Burberry’s CEO, Marco Gobbetti, has reassured investors that the company’s sales in China have not been significantly affected by the controversy surrounding its stance on Xinjiang cotton. Despite facing backlash and contract terminations from influential figures in China’s entertainment industry, Burberry reported strong sales figures in its recent full-year results, indicating that its performance in the Chinese market remains robust.

The criticism faced by Burberry on Chinese social media platforms was particularly notable, with many users expressing their displeasure over the brand’s position on Xinjiang cotton. Additionally, the company experienced contract terminations from well-known figures in the Chinese entertainment industry, including popular actress Zhou Dongyu and actor/model Song Weilong. However, Gobbetti remains confident and committed to the Chinese market, emphasizing that it is a primary focus for the brand.

Gobbetti acknowledged the challenges presented by the controversy surrounding Xinjiang cotton but expressed his determination to navigate through the issues in China. He highlighted that the impact on Burberry’s performance has been limited thus far, indicating that the company has been able to weather the storm and maintain its strong sales figures in the country.

It is worth noting that Burberry did not provide further commentary on the issue in its full-year results report. However, the positive performance in the Chinese market demonstrates the brand’s ability to address sensitive issues while remaining dedicated to its business objectives.

In addition to Gobbetti’s comments, Julie Brown, Burberry’s financial head, mentioned the company’s positive relationship with Chinese online marketplace Tencent. This partnership further highlights Burberry’s commitment to the Chinese market and its efforts to strengthen its presence in the country.

Overall, Burberry’s ability to maintain strong sales in China despite the controversy surrounding its stance on Xinjiang cotton showcases the brand’s resilience and adaptability. The company’s continued success in the Chinese market is a testament to its ability to navigate sensitive issues while remaining focused on its business objectives.

Useful Links:
1) Reuters: Burberry sticks with Xinjiang cotton, reports lower fourth-quarter sales
2) Bloomberg: Burberry Defends Xinjiang Cotton Use as Sales Slide in Third Quarter