Since Chanel first broke the tradition of “regular price increase” in China every year, a lot of luxury brands have followed suit, aiming to stimulate consumption in China and enhance brand performance. And recently, the luxury brand Burberry has also begun to do it. Thus, this never fall fashion of luxury brand in many people chasing catch up from behind, had to start to concentrate on adjust its brand development strategy, and the price seems to be a good choice to consolidate its luxury brand positioning.
According to statistics, at the end of September this year in the first half of the fiscal year, Burberry operating profit compared with the same period last year rose 24% to $127 million, sales increased 9% to 126 million pounds, but still less than expected data. The company’s new chief executive Marco Gobbetti said that although Burberry is currently in the global luxury industry can gain a foothold, but still hope to improve the overall brand positioning to more high-end luxury brands, by raising the price positioning to promote product sales growth has become a necessary option.
In addition to rising prices, according to Burberry CEO Marco Gobbetti, consumers are gradually differentiated between luxury goods and mass market. Therefore, Burberry needs to drive growth through high prices, and the mass market can attract entry-level customers at low prices. Besides, Burberry has made great efforts in products, including the design of more unique styles. Besides the two main fashion seasons in February and September, it shows more new designs through other fashion shows.