Burberry lags colleagues do not pay as luxury buyers for tiles

  During a tour of businesses in London Bond Street fashion, Shona Findlay peered into the windows of Burberry Group Plc (BRBY) 's flagship store, but in the end we paid ￡ 1,000 ($ 1,610) for a Louis Vuitton handbag.

"There are some beautiful things, but this is not a brand that I want," the 23-year Singapore suspended sales Burberry.

House in the UK most luxurious customer wins in the first half of the last decade. By plastering his camel, red and black baseball control dog collars Now that attempts Burberry high-end products such as books to move 195 - to excite crocodile clutches book is not the biggest donor - T-shirts, dresses 1795, floral prints and books 6000th

"With other luxury brands such as Chanel, Prada, Louis Vuitton, Gucci, etc, what you buy is a real point of difference," Jane Kellock Stylus researchers said in London. Under Burberry ", the series just does not justify the price."

Burberry, the Monday shows his Spring / Summer 2013 collection airstrip in the British capital, said this week that the profit for the year to end of March will disappoint investors. The company said same-store sales declined in recent weeks, sending shares and the lowest deletion of ￡ 1.27 billion in market value.
Spending Slump

To say the companies have jointly responsible for his misfortune on a slump in industry-wide spending store visits decreased since the end of August. Burberry, but may be an outlier in an industry that has grown 25 percent since 2009, according to Bain & Co., Burberry revenue could analyst expectations for the last two quarters, while rivals such as justice Hermes International (RMS) SCA and Prada SpA easily surpassed.

Move to its upscale image and refer customers goods more expensive, the 156-year-old company has its moat best handbags and the United States omitted this year. Chief Financial Officer Stacey Cartwright said the move helped "disproportionate" to the slowdown in business as economies around the world cool.
"Affordable Luxury"

Former CEO Rose Marie Bravo, who joined Saks Fifth Avenue in 1997, has transformed the British manufacturer of raincoats and umbrellas expanded its range and holding fashion shows. There, the demand for the Burberry plaid by trying new colors rose and put the design on dozens of products. Congratulations to price somewhat lower than that of its competitors, synchronization Burberry "affordable luxury." We show, Bravo increased earnings more than quadrupled in 2005.

The change has taken its toll on the brand that fit a reputation for attracting young British football fans Burberry has designed baseball caps with pressure tracksuits. In 2004 prohibits pubs and clubs across the country Customers attracted the label. Congratulations limited use pattern and joined in July 2006.

His successor, the former Liz Claiborne Inc. executive Angela Ahrendts, high prices, pushed into new markets such as Africa, and expanded non-apparel company Burberry. Ahrendts also led the luxury industry in the digital age, live streaming Burberry fashion show on their website.

Shares more than doubled since the appointment of Ahrendts, more than 59 percent jump from LVMH Mo?t Hennessy Louis Vuitton SA (MC) broth and the advance payment of 24 percent of Gucci-owner PPR (PP) SA that time.
Too expensive

Burberry now faces a dilemma. Many consumers that make the love can not pay the full price for the company coats, clothes and bags. Others, such as Findlay could afford it, but are not sufficiently moved by it, their money is.

"This is a really cool brand," said Iris Jiang, a 23-year-old student from China. "It's too expensive for me." Jiang had recently spent ￡ 80 on a sweater for her mother to a discount Burberry.

Uche Okonkwo, CEO of the Paris-based adviser, Luxe Corp, said it is understandable that the sales tracking Burberry: Getting rid of so-called luxury mass for superior products inevitably leads to net business customers.

"The change in brand positioning usually adapt a couple of seasons for the consumer," said Okonkwo, who is moving to expand eventually help predict profit margins. "You can not sell anything to anyone."

However, the benefit of Burberry suffer in the short term, if the company is forced to delete inventory of lower prices.

"People expect things to go on distance usually," said Sue Evans, senior editor at fashion forecaster WGSN in London. "There must be a time when the customer wait Burberry that come buy. Take apart a discount, instead of paying full price at the Regent Street."