Mr. Ma, CEO of Tencent, has saved burberry’s business by his own company’s wechat

Recently, the value of 15600 ocean Burberry DK88 bag sold in full swing! Maybe they want to thank the WeChat. Burberry’s latest performance data show that as of June 2017, sales revenue in the first quarter ended up, to 478 million pounds (about 4.79 billion Hong Kong dollars), an increase of 3%. They indicated that the recovery in performance was mainly driven by the improvement of the Mainland and Hong Kong markets, with the mainland market benefiting mainly from the increase in sales of electricity, especially microphones.

WeChat as one of the country’s largest social software, naturally hope that in the online retail sector a share. Experienced a three-year dilemma Burberry, 2016 to 2017 fiscal year in addition to 2% of sales, net profit even more out of 21%. To control costs, many stores to close down, streamline the product line, but also at the sale of beauty business. Analyst KenOdeluga once said that most of the stores are concentrated in the physical store to sell products, coupled with online fake, Burberry positioning in the WeChat sales are strategic deployment.

Although the habit of buying luxury goods in the micro-letter is not yet popular, but Tencent to attract high-end brand moves, is undoubtedly declared war on Alibaba, confirming the spread of China’s Internet competition war. This year, WeChat to attract more big, released a multi-media advertising, but also for the establishment of micro-shop to provide a more smooth road. Tencent president Liu Chi-ping has said that WeChat in the commercial field will become more and more important.

Thanks to the WeChat greatly, Burberry during the global market, electricity business revenue increased by 40% year on year, the mainland market sales more doubled year on year. This is mainly because the WeChat marketing for Burberry increased by 3 times the amount of consumer coverage, coupled with the mainland visitors to pick up, so that the business in Hong Kong has improved.

As for the worst, the US market, which has been seen as the main driver of growth, is no longer the only place where sales have fallen. As for the British market, the pound fell. Burberry expects the fiscal year will continue to reduce the wholesale and franchise sales, increase the sales channels, is expected this year’s performance can continue strong.