Burberry Days Tough Chinese Buyers Account For 40% Of Sales

It is reported that despite the high hopes for the e-commerce platform, it is a big problem for Alibaba and other platforms to sell fake products for brands seeking to gain control over online sales.

Boboli's official flagship store on Alibaba's Tmall platform is partly due to a better grasp of the platform.

The sale of parallel imports.

However, the industry believes that when Bo Boli is increasingly catering to the younger consumer groups in the way of publicity and promotion, it does not really bring consumers the new design that is bright and young, which is also an important reason for the loss of consumers.

In 2010, in the foreign media coverage, it also printed the title of "Boboli to thank Chinese consumers". Now, thanks has become a nightmare.

The market for British luxury brands has been heavily reliant in the past.

This dependence on Chinese consumers has brought glory to the brand, and has also been hit hard by the weakening demand of Chinese consumers.

Data show that Chinese buyers account for 40% of the group's sales, which is higher than other luxury goods companies.

Not only that, boblet is hit by the recession of tourism, especially in Hongkong.

Plummet.

Carol Phil Weise, the departing chief financial officer of the group, revealed that Hongkong is a big worry for the entire luxury industry. Carol Fairweather

The latest report in 2016 showed that sales of Boboli in the Hongkong market in China fell by two digits, while sales in inland China were roughly the same as last year.

"How to deal with the problems of the Chinese market and Chinese consumers is a very difficult challenge for some industry veterans," said Tang Xiaotang, founder of No Agency.

Some people in the fashion industry think that the recent fashion series of blobury lacks originality, and the overall business atmosphere is too strong.

In the US market, boboley's problem is the lack of control over brands.

In the 2015 fiscal year, 35% of Burberry's revenue in the United States came from wholesalers, compared with 26% in the global market.

The result of relying too much on wholesalers such as department stores is that these channels like to increase sales through price reduction, regardless of the high-end positioning of the brand.

At the same time, Britain's departure from Europe has led to fluctuations in the exchange rate market, and this has also had a negative impact on the company.

Because of the fact that Boboli 90% is sold outside the UK, there is tremendous pressure in overseas markets.

In the days before Britain's departure from Europe, the Boboli group also sent an open letter to its staff, implying not to vote against Europe.

In fact, the UK has temporarily had a positive impact on the luxury industry in Britain. At present, the pound's exchange rate has reached a new low of 31 years, which has stimulated sales and profits and pushed up procurement costs.

In July 15, 2016, Boboli said the uncertainty in the UK affected the development of the company and decided to shelve its plan to build 50 million pounds in Liz. The company plans to remain unchanged and will carry out the plan with great care in the future.

In the face of the decline, bolberry will continue to reform the company to cope with the challenges of the external economic environment. In addition to adjusting the management of the company, it will continue to reduce operating costs by at least 100 million pounds and continue to lay off sales positions.

In addition, a 150 million share buyback plan will be launched.

In the US market, in order to enhance the image of high-end brand, Boboli will also reduce the launch of goods in department stores, and even terminate contracts with some department stores.

For the increasingly picky Chinese consumers, Boboli is also trying to make electronic commerce.

Besides offering official Wanfu store on Tmall, marketing activities are also carried out on social media such as WeChat, micro-blog and so on.