Helping a leading Australian Luxury brand, with a strong global presence, boost its profitability and fulfill its Asian expansion goals.
Our client, a successful luxury designer brand, experienced decline in sales turnover and decline in profit margins.
The client wanted to expand its operations across Asia but the team was relying on previous outdated forecasts and profit levels to fund its the new market share ambitions.
Although the luxury brand was still profitable, the sales turnover and the profit levels were on a gradual decline ranking well below the company standards and the industry benchmark.
Their move to expand across the Asian market received mixed response from the leadership team as some viewed it as a necessary step to boost profits while others regarded this move as unnecessary an expense without guaranteed ROI that if not managed well could potentially risk the entire company being liquidated.
I developed and managed the strategic business plan for the luxury brand and established the structures and processes.
My strategic plan incorporated the necessary measures to help the company mitigate the risks associated with their move to expand across Asia.
The Results & ROI
- I implemented a foreign exchange hedging strategy for the luxury brand that elevated its gross profit ratio on cost of goods sold (COGS ) by 3%. Considering its a luxury brand with high turnover, 3% was a significant number.
- Our client realized 10% improvement in the company’s net profit margins that helped them expand their operations to the Asian market
- The company was able to set up its offices in Singapore and Hong Kong. Both these locations were able to fund their own activities within first the 6 months of operations. Each of the above two centers became profitable within the very first year.
- Apart from Singapore and Hong Kong, the client is implementing my 5 year strategic business plan to fund their market expansion in other Asian countries.