Just suffered a “profit warning” storm impact British fashion brand Burberry outlet , and recently announced the closure of one of its factories in Guangzhou, mainly due to the plant workers working hours seriously exceed industry standards. Affected by the slowdown in China’s economy, sales of the brand in China, has also fallen.
Guangzhou employee has been on strike to protest
Foundry announced the closure of Burberry is located in Guangzhou, the Daily Reporter learned yesterday, the main reason is due to the workers’ working hours and work environment standards are not met. Related to informed sources, the plant’s employees had ever held a four-day strike to protest the wage is too low, work long hours squeezing labor, and verbal abuse by management.
Burberry brand in June 2010, the British moral Trade Organization, and to comply with the organization’s employees work time should not exceed 48 hours per week. “According to the survey, the plant employees every day are working more than 11 hours, six days a week to work, the equivalent of 66 hours / week far exceeds the standard.” The source said.
“We apologize, we really are still many problems need to improve.” The responsibility of the Ministry of the Burberry brand company yesterday admitted Reply reporters mail, the factory there is a breach in the production environment and the management system brand has consistently adhered to Code of Ethics.
“However, this Chinese factory’s closed, is not interested in Burberry is China’s sales of business caused by the impact.” Burberry brand companies market Ministry official yesterday at the same time pointed out, “It is only just Burberry many in China foundries one, and last batch plant for the production of Burberry was delivered in July. “In addition, for a reporter’s question,” shut down the factory in China, you still appear with Burberry sales in China have fallen sharply on this issue The company did not reply to a message to reporters to give a reply.
Sales growth fell this year
In fact, due to the recent annual sales growing, China is deemed to business growth engine of the Burberry brand. However, since the first quarter of this year, Burberry in China Mainland market performance is a downward trend. According to the first quarter of 2012 showed a profit of Burberry Group, the Asia-Pacific region, the company’s first quarter China mainly sales growth fell to 16% from 67% in the same period last year. The group recently released a statement, also known under the name of more than one year store sales for the third quarter of this year an increase of zero at the end of the 10 weeks ended September 8, far below the year ended June 30 the end of the day, a 6% same-store sales in the second quarter growth.
“This year, Burberry slowdown in sales growth slowdown and domestic economic conditions have a great relationship.” Zhou Ting, a luxury research expert, wealth Quality Research Institute, told reporters yesterday that consumer confidence has declined, and the other One reason is that China’s luxury consumption market has developed nearly 10 years, frequently stable consumers to buy luxury goods in the first-tier cities, there are a mature and rational growth process.
According to the survey, in 2012, about 30% of China’s richest buy luxury goods spending will be reduced, the average annual salary of 160,000 -18 million middle class spending even more obvious in this regard. “In addition, as China’s economy slipped in August of this year, China’s fiscal revenue growth as low as 4.2%, the central fiscal revenue is a rare negative growth, which are forcing our government to some extent limit public expenditure. Coupled with China in June this year the first time the introduction of public funds shall not purchase luxury provisions of the Ordinance, the demand for luxury goods such as gold, jewelry and high-end watches partially suppress. “relevant industry sources said.
Nevertheless, Burberry outlet sale has remained optimistic about the market in China. Burberry CFO Stacey – Cartwright has made it clear that “China’s various economic indicators worsened, but Chinese consumers still have a strong desire to consume, the Chinese market is still huge business opportunities.” It is reported that Burberry has been in to open 63 stores in China and plans to expand to 100.