Burberry shuts down Guangzhou foundry's 63 stores in Huamen to increase to 100 in the future

At the end of last month, Burberry's foundry in Guangzhou announced the closure because workers’ working hours and work environment standards failed to meet the standards. Relevant person of Burberry responded that the closure of this factory will not affect Burberry's sales business in China. It is only one of Burberry's many factories in China.

Although this matter belongs to Burberry's internal affairs, it has become a fact that luxury goods have not been sold well in China this year. A report issued by Bain & Co. and the Italian Luxury Goods Association on the 15th of this month pointed out that as a luxury growth engine, China has caused consumers to cut luxury spending due to a variety of reasons. Bain's partner in Milan D Picio expects that China's slowdown in demand for luxury goods will continue into the first quarter of 2013.

The reporter learned from the two Burberry stores located at the Friendship Store and Taikoo Hui, and the two stores’ sales remained basically stable in the first two months. Guangzhou Lambert Shopping Mall mentioned that the increase in sales of luxury goods is not as fast as in previous years. The analysis pointed out that the ease of outbound travel and the spread at home and abroad have caused more residents to purchase luxury goods in Europe and America.

It is worth noting that Burberry's chief financial officer, Stacey Cartwright, made it clear that Chinese consumers still have a strong willingness to spend. Burberry has opened 63 stores in China and plans to expand it to 100 in the future.