Burberry burns $51 million in unsold luxury products to protect brand

Irving Hamilton
July 21, 2018

Probably not, but apparently, the brand is doing just that.

Luxury fashion brand Burberry is being slammed for destroying around $37 million worth of goods over the previous year.

Burberry reportedly destroyed about $37 million worth of goods over the previous year by burning them.

So why would they do this? The brand added that its new beauty license with Coty called for unsold, pre-Coty cosmetics products to be destroyed. Burberry's measure to stop the counterfeiting of their products has not been received well by the shareholders, with one of them even asking why the unsold products were not offered to the company's private investors, reported The Times.

"You can send the message that our products are durable, we've designed them for longevity with craftmanship", she said.

This may sound shocking but Burberry aren't alone in this outrageous practice which is apparently common among high-end fashion retailers.

"Burberry has careful processes in place to minimize the amount of excess stock we produce".

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The items which could be considered for cutting of tax rates might include sanitary napkins , handicrafts and handloom goods. A new set of simpler return filing forms - Sahaj and Sugam - are also in the works that would be finalised soon, Goyal said.

In a statement Burberry said it seeks to reduce its waste and has partnered with the Ellen MacArthur foundation's Make Fashion Circular Initiative, "where we join other leading organisations to work towards a circular fashion economy".

The FTSE 100 Company said past year was unusual as it had to destroy a large amount of perfume after signing a new deal with United States firm Coty.

Of course, environmentalists are not pleased with what's going on.

Now, people on Twitter are calling out the brand.

Burberry is not the only company having to deal with a surplus of luxury stock. As the Times reports, a small city called Vasteras in Sweden is powered by the unsold goods of H&M.

Instead of slowing production on items when garments weren't selling as fast as predicted, recycling the items, removing the tags and giving them to charity, or publicly donating them as a positive PR exercise, Burberry chooses to set fire to millions and millions of pounds' worth of luxury items. Released on Earth Day (22 April), "The Future of Fashion is Circular" campaign rewards any shopper who sells a Stella McCartney item via the USA fashion resale site The Real Real with a $100 voucher to shop directly with the fashion brand in one of its boutiques.

Thankfully, the secret is no longer safe.

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