Last year, the Chinese Communist Party launched a crackdown on luxury purchases and ostentatious extravagance by banning banquets and television and radio advertisement for expensive goods.
The Chinese government’s crackdown on luxury goods has hit the world’s luxury goods industry but Burberry remains confident of the potential of emerging markets, the British fashion label’s chief executive told CNBC at the London Fashion Week.
“It’s not just Burberry that was affected [by the crackdown], the entire industry was,” Angela Ahrendts told CNBC on Monday. “But Burberry was the only one that was transparent about it but the entire sector was affected,” she said.
Burberry surprised markets last September with news that it expected 2012 sales and profits to slow and come in below expectations. The Asia-Pacific region makes up a sizeable chunk of Burberry’s sales, 37 percent of the group’s £2 billion ($3.18 billion) revenues in year ended March 2013.
Steady wins the race!!