British fashion house Burberry banks on APAC to stay afloat

Strong performance in the region helped offset its weak Q3 sales.

British fashion retailer Burberry is banking on the strength of its sales in the Asia Pacific, particularly local Chinese shoppers, in a bid to lessen the blow of travel restriction to its domestic revenues, according to a report from GlobalData.

Some of its initiatives in China include dedicated collections, such as its Lunar New Year campaign in 2020. This included a limited-edition collection inspired by the Chinese zodiac and animated with an original illustration in honour of the Year of the Rat.

Better digital sales and strong performance in the region offset its weak sales in Q3 FY 20-21, with retail revenue only falling by $42.33m (£31m) to $939.44m (£688m), GlobalData’s associate retail analyst Gemma Boothroyd commented.

A decline in international tourism has hurt the company, with EMEIA sales suffering a fall of 37% during the quarter due to less travellers and an average of 19% of regional stores being shut at the same time.

“With international shoppers no longer able to claim VAT back from purchases made in the UK as of 31 December 2020, the UK will become a less attractive destination for luxury shopping, meaning that Burberry will suffer from weakened demand from tourists who usually prefer buying the British heritage brand in its home market,” Boothroyd said