Burberry tops the FTSE 100 with help from the foreign language internet
posted Wed, 2011-07-13 13:01 by
It’s famed for its tartan print and posh umbrellas, but international fashion retailer Burberry held the accolade of being the best performer in the FTSE 100 yesterday.
Its success has been attributed to its recent growth in the Middle East and China, which saw the Burberry website translated and localised for these audiences. It’s a move which has certainly paid off, with the company reporting a rise in Asia-Pacific sales by 60% in the last quarter alone.
The announcement caused a 5% surge in share prices, sending Burberry straight to the top of the FTSE 100.
Burberry’s chief executive Angela Ahrendts said: ‘While mindful of global macro challenges and increasingly tough comparatives in the balance of the year, we remain confident in our strategies and will continue to drive profitable growth.’
It seems that fashion retailers are really paving the way for the foreign language internet at the moment. It was only last month that we blogged about Asos.com reporting that overseas sales figures had overtaken UK sales for the first time in the firm’s history.
And the sales figures really do make sense. Consider the facts: There are more foreign language speakers than ever on the internet, and with research showing that people are four times more likely to make a purchase online (according to the Common Sense Advisory’s ‘Can’t Read, Won’t Buy’ report) if they have information in their native language. It’s no wonder these retailers are making a killing.
At the opposite end of the FTSE 100, high-street favourite, Marks & Spencer, were languishing at the very bottom after speculation over their trading future. A quick comparison of these retailers’ websites reveals a startling fact indeed.
Burberry proudly hosts a massive 45 localised websites (in many cases translated).
And M&S? Just one.
In this time of fragile economic stability, it seems that savvy retailers will profit only by realising the potential to be had on the foreign language internet. Let’s hope it’s a trend that really catches on.
Post new comment