How can Burberry survive in China? - Shaun Rein

+Shaun Rein 

Fashion brand Burberry gets a new CEO, as Burberry's chief executive, Angela Ahrendts move to Apple in 2014. But retail analyst Shaun Rein is not sure current Chief Creative Officer Christopher Bailey would be the best choice to move business in China, he tells in HITC Business. 

HITC:

Shaun Rein, managing director of the China Market Research Group, said he was not convinced Bailey, a creative, could take on the task of ensuring Burberry grew in China. 

"The next nine months is going to critical for Burberry's long-term strength in China, its key long-term market, and I'm kind of concerned that they will have a CEO whose mind might not be on the long-term growth of China," he said... 

The Chinese government began a crackdown on luxury purchases and ostentatious extravagance last year by banning banquets and television and radio advertisement for expensive goods, which has started to hit the luxury sector. 

There was also concern on where Burberry was positioning itself in the luxury market. "They (Burberry) need to create a better brand potion: are they more luxurious than Louis Vuitton or do they compete more with Coach?," said China Market Research Group's Rein. 

"They're in that odd position in the middle, so they need some strategic help. " 

"I would go down-market, because consumers are either trading above Louis Vuitton - going for Bottega Veneta, Hermes and Chanel - or they're going much cheaper. So anything that is at the same position as Louis Vuitton doesn't do very well."

More in HITC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

China Weekly Hangout

Devastating pictures of tourist areas in the Golden week of October showed again that taking a holiday together with 428 million others is not always a good idea, even though a growing number might go abroad. The now adjusted system of Golden Week was introduced to encourage consumer spending – still high on the political agenda. But would a paid leave, where you can decide yourself your holidays, be a good alternative? Some love the ideal, others loath it. And what is worse, many Chinese would most likely not take their holidays, but try to cash in at the end of the year. That would cause consumer spending to drop. What would you do? How did you spend your holidays in October, and what would be a good alternative? Join the +China Weekly Hangout on Thursday 17 October, 10pm Beijing Time, 4pm CEST(Europe) and 10am EST (US/Canada). You can leave your remarks here, but during the event you can also ask questions and remarks using the Question tool at the event page here. At the event page you can also register for participation at the hangout. (You can read our initial announcement here.)

New visas
Ambiguity is the word Beijing-based lawyer +Gary Chodorow uses most when talking about the new visas in China, officially in place since September 1 on the +China Weekly Hangout early september. What to do with spouses, interns, people with F-visas and other visitors who are not allowed to work. Moderation by +Fons Tuinstra of the China Speakers Bureau.

Related articles

• Apple: no longer cool in China - Shaun Rein
• Sports wear: more fashion than sport in China - Shaun Rein
• International hotels should stay away from the sex trade - Shaun Rein
• China's e-commerce is booming, but not for US retailers - Shaun Rein
• Apple is the new Blackberry in China - Shaun Rein
• China's consumers move away from blink - Shaun Rein