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Burberry burns bags, clothes and perfume worth millions | Burberry burns bags, clothes and perfume worth millions |
(35 minutes later) | |
Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth £28.6m last year to protect its brand. | Burberry, the upmarket British fashion label, destroyed unsold clothes, accessories and perfume worth £28.6m last year to protect its brand. |
It takes the total value of goods it has destroyed over the past five years to more than £90m. | |
Fashion firms including Burberry destroy unwanted items to prevent them being stolen or sold cheaply. | Fashion firms including Burberry destroy unwanted items to prevent them being stolen or sold cheaply. |
Burberry said that the energy generated from burning its products was captured, making it environmentally friendly. | |
"Burberry has careful processes in place to minimise the amount of excess stock we produce. On the occasions when disposal of products is necessary, we do so in a responsible manner and we continue to seek ways to reduce and revalue our waste," a spokesperson for the company said. | |
The FTSE 100 company said last year was unusual as it had to destroy a large amount of perfume after signing a new deal with US firm Coty. | The FTSE 100 company said last year was unusual as it had to destroy a large amount of perfume after signing a new deal with US firm Coty. |
As Coty would be making new stock, Burberry had to dispose of £10m worth of old products - largely perfume. | As Coty would be making new stock, Burberry had to dispose of £10m worth of old products - largely perfume. |
Over the past few years, Burberry has been working hard to make its brand exclusive again after it went through a phase when counterfeiters were "sticking the Burberry check on anything they could", said Maria Malone, principal lecturer on the fashion business at Manchester Metropolitan University. | Over the past few years, Burberry has been working hard to make its brand exclusive again after it went through a phase when counterfeiters were "sticking the Burberry check on anything they could", said Maria Malone, principal lecturer on the fashion business at Manchester Metropolitan University. |
Destroying unwanted products is part of that process, she said. | Destroying unwanted products is part of that process, she said. |
"The reason they are doing this is so that the market is not flooded with discounts," Ms Malone said. | "The reason they are doing this is so that the market is not flooded with discounts," Ms Malone said. |
"They don't want Burberry products to get into the hands of anyone who can sell them at a discount and devalue the brand." | "They don't want Burberry products to get into the hands of anyone who can sell them at a discount and devalue the brand." |
Tim Jackson, head of the British School of Fashion at the Glasgow Caledonian University in London, said luxury fashion firms such as Burberry faced a "paradox". | Tim Jackson, head of the British School of Fashion at the Glasgow Caledonian University in London, said luxury fashion firms such as Burberry faced a "paradox". |
They have to grow at the risk of "diluting their identity and creating excess stock", he said. | They have to grow at the risk of "diluting their identity and creating excess stock", he said. |
"There's no way they are ever going to solve this problem." | "There's no way they are ever going to solve this problem." |
Burberry is not the only company having to deal with a surplus of luxury goods. | |
Richemont, which owns the Cartier and Montblanc brands, has had to buy back €480m (£430m) worth of watches over the last two years. | |
Analysts say that some parts of those watches would be recycled but much would be thrown away. | |
Move upmarket | |
Last November, Burberry announced a revamp intended to "re-energise" its products over several years. | Last November, Burberry announced a revamp intended to "re-energise" its products over several years. |
That includes taking its brand further upmarket, closing stores that are not in "strategic" locations and creating a "centre of excellence" for luxury leather goods. | That includes taking its brand further upmarket, closing stores that are not in "strategic" locations and creating a "centre of excellence" for luxury leather goods. |
It has also cut costs, which has helped boost profits. | It has also cut costs, which has helped boost profits. |
In Burberry's most recent financial year to 31 March, the company reported a 5% rise in profit to £413m, with sales little changed at £2.7bn. | In Burberry's most recent financial year to 31 March, the company reported a 5% rise in profit to £413m, with sales little changed at £2.7bn. |