Boboli Puts Forward Three Strategies To Solve Difficulties And Meet New Challenges.

In October 15th, Burberry released its mid term earnings report. According to the results, Burberry's total revenue amounted to 1 billion 105 million in the first half of September 30th, slightly higher than 1 billion 100 million in the same period last year, but it did not meet the analyst's forecast of 1 billion 160 million pounds, of which retail business's total revenue was 774 million, although it was 3.8% higher than the same period last year, but far less than the 818 million target of analysts.

Japan is still a land of Burberry and is working with Shiseido.

The US and the Asia Pacific region, excluding Japan, still make Burberry headache. The former has only a single digit increase due to the decline in domestic consumers' willingness to buy, while the latter is showing a 2.1% year-on-year downward trend because of the difficult situation facing the luxury industry in Hongkong.

However, thanks to a steady stream of tourists, European retail sales achieved a two digit growth. Despite the poor sales in the Asia Pacific region, the Burberry reported many outstanding performances in the Japanese market in its earnings. Through the addition of 6 new stores and expansion of children's clothing in Tokyo and other places, Burberry's sales in Japan increased by 50%.

Bailey also stressed in the statement that the upcoming third quarters of the various festivals will become a critical period for Burberry to turn around. The company has already prepared online, downgrading and other sales channels. For Burberry, who is especially good at digital marketing among the major luxury brands, promoting sales through social media cooperation can indeed play a "booster" for the sluggish Burberry.

Burberry is also doing this.

In the just concluded London Fashion Week, Burberry used social software Snapchat to broadcast its spring and summer new product conference last month.

It has also become the first luxury brand to build self built channels on Apple music. All these actions indicate that Burberry is trying to attract younger generation of Western consumers to establish long-term market concerns and gradually reduce their dependence on the Chinese market.

"It is not difficult to understand why Burberry wants to re invest in the consumer groups in the western countries, to know that in France, Spain, Italy and other places, Burberry sales can rise more than 20%."

Lianna Brinded, a columnist for business blog Businessinsider, talks about it.

"It's time to get out of the Chinese market."

She said.

In order to enhance profitability, Burberry is also actively expanding the retail channels for cosmetics. Apart from promoting cooperation with the world's cosmetics retailing platform, the Japanese market, which has a good market performance, Burberry announced in March this year that it would hand over the Japanese distribution rights of its perfume business to the Japanese cosmetic brand Shiseido, and announced that it would also cooperate with the development of high-end skin care products and make-up series.

However, Burberry is in

The sale is still unable to make up for its low performance in the Chinese market, which accounts for only 2% of its revenue in Japan. But in mainland China and Hongkong, this figure can reach 30%. With the promotion of external factors such as devaluation and anti-corruption, and the rational return of Chinese consumers to luxury goods, Burberry's sales in the Asia Pacific region will continue to decline.

Poor current situation also plagued Burberry brand managers.

Just as the mid term earnings report was released, Burberry group CFO Carol Fairweathe announced in a conference call on Thursday that the company will make a 30 million pay reduction plan for all employees including CEO Christopher Bailey.

In the past year, Christopher Bailey, who was very proud of it, just got a raise, earning 7 million 500 thousand pounds a year.

"In the first half of this year, some key markets in our country have had an impact on consumer demand due to changes in the external environment. In order to cope with this situation, we will focus on promoting sales and productivity and increasing resilience to disposable costs."

Burberry CEO and creative director Christopher Bailey said in a public statement.