Headlines

Burberry Worried About China

Luxury brand has closed half its stores there; ceo calls slowdown “the new normal”

Published

11 years ago

October 7, 2013

steve kaufman

Angela Ahrendts, ceo of fashion house Burberry Group Plc (London), said the economic slowdown in China could be more than just a passing phase for the luxury goods sector.

“This Chinese slowdown is maybe not a temporary accident but a new normal,” Ahrendts told the French newspaper Les Echos.

Burberry has shut half its stores in China since it took over its distribution network, Ahrendts said.

However, she said, “there are other growth opportunities in the world,” specifically mentioning Latin America and calling Indonesia “the new China.”

The Chinese economy is set for 7.5 percent growth in 2013, the slowest pace of expansion in 23 years. A recent government crackdown on conspicuous spending has also hit sales of luxury items.

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