China Continues to Drive Burberry’s Sales in the Latest Fiscal Year

Burberry released its preliminary results for the fiscal year 2017, which ended on March 31, showing that China continues to be a source of strength for the British luxury powerhouse. The fashion house is preparing for the arrival of a new chief executive, former Céline CEO Marco Gobbetti, who will take up his post in July. He has already been heading up Burberry’s Asia-Pacific business during the transition. In mainland China, sales growth accelerated in the last quarter, rising to double-digit percentages from single digits earlier in the year. Meanwhile, Hong Kong continued to see negative growth for the full year due to weaker footfall in retail stores. Burberry said it had enjoyed “exceptional” performance in the UK. Sales were up by nearly 40 percent in the last six-month period. But the source of this uplift may likely be Chinese shoppers. According to the Guardian, 70 percent of consumers that visit the brand’s UK flagship outlet store are from China, and many of them are taking advantage of the weakness of the pound. Burberry is leading the digital effort among its rivals in China, according to a report by ContactLab and investment company Exane BNP Paribas (as previously reported by Jing Daily). The British luxury company has not only had its website newly designed, but it also launched a mobile app. It also worked with Chinese celebrities to help localize the brand. Burberry’s collaboration with Chinese actor Kris Wu was an exceptional success—his first runway show in London attracted a lot of attention from young fans. When Wu wore Burberry's iconic trench coat, it rejuvenated the brand's image in the eyes of China's youth.

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China Continues to Drive Burberry’s Sales in the Latest Fiscal Year