made revenues of GBP572 million, a year-on-year increase of 6%. Of the total revenue, 10% was from emerging markets. Its pre-tax profit decreased by 19.6% year-on-year to GBP78 million.