New story
Ilya St
in
Marketing
October 7 01:22

Burberry running promotion to US customers that buy their products from a reseller

Photo: Bloomberg
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Burberry invited customers, who buy their products on RealReal website, a luxury goods reseller, over for tea and a personal shopping session at one of their Burberry locations in the UK. Burberry, a British clothes and accessory manufacturer, known for their upscale luxury goods, was heavily criticised for destroying 35 million dollars (28 million GBP) worth of unsold products last year. The company responded by putting out a statement that they will refrain from doing this in the future as well as stopping the sale of fur clothing.
Starting in 2015, Burberry’s sales in the U.S. have dropped significantly. As part of a strategy to create a closed-loop economy based on the renewal of resources, Burberry has agreed to collaborate with RealReal, a company that specializes in reselling luxury items. This partnership could possibly help revitalize the market and gain back some customers, according to Burberry representatives. Although European luxury brands usually prevent the redistribution of their products, Forbes reports that RealReal had total of $270.3 million in sales in 2018. But the company doesn’t have a perfect track record, with Chanel suing RealReal for allegedly selling counterfeit products on their site.