British luxury brand Burberry has burnt down the £28.6m worth of unsold perfumes, bags, and clothes to stay up front.
The company often disposes of the extra stock in a bid to stay exclusive and avoid mainstreaming of its products.
Burberry Burning Its Expensive Products
According to BBC, the value of products that the company disposed of was 6% higher than the value, it disposed of in the last financial year. The company also told that last year it had to destroy £10m worth of stock after it entered into an agreement with US firm Coty that will make a new stock of its perfumes. The luxury brand sells a variety of products that include clothes, mainly coats, scarfs, jackets, perfumes, and various accessories. But these are its trench coats and distinctive check patterns that make identify the brand.
The company has claimed to dispose of its products in an environmentally friendly way by recapturing the energy.
Brand’s spokesperson reportedly told that Burberry has a careful mechanism to minimize the extra stock and disposes of when necessary in a responsible manner.
Why Does It Burn Its Products
Burberry burns down its products to stay affluent, exclusive and upfront. The company simply wastes its extra stock to avoid its selling on discount and going into the hands of every person.
According to Maria Malone, the principal lecturer at Manchester Metropolitan University, “They don’t want Burberry products to get into the hands of everyone who sells them at a discount and devalue the brand, ” reported BBC. So, according to Maria, the company engages in such practice so that market is not flooded with discount.
What is Burberry’s Problem
According to another fashion expert that BBC quoted, the company is making the problem of diluting its identity and creating the excess stock. And, there is no way that a company can combat this problem. The brand is also facing a hard time in staying exclusive and fighting the counterfeiters who are placing its check on everything.
By the end of last year, the company also took steps to revamp its brand by cutting the costs and closing its stores in various location, in an attempt to reenergize its brand.
Burberry might have its own reasons to burn extra stock. But, authorities must keep a check and balance on brands to make sure that there is no loss of economic resources and companies are responsibly pursuing their business operations.