However, Burberry has always been a positive response, but to admit that some goods price adjustment, the reason is based on the global exchange rate adjustment and the impact of China’s import tariff reduction.
In fact, Burberry growth in the global market is weak, the performance of the downturn forced it to carry out price self-help strategy. As of March 31, 2016, Burberry Group revenue of 2.5 billion pounds, down 1%, pre-tax profit of 421 million pounds, down 10%.
It is reported that Burberry sales of four percent from the Chinese consumers, and the Asia-Pacific region is obvious, the Hong Kong region even appeared for the third quarter plummeted 20%. Burberry had to find ways to keep Chinese consumers, price cuts is one of the important measures.
Burberry in the luxury big performance in poor, because of its excessive reliance on department stores, brand control capacity is limited, making high-end image damage. At the same time, the management of high-level business philosophy also have a certain impact on performance.
More important reason is that the global luxury goods industry as a whole into the adjustment cycle, and the domestic anti-corruption action, fake flooding and other effects, leading to the major luxury brands deep bottom, forced to cut prices, customs stores, selling brands and other measures to get rid of difficulties.
Burberry is “innovative” to come up with a “that is to see that buy” model, that is, by strengthening the supply chain management to reduce the show show and retail market time difference, the product becomes more timely, no season, personalized , Closer to the distance between the consumer and the brand. As for the effect of how the current view is still unknown.