This Thursday, the British luxury brand Burberry Replica posted third-quarter earnings, said that in September 2015 to 12 months of operating conditions. The situation looks like a good little, this three-month retail sales in stores increased 1% (there is a large luxury goods sales from the wholesale channel); you know, in June 2015 to September in the second quarter, quarterly sales of Burberry (say, compared with the first quarter of 2015) fell 4%, even luxury brands are not too good morals, the situation is somewhat bleak.
By region, sales in Europe, Italy, Spain, have gained more than 20% growth in the quarter, mainly due to the purchase of contribution tourists. The situation in France and the UK are not satisfactory: France is easy to understand, by the November terrorist attacks; while the share of sales accounted for EMEIA (Europe, Middle East, India and Africa) more than 1/3 of the UK market by from China and the Middle East the impact of reducing the number of tourists, the situation becomes challenging.
In the US market, domestic consumption is some recovery, but affected by a stronger dollar, reduced tourism and consumption. Of course, since Burberry has not published separately in the earnings growth over the same period sales in mainland China, we can not assert the same period sales of the Chinese mainland market will certainly not increase; in other words, we can not say that, certainly not the Chinese people in their own the door to buy more. However, Burberry brand as a whole is facing a great challenge, but it is an indisputable fact. Because Chinese consumers Burberry sales contributed 30% -40%, a serious look at the real needs of China’s luxury market is always correct.
In Asian markets, Hong Kong and Macau markets worst, by reducing the flow of people (it is, more and more mainland tourists less) influence, and sales compared to the same period last year dropped by more than 20%, while the Japanese market over the same period sales rose about 50 percent (yes, the number of mainland passengers increase), while the situation in mainland China do? Earnings in that quarter to restore growth in sales here, then analysts applauded, ah Chinese people finally started in their own house to buy more luxury goods friends. Driven by these positive factors, Burberry shares rose.
A source tells us the luxury retail industry, starting in October 2015, sales Burberry replica handbags uk indeed return to growth, but that it was “Seasonal” and in Burberry, “what is the strength of thick coats scarves ah ah , trench coat, sell year after year, this year is the scarf sell crazy! “this argument has also been confirmed that a luxury buyers,” in the autumn and winter, is not the best selling windbreaker, but horns cashmere coats and scarves. ”
So, you see, the so-called quarterly sales in China market (in the third quarter vs. the second quarter) in the recovery, largely driven by the popular seasonal products. Burberry’s retail market in mainland China resumed growth in retail stores as well as global sales increased 1%, is really illustrate Burberry brand in the overall improvement in it? This is very doubtful. Burberry’s own earnings reports is a case in point, because the earnings plainly written, Burberry in global sales with the same period of the previous year’s quarter (third quarter of 2015 vs.2014) flat, coats scarves indeed It sold well, but there are better than in the past to sell it? and! No! Have!
Burberry years in marketing is really very hard, and heat embrace of Internet innovation, just recently launched Burberry Apple’s Apple TV is still on an app, live coverage of the 2016 men’s winter show, before also became the first Apple landfall streaming music service Apple Music brand (ha ha, I think it must now former CEO Burberry jump to Apple about, love na); there are a series of previous Burberry Kiss extensive use of new media advertising, They have become an excellent marketing case. Moreover, Burberry still adhere to the former CEO to go younger line, this time, in order to express the sincerity of the Chinese fans, also invited representatives of meat Wu Yifan walked men’s winter show.
Do not! Too! Then good marketing, in products, Burberry really no bright spot. Classic pattern and can certainly maintain sustained appeal, but sometimes become a stumbling block to stifle innovation. I can understand Burberry hope through innovative marketing tools, to attract young people to buy their products, but the young (especially young Chinese) also want innovative, fun new products, rather than the previous generation and wearing the same style style, look up product Meng Dior, products are increasingly sprouting Fendi Replica, the second element together LV, you can understand that fact.
This is not the whole story. In addition to the overall brand innovation issues, Burberry on the service, but also very need to be adjusted. According to the report Bain, the current distribution channels still occupy the dominant luxury sales, accounting for about 66%, but the increase in the proportion of retail channels, many luxury brands are trying to increase the proportion of sales outlets.
but! A European luxury buyers told us that in Burberry Replica Handbags, ordering wholesalers Unlike other luxury brands have a limit on the amount and style that defines the degree of freedom greatly, so mean domestic electricity business sites and individual buyers shop can wholesale to Burberry goods, they are usually priced lower than domestic outlets, outlets that way it will affect the domestic business. By comparison, other brands, “Distributor control done well, so electricity suppliers and buyers can shop goods into little outlets business will get better.”