China Herald: How can Burberry survive in China?

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

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