Burberry Released The First Chinese New Year Ad Price Plunge

British traditional luxury brand Bobo Li released the theme of Chinese New Year's advertising on Thursday. The new advertisement of the brand ambassador Zhao Wei and Dongyu Zhou conveys the theme of "Reunion" in Chinese Lunar New Year, which is presented in the form of a family portrait in an informal urban environment.

The above advertisement is the first Chinese theme advertisement with strong Chinese atmosphere released by the British brand. Its originality is quite conservative and has no bright spots. However, in the controversial Chinese theme propaganda, the conservative brand may have been the best strategy for the Chinese market, but the British fashion brand has always been the opposite of the pioneer. Even if the brand new creative director Riccardo Tisci is bold in innovation, the Vivienne Westwood and her husband's Andreas Kronthaler will be launched at the beginning of the term.

In the commercials, Zhao Wei and Dongyu Zhou suspected to play the role of sisters. The arrangement of the characters was an old "family planning" discussion. They failed to comprehend the brand new "two child" policy. Although the relationship between the characters tried to show family happiness, the expression of the characters was still very "British".

The whole advertising creativity is undoubtedly trying to cater to the Chinese market, but the effect is obviously not ideal. After the exposure of the commercials, the social media in China has caused mixed comments. Only the two stars' "fans of flow" try hard to maintain the image of Zhao Wei and Dongyu Zhou.

China's theme of the new advertising positive, in Hongkong retail sales data in November and Apple Inc. (NASDAQ:APPL) Apple Corp's first quarter revenue cut expectations, there is no struggle.

On Thursday, Burberry Group PLC (BRBY.L) shares fell 6%, closing at 1623.50 pence, more than 30% ppm lower than the 52 week high of 2338 pence in August, while Kering SA (KER.PA) Kai Yun group, LVMH Mo, t Hennessy, Mo, BRBY.L, and Hermes group also recorded a decline in European shares on Thursday.

The history of Chinese consumer crazily buying has long been on the decline in the luxury goods industry. Worries about China's slowing economic growth and the decline in high-end consumption have become a reality in January 3rd.

The new iPhone, which is over $10000, is unsalable in China. Chinese consumers have been selling more and more expensive iPhone over 10 years.

China's middle class suffered a sharp decline in the stock market crash in 2018, and property market regulation made it easy for the real estate Book wealth to boost consumer confidence for a long time. Therefore, the decline of new iPhone and consumption of luxury goods is inevitable.

The monthly data released by the Statistics Department of Hongkong showed that the value of jewellery, clocks and watches and precious gifts sales fell 3.9% in November, the first decline in July 2017, and the worst in 22 months in January 2017.

Meanwhile, the growth rate of retail sales in Hongkong in November was the worst in 17 months since June 2017, although the year-on-year growth rate of 1.4% was positive for 21 consecutive months.

In the first half of fiscal year September 29th, the British group has a large exposure in Asia, especially in Greater China. Of the 442 direct outlets, 200 are located in Greater China, and the Greater China stores account for one of the most traditional luxury goods groups.

In the fiscal year 2017/2018, 41% of Boboli group's revenue came from the Asia Pacific market, far more than 36% of the EMEIA market and 23% of the Americas market, and the Asia Pacific market 90% was also the most direct market.

As a result, Thursday's Burberry Group PLC (BRBY.L) shares fell the first place in the industry and also directly reflected their exposure to the Asian market. Once the high-end consumption ability of Chinese consumers declines, the group will bear the most pressure.

In the last round of the decline of the luxury goods industry, the British group's operating profit began to decline in the 2014 fiscal year, until the 2018 fiscal year only stabilized, recorded a slight increase, while adjusted operating profit rose in fiscal 2017.

However, in the first half of the fiscal year, the group's adjusted operating profit dropped again, falling from 185 million to 178 million, or 3.8%, excluding the real increase of 8% after the exchange rate.

Bobury's Chinese New Year's theme ads may also help the group in the upcoming Shanghai link's opening.

Burberry Group PLC (BRBY.L) Bob Boli has previously expressed interest in joining the upcoming Shanghai link business and is embarking on feasibility studies, with no specific timetable.

Source: no fashion Chinese net: Chen Yifei