Ever Expanding Virgin Brand

The Virgin Group is perhaps one of the most diversified conglomerate of companies in the whole world. The company owns more than 200 private companies. Some of the Virgin Group’s industries include airlines, vacation tour operations, train operations, video, music and CD retailing, financial services, beverage bottling, music recording, publication, movie house operations, broadcasting, cosmetics, clothing manufacturing, and internet services.

The conglomerate was the brainchild of Richard Branson who has displayed his entrepreneurial skills when he was just 17 years old. At this young age, he started publishing his own magazine, Student. By the end of the 1990s, the Virgin Group is a multi-million dollar company. According to polls, 96% of the world’s consumers have heard of the Virgin brands.

Branson started Virgin in 1970 as a mail-order record company. When he was unable to respond to the tremendous demand for his products, Branson shifted strategy. In 1971, he opened small record shops which were largely accepted by his customers. Soon, these small shops became a string of Virgin Record stores.

Branson continued to seek business opportunities through the 1980s. He tried investing in the airline industry. He bought Beoing 747 jets, opened the Virgin Atlantic Airways, and transported passengers to and fro London and New Jersey. In the 1990s, his airline company has started serving other routes within the US. International flights were also opened to Greece, Tokyo and Hong Kong.

Branson purchased a luxury hotel in 1984 in Deya Mallorca. This luxury hotel became the forerunner of the string of Virgin Hotels that would later invade the tourism markets of the UK and the Caribbean. To complement the hotels, Branson also opened Virgin Holidays in 1985.

In 1985, Virgin reported sales of $225 million and profits of $25 million. The amounts were contributed by 60 Virgin retail stores, the TV operations, the recording studio, and the airlines.

By the end of the 1980s, Virgin Group sales rose to $1 billion per year. Virgin Group has 150 member companies spread in 20 countries worldwide. By 1991, sales were reported at $2 billion.

In the 1990s, Virgin Group continued to expand. Virgin Megastore has opened 20 more international locations. Several small airline companies were acquired to increase its large fleet. Despite the economic slump of the 90s, Virgin’s expansion was unstoppable.