Buying it

Luxury giant Burberry (Burberry) this year to continue to slump. In 2016, according to data, burberry full-year profits continue to fall, the group also announced that profits in 2017 will be expected to its lowest level.

The British luxury brands in the double-breasted trench coats and renowned cashmere scarf, but also spare no effort to circle powder in the whole world, in recent years, efforts in the direction of the young and fashionable transformation.

However, even in 2016, Beckham's eldest son as a photographer, invite wu queer in T stage, while the burberry could be saved no bad on the financial data.

Burberry chairman Mr Peace (John Peace), said now luxury environment worse, burberry is locked.

Market value by 1/5

In July 2016, burberry announced that it will replace concurrently chief creative officer as CEO Christopher Bailey (Christopher Bailey), by the French Celine (Celine)), the CEO of Marco's Betty (Marco Gobbetti) took over.

Bailey does not satisfactory performance during his tenure of office. Since taking office in 2014, he led the burberry, in a short span of two years, the company's shares have fallen by 22%, the equivalent of wiping out nearly 1/5.

As early as in last year's performance is bad, the CEO has announced a series of cost-cutting measures, including cuts in 30 million bonuses, stock incentive and 20 million travel and drive (such as welfare, he himself was a 75% pay cut in June of this year.

Released in November 2015, burberry group business decision plan, decided to unified product line and the construction of a new trench coat factory. All product categories will be unified into a single "Burberry" brand, since the summer of 2016.

However, cost reduction and product adjustment did not increase profits. Results showed that at the end of the as of June 30, 2016 in the first quarter, burberry in the first quarter same-store sales fell 3%. Because sales decline significantly, the luxury brands have to future performance warning: expected at the end of September 30, half year, its wholesale revenues last year decreased by 10% year-on-year.

Burberry said, pele will serve as the President of the new jobs, and keep the position of the chief creative officer. The chief executive of French luxury goods company celine's Betty next year, will serve as the chief executive of burberry. As part of the high-level personnel changes, burberry announced, chief financial officer carol? Fairweather (Carol Fairweather) will leave the company, "the pursuit of new opportunities.

"We want to by more suitable person to lead the burberry through the current difficulty." Chairman, who said, in fact, at least in the past six months, burberry has been looking for a new CEO.

According to local media reports, investors welcomed the personnel changes, says appointed pele became chief executive and chief creative officer has failed the test. After the announcement, burberry's shares rose 4%, to 12.11 pounds. Weak ", the company's financial performance, clear the need for change, "a stake in the top 20 investors said.

Clearly, investors of bailey's ability on a global scale to promote the British brand, lost confidence.

"Christopher Bailey (Christopher Bailey) took over two years ago is not a good time, luxury winter begins from the end of 2012," No Agency founder Tang Xiaotang in an interview with the media, "it is well known in the past two years China's anti-corruption began to influence the market, but the current economic and the problem of the stock market is more serious, the luxury market is entering winter."

Chinese buyers accounted for 40% of sales

In 2010, the foreign media reports, also impressively printing a "burberry thanks to Chinese consumers", the title of today, thanks to turned into a nightmare.

The British luxury brand in the market in the past relies heavily on the Chinese market and Chinese consumers, this dependence has bring glory to the brand, also met with China's consumer demand.

Data showed that Chinese buyers accounted for 40% of the group sales, this ratio is higher than other luxury goods companies. Not only that, burberry impact of tourism decline, especially in Hong Kong, burberry sales plummeted.

The group's outgoing chief financial officer Carol, Fairweather (Carol Fairweather) revealed that Hong Kong is a menace to the luxury goods industry.

In 2016, according to the latest results burberry double-digit falls in sales in Hong Kong market in China, and China's inland sales is roughly flat compared with last year.

"How to deal with the Chinese market and Chinese consumers to some industry veterans are very tough challenge," said No Tang Xiaotang, founder of the Agency.

Fashion industry some people think that the recent fashion burberry series, lack of originality, the overall commercial flavor too strong.

In the United States market, burberry problem is the insufficient control of the brand. 2015 fiscal year, Burberry, in 35% of the revenue came from wholesaler channel, while the proportion was only 26% in the global market. Rely too much on department store the wholesaler as a result, these channels like depreciate sales promotion to boost sales, regardless of the high-end positioning of the brand.

At the same time, the British European, lead to market exchange rate volatility, also brought negative influence to the company.

By fellow bailey at 90% of all sales in countries outside the UK, so the pressure in the overseas market at present.

Take off a few days ago, the UK burberry group also sent a letter to employees, and take off the suggested not to vote.

In fact, the British European off temporarily has positive influence on the British luxury goods industry is, at present to sterling exchange rate hit a 31-year low, side to stimulate the sales and profits, at the same time push the purchasing cost.

On July 15, 2016, burberry, said Britain to take off the European uncertainty influence the development company, decided to put its investment plans of 50 million pounds in Leeds, the company plans to target unchanged, the future will be "very cautious" to carry out the plan.

Monitoring on Tmall fakes

A downturn, burberry will continue to reform the company, meet the challenges of the external economic environment, the adjustment, in addition to the company's management will continue to reduce the operating costs at least 100 million pounds, continue to cut the sales job. In addition, will also start the £ 150 million stock repurchase plan.

In the American market, in order to improve the image of the brand high-end, burberry will also reduce in department store goods, even terminate the contract with some department store.

And for Chinese consumers increasingly picky, burberry is trying in e-commerce. In addition to open on Tmall official wanfu shop, also in WeChat weibo social media to carry out marketing activities, etc.

According to the Wall Street journal reported, although the electric business platform, but for trying to obtain control of online sales brand, alibaba platform, such as selling fake goods is a big problem. Burberry is on alibaba Tmall platform to open the official flagship store, on the part of the reason is that I wish to better grasp the platform burberry gray.

, however, the industry believes that when the burberry on promotion means to cater to the young consumer groups at the same time, it doesn't really bring consumers younger let a person shine at the moment of the new design, it is also important reason resulting in the loss of customers.

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