Rolls Royce Target Super Rich

Rolls-Royce is making a significant investment of £300 million to expand its manufacturing facility in Goodwood, a move driven by the increasing demand for bespoke and highly personalized vehicles from the super-rich. This expansion is the largest since the plant's opening in 2003 and will support the company's Bespoke and Coachbuild programs. These programs allow clients to extensively customize their vehicles or even create entirely original designs, catering to the unique tastes and preferences of high-net-worth individuals. The primary markets fueling this demand are the Middle East, North America, and Europe, where there is a strong appetite for luxury and exclusivity. Rolls-Royce's CEO, Chris Brownridge, emphasized that the company's focus is not on increasing overall production but on producing more special commissions and remarkable motor cars. This strategy aims to enhance the brand's prestige and appeal by offering unparalleled customization options, ensuring that each vehicle is a unique masterpiece. By leveraging customization and exclusivity, Rolls-Royce can strengthen its market position and attract affluent customers who seek distinctive and personalized luxury vehicles. This approach not only differentiates the brand from competitors but also reinforces its reputation as a leader in the luxury automotive industry.

BBQ: How can luxury brands like Rolls-Royce leverage customization and exclusivity to enhance their market position and appeal to high-net-worth individuals?

Rolls Royce

Hornby - Back on Track

Model train company Hornby has reported a significant turnaround in its financial performance, thanks to a boost in sales during the festive period. After posting a £5.1 million loss in the six months to September 2023, Hornby entered a consultancy arrangement with billionaire Mike Ashley, which has helped stabilize the company. Sales increased by 7% in the quarter ending December 31, with a notable 23% revenue growth in December alone. Chief Executive Olly Raeburn highlighted the company's success in attracting new customers, particularly during Black Friday, and emphasized the importance of reducing inventory levels and focusing on core brands. This positive performance has led to an 8% increase in overall group sales for the financial year to date, with gross profits up by 10%.

 BBQ: How can strategic partnerships and effective inventory management contribute to a company's financial turnaround?

Hornby

Chicken Hotel Pitches to Dragons' Den

 

A businesswoman has pitched her idea of a hotel for chickens on the BBC TV show Dragons' Den. Katriona Shovlin has been running Hen Weekend Chicken Boarding from her home in Upchurch, Kent, since late 2023. The TV programme - in which contestants pitch a business idea to judges - returns for series 22 on BBC One on Thursday. The chicken hotel grew from a hen house in her back garden to care for abandoned birds. But Ms Shovlin soon was taking care of family pets when their owners were away. She said: "We've had up to 20 chickens here at times from families who are going on holiday or in the process of moving home. "One family read about us on social media and drove all the way from Berkshire for me to look after their chickens." The TV appearance is the hen hotel owner's most high profile in the media so far after previously featuring in national newspapers and on BBC Radios 1 and 2 when the business launched. Ms Shovlin said she had been surprised when the TV producers first got in touch. Viewers can see if Ms Shovlin was successful in her pitch for investment on Dragons' Den.

BBQ - Do you think Katorina got the investment?

Dragons Den

Drab December for Retail

 

The retail sector in the UK faced a challenging end to 2024, with a "drab December" capping off a disappointing year for many retailers. According to the British Retail Consortium (BRC), footfall dropped by 2.2% compared to the previous year, marking the second consecutive year of decline. Factors such as cost of living pressures, the rise of online shopping, low consumer confidence, and adverse weather conditions contributed to the downturn. Despite creative efforts by shop owners, like offering Santa's grottos, author events, and complimentary drinks, overall spending remained subdued. Leanne Fridd, owner of Bookbugs and Dragon Tales in Norwich, mentioned that although footfall was on par with last year, the overall spend was down, impacting the bottom line. Similarly, Tom Rowley of Backstory Bookshop in South London tried to enhance the shopping experience by offering drinks to customers, but the results were mixed. The BRC has called for government intervention to reduce business rates, which they argue are stifling investment in town centres and high streets. As retailers look ahead to 2025, innovative strategies and government support will be crucial to reversing this trend and revitalizing the shopping experience.

BBQ: How can retailers adapt to changing consumer behaviors and economic pressures to boost footfall and sales in the coming year?

Drab December

Coca-Cola Lime Returns

Coca-Cola has announced the return of Coca-Cola Lime and Coca-Cola Zero Sugar Lime to its lineup in Great Britain. Originally launched in 2005, Coca-Cola Lime was discontinued in 2007, while the zero-sugar version remained available until 2018. Now, Coca-Cola Zero Sugar Lime is back in 500ml, 2L, and 8x330ml formats, initially sold exclusively to Tesco Group customers until the end of March, after which it will be available at all major retailers. Coca-Cola Lime will join other flavors like Coca-Cola Lemon, Coca-Cola Cherry, and Coca-Cola Vanilla in the brand’s flavored cola portfolio, which was relaunched last year with new packaging. “Following the hugely popular relaunch of new flavors last year, we’re excited to continue expanding our flavors portfolio with the launch of Coca-Cola Lime,” said Charlotte Walsham, Coca-Cola's senior brand manager. “Fans of Coca-Cola can now enjoy their favorite original taste with a refreshing tangy citrus twist.”

 

BBQ: Why is it important for Coca-Cola to manage their product portfolio and still release new products?

Coca Cola Lime

Rare Apple Sale in China

Shoppers in China are getting rare discounts on iPhones as Apple faces growing competition from local brands. The four-day promotion, which starts this Saturday (4 January), includes discounts of as much as 500 yuan ($68.50, £55.30) on some of the US technology giant's newest handsets. Chinese phone maker Huawei has also cut prices of its high-end mobile devices by as much as 20%. The discounts come as consumers in China remain hesitant about spending because of the country's economic challenges. The offer covers Apple's top models as well as older handsets and some other devices. The biggest discount of 500 yuan will apply to Apple's flagship iPhone 16 Pro, which has a starting price of 7,999 yuan, and the iPhone 16 Pro Max which currently costs 9,999 yuan. The discounts being offered by Apple and Huawei reflect a wider trend in China. From online retail giants to the country's car makers, deals are being offered in a bid to attract customers who have been reluctant to spend as the world's second largest economy slows. The Chinese government has also stepped up efforts to boost consumption. Last year, Beijing launched a trade-in programme to encourage consumers to replace old products such as cars and household appliances. Against this backdrop, Apple's share of the Chinese market has come under increasing pressure from local rivals, such as Vivo and Xiaomi.

BBQ - Why would Apple not offer a price promotion in other parts of the world?

Apple Sale