Business Units or Product Lines

Burberry operates through several key business lines: Apparel, Accessories, Beauty, and Licensing. The Apparel line includes outerwear, ready-to-wear clothing, and children's wear. Accessories encompass handbags, small leather goods, and other fashion accessories. The Beauty department deals with fragrances and cosmetic products. Licensing includes agreements for eyewear and timepieces.

Business Models for Each Product Line

Burberry generates revenue primarily through retail sales in their branded stores and online platforms, wholesale distribution to multi-brand stores, and licensing. Major expenses include production costs, marketing, store operating expenses, and personnel salaries. Apparel contributes significantly to revenue, with the brand's trademarks and licensing agreements providing steady income and maintaining brand presence.

Future Opportunities for Growth

Burberry's growth opportunities lie in expanding its digital sales channel, capitalizing on luxury demand in emerging markets, and increasing brand visibility through strategic partnerships and collaborations. The company is also focusing on sustainability, which could appeal to environmentally-conscious consumers, potentially driving new sales.

Potential Major Risks

Burberry faces risks including fashion trends rapidly changing, economic downturns impacting luxury spending, and increased competition in the luxury market. Currency fluctuations pose financial risks, and reliance on certain geographical markets like China may affect revenue amid changing local regulations or economic conditions. Additionally, supply chain disruptions and changes in consumer behavior due to global events remain pertinent risks.