Burberry Reduce Stores And Adjust China'S Sales Strategy

Burberry valued the Chinese market, and even before the US and British markets, it also experimented with new digital order delivery methods in China. It can pick up goods from the stock of local distribution centers and shop networks, improve inventory availability and shorten delivery time.

In 2016, Burberry plans to launch a comprehensive online and offline distribution mode in the United States and the United Kingdom.

A lot of luxury goods have been cut down in China. A reporter asked at a conference call whether Burberry will also raise its price in Europe and cut its price in China.

Carol Fairweather said that Burberry will try to maintain its price level in the same industry.

However, in the Chinese market, an important issue facing luxury brands is counterfeiting.

Just the day before yesterday, the luxury goods manufacturer Kai Yun group once again sued Alibaba for counterfeit goods on Taobao.

At the meeting, the guardian asked the company how to evaluate the relationship between Burberry and Alibaba.

"We have a partnership with Alibaba. At present, we are satisfied with our cooperation.

As you know, we have flagship stores on Tmall, which has a positive impact on our public relations work and reputation promotion in China, and our sales volume has also improved.

Alibaba also promised to crack down on counterfeit goods.

CarolFairweather said at the conference call.

At the same time, this is also the first year of Christopher Bailey, the chief executive of Burberry group.

Last May, after AngelaAhrendts left, he took over the post.

Interestingly, Christopher Bailey seems to have little interest in the media, and is always the chief financial officer CarolFairweather when dealing with the media.

Recently, reporters participated in the Burberry global media conference.

Burberry Carol Fairweather, chief financial officer, said that in the fiscal year of 2015, the group performed well, earning 2 billion 500 million pounds, a real growth of 11%, adjusted pre tax profit of 456 million pounds, an actual increase of 7%.

Although Carol Fairweather used the word "strong" to describe the performance of Burberry 2015, she still expressed some market uncertainty.

Just after Burberry released its earnings report, the company's share price fell by 4%.

This year, the traditional windbreaker and scarf are the main sales force of the group this year.

Cosmetic business grew by 26% in real terms, and the growth of perfume business (accounting for more than 95% of total revenue) was mainly due to the successful listing of My Burberry endorsed by Kate Moss and Ms Delevingne.

The chief creative officer and chief executive officer, Christopher Bailey, said in the earnings report: "facing the challenging external environment, our global team is more focused on developing core products, publicizing the British products symbolizing the Burberry brand, and further promoting online and offline integration."

As we all know, Burberry is famous for its bold digital marketing.

Most luxury brands consider digital marketing to be harmful to the brand image. Prada, Chanel and others have been cautious about the Internet.

It's only this year that they finally say they want to do business.

But Burberry has always been positive in this regard.

In order to improve the Burberry official website and enhance the location of the website with the coverage of the third party website, Burberry will continue to cooperate with the US Nordstrom, the UK Harrods and the South Korean Shinsegae.

In addition, Burberry sells perfume on Amazon, USA, UK, France and Germany.

In China, Burberry provides various products in Tmall's customized brand exclusive space.

Burberry said that because of its continuous investment in digital services, data analysis, and proprietary and third party platforms, the company has invested a lot in digital marketing, and digital business has performed well in all regions.

Social media is also an important direction for Burberry to digitalize innovation.

Burberry has been working with Facebook, Twitter, Instagram and Japan's LINE.

In April 2015, Snapchat launched the "Londonin LosAngeles" campaign.

It will also be an important platform for the development of Burberry.

However, the market of luxury goods is not optimistic. In the 2016 fiscal year, Burberry will strictly control costs, but one of the three areas that will focus on investment is digital business investment.

The other two investments are

Investment and technology investment.

China is a market valued by Burberry.

About 25% of Burberry's global sales are made by Chinese consumers.

But in 2015, Burberry performed poorly in Hongkong.

"The team is very concerned about the Hongkong market, and will also pay more attention to the localized consumer groups."

Carol Fairweather said at the meeting.

In addition, Burberry also attaches great importance to the travel shopping of Chinese consumers.

In fiscal year 2015, the revenue generated by Chinese retail consumers worldwide increased by double digits, about half of them in China.

In the current fiscal year, Burberry China's comparable sales achieved an increase of medium to high digits.

In China, we continued to improve the store portfolio, closing 10 stores during the year, and eventually the total number of stores was 68. In fiscal year 2016, we planned to close about 5 stores and reduce the average sales area by a small margin.