“BURNBERRY” - Burberry Burns $37 Million, and a very large portion of their Social Media Influence
After the news that Burberry burns its inventory surplus to prevent the “wrong people” from wearing the iconic brand, yep you guess it, social media lit up like a Christmas Tree in July.
Which equates to approximately 20,000 of the brand’s iconic trench coats — leaving the stockholders asking why the products weren’t offered to the company’s private investors.
REALLY – this is the reality we’re dealing with here. You couldn’t make it up, and you couldn’t make it look any worse.
Why? To protect the value of their commodity by limiting access to the public. I’m asking why firstly they didn’t just gauge the market demand a little better before tearing through the environment on a fabric fastener chemical spree. Or secondly, they could have removed the tags and donated to help clothe the needy.
The actual quote is pretty disgusting.
"On the occasions when disposal of products is necessary, we do so in a responsible manner and we continue to seek ways to reduce and revalue our waste,” the company spokesperson said.
Burberry, which has disposed of around $118 million worth of goods over the last ve years, allegedly does so in order to maintain the brand value by keeping the designer label from being worn by the “wrong people” after showing up on the “grey markets” for a discounted price, industry insiders told the Times.
“On the occasions when disposal of products is necessary, we do so in a responsible manner and we continue to seek ways to reduce and revalue our waste,” the company spokesperson said.
“Burberry reportedly burned $37 million worth of luxury goods”
Burberry is a known discount hack. A few years ago the british luxury fashion brand faced a class action lawsuit for using misleading price tags at its outlet stores to fool shoppers into believing they were getting big bargains.
The company, which specifically manufactures some of the products for its outlet stores, is accused of intentionally presenting false price information on products that have never been sold in its retail stores to mislead customers.
Outlet stores typically sell excess or old stock at a discount, although some retail hacks also manufacture goods specifically for discount marketplace using inferior materials and manufacturing.
Other semi-precious brands that have also vaulted over the shark include H&M and Richemont, which owns Cartier and Montblanc, have also been known to destroy excess product, according to the Times.
Despite their reasoning and the method used, many on social media criticized Burberry for the “utterly disgraceful” practice.
We can think of a better use for excess inventory - where thousands of children do not have proper clothing for winter...Burberry could have simply torn off the tags and donated the coats to the Circular Economy.
I can think of other reasons we should be burning our Burberrys.