Burberry burned goods for 28 million pounds
This was done to protect the brand.
The British manufacturer of clothing and accessories luxury brand Burberry last year burned unsold products at 28.6 million pounds sterling. This was done to protect the brand. The cost of destroyed goods in the previous financial year was 6% more than a year earlier.
Manufacturers of fashionable clothes destroy the remaining uncleared items for it is not to be stolen and sold at the price below the market.
Burberry reported that burning of goods was done in an environmentally safe manner. At the same time, the company noted that last year was unusual, because after signing a deal with an American company Coty theyt had to destroy a lot of perfume.
Coty will prepare a new line of perfume, so Burberry had to destroy their old products by 10 million pounds.
Now Burberry is in the process of updating its product line. This process involves the promotion of the brand to the higher level, the closure of stores located outside the “strategic” points, and the opening of the “Center for Advanced Technologies”, which is already engaged in the production of luxury leather products.
The company also cut costs, which led to an increase in profits. In the fiscal year ended March 31, Burberry’s profit grew 5% which is 413 million pounds. The sales volume is almost unchanged and stays 2.7 billion pounds.