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Burning what she loves to others, Burberry is no exception in the world of luxury.
Theoretical of "creative destruction", the liberal economist Joseph Schumpeter has a new adept: the British luxury sign Burberry. Last year, she destroyed clothes and cosmetics worth more than 28 million pounds (about 31 million euros), according to her annual report.
The reason for such a burnout? The tartan brand intends to protect its brand. A strategy that is worth a few sacrifices.
These 28 million pounds _ an increase of 50% compared to 2015 _ equivalent in value to the disappearance in smoke of about 20,000 trenches – the iconic product of the brand. Of this total, some 10 million pounds (11 million euros) of cosmetics and perfumes were destroyed, an increase justified by the group by the sale of its beauty license to the American group Coty.
By burning what it makes others adore, Burberry is no exception in the world of luxury. The destruction of products is flourishing among both brands and major distributors, who see it as a way of protecting intellectual property and preventing counterfeiting by destroying their inventories instead of selling them at a low price.
Destruction " responsible "
Criticized, the company replies that it works" with specialized companies that are able to recover energy from the operation "of destruction. "When we have to destroy products, we do it responsibly and we continue to look for ways to reduce and upgrade our waste," a spokesman told AFP.
Tim Farron, the environment of the opposition party of the British Liberal Democrats, described the practice of the group as "scandalous". According to him, "recycling is much better for the environment than burning to generate energy."
In its fiscal 2017-2018 Burberry has, on the backdrop of sluggish sales, recorded a slight increase in its profit adjusted operating margin (+ 2%, to 467 million pounds, or 533 million euros). Anemia that should last two more years. Under the leadership of his new boss, Marco Gobbetti, the brand is looking for a parade. Objective: to strengthen its position in the very high-end while at the same time carrying out an overhaul of its stores
Jean-Michel Gradt
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