Burberry Grows, Aquascutum Struggles

Autumn/Winter 2012 collection

High-fashion Burberry is adding new stores in fast-growing cities with the potential to be tomorrow's style centres. Its runway shows are major media events and celebrity magnets.

Many of Burberry's upmarket customers are frequent travellers and visit its branded stores in London, Paris and other destination cities. Thanks to the brand's status-symbol cachet, Asian-Pacific consumers are opening their wallets even wider to buy and buy. Sales in those areas now account for more than 37% of Burberry's turnover.

With new stores in Latin America, the company is positioning itself for future growth and defending against the possibility of lower sales due to the uncertain financial situation in U.S. and European markets.

Meanwhile, Aquascutum, once a strong Burberry rival, has gone into administration and is now owned by YGM Trading Ltd of Hong Kong. Can Aquascutum regain its fashion edge and challenge Burberry in the coming years?