How to keep the value of goods stable, maybe the relationship between supply and demand is the key. In the Great Depression of the last century, in order to maintain the price of milk, American capitalists would rather pour milk into the Mississippi River, and not leave it to the poor people who are hungry and thin. Unexpectedly, 90 years later, the British luxury brand Burberry is still repeating a similar story.
The recent earnings report of Burberry shows that in the 2018 fiscal year, the company of brand destroyed a total of more than 28.6 million pounds of inventory. According to the statistics of British Times, Burberry has destroyed more than 90 million pounds of goods in the past five years. Is the capital operation or the decision-making mistake due to this condition?
According to the report of the PETA, some animal skin products are also included in the clothing burned by Burberry. This behavior makes environmentalists criticize Burberry as the “shameless approach.” This has also led to criticism of shareholders and consumers who are concerned about waste and environmental impact.
There are many reasons for destroying goods. Why did Burberry destroy nearly 30 million pounds of stock? Maybe the following words can give the key answer to this question.
British retail media Retail Gazette reported that Burberry may be the company’s own performance– Because if the goods are destroyed, then Burberry can get the tax refund for those imported goods that have not yet been used.
In an interview with the BBC, Maria Malone, the chief lecturer of the fashion industry at Manchester Metropolitan University, said that destroying excess inventory is part of Burberry’s branding process.
Tim Jackson, Dean of the School of Fashion at Caledonian University in Glasgow, also pointed out in an interview with the BBC. Burberry is facing a dilemma — in order to satisfy shareholders, the company must continue to expand, even if it has the potential to affect the company’s brand – excess inventory.
Even so, consumer obsessed with the brand has not reduced. After all, the design, style, and style of brand are really fashionable. However, in the face of such awkward situation, we still need to find a balance. Going to the online store, there will always be unexpected gains. Compared to the fashion, I prefer watch – after all, I can match my wearing with this accessory.
Especially this online classic House Check watch. The Burberry Functional Practical strap is a sleek leather-stitched House Check with a round case and coin-side bezel for a casual vintage style inspired by the Burberry military tradition. The price is also very fine to the people.
Burberry Functional white gold watch with House Check splicing leather strap