Porsche Design TwinBag campaign
Porsche Design reported a 45 percent increase in sales for the 2012 financial year that is largely a result of its strengthened retail presence.
The most growth was seen in Porsche Design’s own retail operations, which recorded a 94 percent growth. This increase is likely from the brand’s release of new products and its push of fashion throughout 2012.
“We are particularly pleased with the development of our fashion collection,” said Juergen Gessler, CEO of Porsche Design, Bietigheim-Bissingen, Germany.
“This still relatively new area already accounts for the largest proportion of sales in our retail business,” he said.
“We are very proud of the strong and growing demand for our philosophy over the last 40 years, especially the massive development of Porsche Design from an accessory brand to a fashion lifestyle brand with well-known reputation on international fashion shows was a major factor to be accepted in the international luxury market.”
Retail boost
In the 2012 financial year, Porsche Design saw growth in all of its business segments in 2012. The company’s revenue rose by 45 percent to $149 million, up from $102 million in 2011.
Porsche Design’s retail operations saw a growth of 94 percent. This boost could be from the number of stores opened.
The brand opened its own retail stores in Munich, Berlin and Hong Kong. It opened new franchise stores in Istanbul, Abu Dhabi, Toronto, Salt Lake City, Houston and Mexico City.
Also, London department store Harrods awarded Porsche Design the Exclusive Launch Award and the Sales Density Award. Both were based on the highest sales recorded per square meter in the store.
In addition, the brand created the P’9981 BlackBerry smartphone, which further contributed to the company’s growth.
The P’9981 smartphone went on sale Jan. 2 at Harrods. It is available at Porsche Design shops as well (see story).
P’9981 launch
Porsche Design’s growth has come from its ability to strengthen its retail presence and design new relevant products.
“Combining the DNA of Porsche Design with fashion trends as well as identifying demand in the market for unique items such as the Porsche Design Smartphone P’9981 by BlackBerry strengthen the position as a leading luxury brand from Germany,” Mr. Gessler said.
Going forward
Porsche Design has plans to maintain its strong retail presence and boost its involvement in the fashion industry.
The brand will be designing more products exclusively for women in the 2013 financial year.
Porsche Design launched its first women’s handbag the TwinBag on March 1.
TwinBag
“In the new financial year, we are focusing in particular on the target group of women,” Mr. Gessler said.
“Although Porsche Design has always had a women’s range, it has never been quite so comprehensive as in 2013,” he said.
“We are also entering new marketing, with the opening of the first stores in our own retail network in China.”
Overall, the growth that has been seen in the luxury market seems to indicate that affluent consumers are confidently spending again and will continue to spend this year.
“Over the last financial year, our Porsche Design luxury brand has once again proven the strong international demand for German luxury goods,” Mr. Gessler said.
Final take
Erin Shea, editorial assistant on Luxury Daily, New York