Burberry Is More Than Just Regain Control Of The US Market.

In order to regain control and enhance brand image, Burberry's response is to reduce the launch of goods in department stores.

Burberry terminated three men's clothing contracts with Nordstrom department store, and also stopped sales of some product lines in Saks Fifth Avenue and Bloomingdale 's.

If anything will affect people's perception of whether a brand is advanced, the discount is sure to be on the list.

The more frequent and fiercely discounted, the less likely the brand is "advanced".

Burberry also realized this, and now it intends to reverse the situation.

In the highly competitive American market, Burberry decided to enhance its brand image, starting with the termination of inappropriate partnership with department stores.

In the US market,

The problem is the lack of control over the brand.

In the 2015 fiscal year, 35% of Burberry's revenue in the United States came from wholesaler channels, compared with 26% in the global market.

The result of relying too much on wholesalers such as department stores is that these channels like to increase sales through price reduction, regardless of the high-end positioning of the brand.

In order to regain control and enhance brand image, Burberry's response is to reduce the launch of goods in department stores.

Burberry terminated three men's clothing contracts with Nordstrom department store, and also stopped sales of some product lines in Saks Fifth Avenue and Bloomingdale 's.

At a conference call last year, Burberry CFO

He said that the move is part of "upgrading the brand strategy" and keeping away from the "business not suited to the brand".

Unlike previously encouraged department stores to increase wholesale orders, Burberry

Vice president of Fay Dodds, 4, said that their strategy is "let department stores buy goods that they consider capable of selling at full price, rather than having to sell at last."

Not only Burberry, Prada, Gucci's parent company Kai Yun group has adopted a similar strategy.

Prada CFO Donatello Galli said their main purpose is to narrow the gap between the display of goods between brands and wholesalers in the US market.

Burberry also plans to reorganize the 60 market stores in the US market to a better location to attract consumers.

The company has also strengthened its private customer team in Miami, Dallas, San Francisco and Boston, retaining key customers through providing styling consultancy services and fostering customer relationships.

"We are ready to protect the brand's long-term development with the current low growth."

Fairweather said.

As a result, the pressure faced by Burberry CEO Christopher Bailey is to seek growth in the US market to offset the sharp drop in sales in Hongkong.

Control channel became the first step.

Burberry has just had a heavy year.

Burberry's share price fell 27% last year, the biggest decline since 2008.

The decline of Hongkong's shopping paradise has caused a great blow to Burberry. In Hongkong, Burberry has 14 stores, more than most of its competitors. Now it is a burden.