Burberry Going Down

[kes]

Gus announced it would demerge its 65 per cent stake in fashion house Burberry on December 13, revealing an eight per cent fall in half-year profits at the same time.

Power to the Skally

 

[russ]

most buisnesses get into trouble when they expand to quickly.

Even large companies can fall into the trap of getting too greedy.
Burberrey may have posted huge profits for a year or two but only by ruining the cachet of the brand.

shame. ha ha

 

[N8]

Burberry is only not doing well in the UK because of the chav backlash/how the brand is percievied now. They're still doing very well in all other markets.

 

[silvia]

Burberry is only not doing well in the UK because of the chav backlash/how the brand is percievied now. They're still doing very well in all other markets.

Burberry in Spain is very posh, they own a big store in one of the most expensives corners in BCN and their customers are usually uptown girls and women

 

[naddyz]

Most of Burberrys core customers are still there, old women and professionals who understand that if you buy something without the signature check on it it's still going to be fashionable (like their trench coats etc)

what they've lost in the UK are the people who buy one or two designer items a year, such as a handbag or the perfume who are put off by the association with chav. Since luxury goods companies make a tonne of money off these types it's a massive loss.

 

[N8]

Burberry have massively reduced as well the amount of items with the check pattern. Three years ago it was on a fifth of all products. By 2004 it was on less that 5%.

Oh, and GUS announced the demerge of Burberry in May this year as part of its overall strategy to break itself up.

 

[Morbyd]

Burberry is only not doing well in the UK because of the chav backlash/how the brand is percievied now. They're still doing very well in all other markets.

Burberry in Spain is very posh, they own a big store in one of the most expensives corners in BCN and their customers are usually uptown girls and women

Same here. The Moscow store is in one of the most upscale shopping centers in town (GUM, located right on Red Sq)

 

[kes]

Oh, and GUS announced the demerge of Burberry in May this year as part of its overall strategy to break itself up.

Really? I announced it today as part of my overall strategy to rip the piss

 

[x-amount]

Burberry's been making millions for years still after it was declared "chav".

Didn't GUS buy it whilst it was a well established chav icon?

It still is (and will hard not to be) one of the most established premium brands in modern fashion.

And as Silv said, it's very highly revered in other parts of europe, and their raincoats and outdoorwear (but then you're talking about coats that cost 6-700 squid) get referred to other by staff of other "houses" as pretty much as good as it gets.

(and most of the check stuff you see is fake anyway)