Burberry Self Rescue Difficult Market Two Times A Year

According to the latest performance of Burberry, as of March 31, 2016, the group's annual profit fell 10% to 421 million pounds, while the same store sales recorded a 1% decline. The sales in the same store in Hongkong, Macao and China actually recorded an increase of 3%.

Insiders pointed out that blindly pursuing

There is a greater risk for the long-term development of the brand, which means that the buying strategy can disintegrate the fashion week pattern that luxury continues.

In recent days, the British luxury brand Burberry has lowered the price of its classic handbag style and some new products in early autumn. The price range has reached 10%-15%, of which the classic handbag has fallen by 20%.

The Beijing Commercial Daily reporter, as a consumer, conducted an investigation into the flagship store in Beijing. It was learned that Burberry not only implemented price reduction measures in Hongkong, but also adopted a price reduction measure in the mainland a week ago, with a price cut of about 20%, mainly involving bag products.

Reporters learned that this price adjustment is following the Burberry in the mainland market for some scarves, accessories and a small number of windbreaker products, the brand once again for the handbag products to implement a price reduction strategy.

According to the reporter's on-the-spot investigation, a small Horseferry leather leather Kanter handbag is priced at about 10 thousand yuan before the price is reduced, the price of the product is 7300 yuan after the price is reduced, and the price of the black full leather trumpet handbag is 24 thousand and 500 yuan before the price is reduced, and the price is 17 thousand yuan after the price is reduced.

A blue cashmere lady's coat is priced at 26 thousand yuan before the price is cut, and the price is only 21 thousand yuan after the price is cut.

Burberry salesperson said that the brand implementation of the price reduction strategy is mainly hoping to reduce domestic and foreign spreads, thereby stimulating domestic sales, and at the same time being subject to domestic tariff reduction.

Insiders pointed out that in the current weak economic environment, luxury brands choose to cut prices strategy is an inevitable choice.

From the frequency of Burberry price cuts and product range, the intensity of price reduction can be seen.

Burberry is still in London September 19th.

For the first time, we opened the new look show mode.

For this new model of "buy and sell", Burberry said that it has broken through its usual natural form, and has reduced the time lag between display and retail market for nearly 5 months, strengthened product supply chain management, highlighted product timeliness, seasonality and personalization advantages, and narrowed the intimacy between consumers and brands.

In this regard, Zhou Ting, President of the Institute of wealth and quality, pointed out that the mode of "watching is buying" is a subversion of fashion week.

Burberry sees the benefits of this new model but ignores the long-term impact on the brand.

As the first tier luxury group in the world, Burberry implemented a price reduction strategy in China, and the continued weakness of its brand performance became the main reason for the company's countermeasures.

Reporters read the earnings report, Burberry group revenue in fiscal 2016 achieved 2 billion 500 million pounds, down 1% over the same period.

After adjustment

It recorded 421 million pounds, down 10% over the same period.

And as of the four quarter of March 31st this year, Burberry began to show a marked decline following the flat performance in the three quarter, and the retail channel fell by 5% compared with the sales in 2016.

From the global market analysis, Burberry's sales decline in the Asia Pacific region is particularly evident, of which Hongkong's performance has plunged continuously for 20% consecutive quarters in the three quarter.

It is reported that in the second half of fiscal year Burberry 2016, sales fell by 2% year-on-year, and the concern is that if the market performance of Hongkong and Macao is eliminated, the group's performance in the second half of the fiscal year will be reversed by an increase of 1%.

It can be seen that in the environment of RMB depreciation, the implementation of the mainland anti-corruption policy and the high profit market performance in Hongkong and Macao, the overall market performance of the group has been greatly affected.

The European market suffered many terrorist attacks, tourists declined, sales continued to slow down interference, the fourth quarter sales performance is obviously poor, the Middle East and the United States market performance also no breakthrough.

Although Japan's performance rose by several times, in essence, the Japanese market's franchise revenue dropped by 19 million as the group's authorized business in Japan expired.

At the same time, the group noted that Burberry is expected to continue to fall in the first half of 2017, thanks to the weakness of the luxury market.