Burberry Combined With The Profit Model Of Vice Cards Has Changed.

The trend of luxury brand offline is increasing.

Following the Victoria Beckham and Marc Jacobs, the British luxury goods Burberry has officially merged its three largest brands under the enormous pressure of business.

Zhou Ting, President of the luxury goods field and President of the Institute of wealth and quality, told the Beijing Commercial Daily that under the background of luxury winter, the merger of the sub line brand means that Burberry will change its original multi brand strategy and return to its original positioning. Before the main business, the business model of the main brand supporting the facade and the sub line licensing is gradually falling apart, and there will be more luxurious brands closing the secondary line in the future.

Burberry, a flagship store clerk in Beijing, told the Beijing Commercial Daily reporter that it was not clear about the brand merger. The three major sub line brands are now sold in the store, and the sales volume is "yes".

Reporters contacted Burberry via e-mail, but no reply was received before the deadline.

According to the Burberry2015-2016 financial year, the retail sales in the first half of September 30, 2015 were not up to market expectations, and the same store sales in the two quarter even fell 4%, and the share price also dropped to the lowest level in nearly three years.

In order to cut costs,

It also closed the two floor of flagship store in Hongkong pacific place.

A senior luxury practitioner revealed that the sub line brand often changes in the price system driven by economic interests, offset the original location, coupled with over sales, and blurs the brand image.

Last year, Burberry faced severe sales challenges.

It is an inevitable choice based on long-term development.

Burberry owns Burberry London,

Burberry Prorsum three big sub brands correspond to three different styles: formal dress, leisure and walking show.

Among them, Burberry Prorsum was founded in 1904, positioning high-end high-end customers, and even longer than some luxury brands.

Burberry CEO and chief creative officer Christopher Bailey announced in November 2015 that in order to highlight the British foundation of the brand, the three sub line brands will be merged into the main line brand Burberry at the end of the year. All the product lines will be built by the same design team in London, and the series of commodities after the brand reunification will be launched this summer.

The plan is now in force.

This is not the first time that Burberry has shut down its secondary line brand.

Burberry has shut down its Burberry sports.

Christopher Bailey said that the proportion of wholesale and retail sales at the initial stage of Burberry was 7: 3. Now the ratio is 3: 7, and the proportion of retail sales is heavier and heavier. Therefore, the consistency of brands is particularly important.

The sub line brand and brand entry will help the company to increase production efficiency and give consumers better quality shopping experience. This also indicates that the company will change the multi brand strategy of the first two CEOs RoseMarieBravo and AngelaAhrendts.