Burberry burned €32 million worth of stock

[beanaseireann]

Is this for real?
Reported in the news.
What a waste of resources making goods in the first place.
Apparently it is a fashion industry wide response to over production.
Appalling.

I always remember when I was on holiday somewhere (cannot remember where). I was in a queue for something and there was a father and son behind me. They went on and on about the son's designer cap. It was a Burberry and he was very chavvy. Not sure if he thought I would be impressed? Er...nope. Looked crappy.

They have a huge outlet store at Bicester Village where they discount. I cannot understand why their production doesn’t meet demand more closely. I think they do make cheaper lines for BV but they have tarnished their image. The Times says £90 million. I suppose there was just too much stock for their discount outlet.

I’m an owner of 2 Macs both bought a very long time ago before anyone used the term Chav. It’s very difficult to stop people buying a brand that you would rather not be associated with but they played into it by using their check on anything and everything. I just hope they learn from this.

it's not 32MEuros though really is it - it's 32M at retail prices - which of course are extra inflated to deal with the idea that they'll be burning everything that they don't sell, so in actual cost to make, plus costs to transport, plus wastage, it's an awful lot less than 32M.

Probably it would be better to quantify it by weight than 'value'

I abhor the waste, like any sensible person, but as a business that is built on "prestige", Burberry can't afford to have thousands of unsold items devaluing the brand they have (re)built at vast cost in advertising being sold on EBay or clogging TKMaxx. Hence they make a limited range of sizes, destroy seconds, and control distribution as hard as possible to maintain their exclusivity.

I think it’s very bad planning as well. They must have historical sales numbers to rely on when going into production. Over producing goods that won’t sell is their fault entirely.