Case 11.3: Burberry, Ltd.Is It Okay to Burn Unsold Goods?
Introduction
On a warm sunny Thursday morning in July, before Marco Gobbetti – CEO of Burberry – had the chance to enjoy his morning cup of tea, Burberry’s long-standing practice of destroying unsold goods in order to maintain brand value was the subject of criticism on the front page of The Times.1
Gobbetti, who had been CEO of Burberry for just over a year, was relatively unphased by the news as he was the one to disclose the practice in Burberry’s Annual Report. In addition, of course, everyone in the fashion world knew luxury brands destroyed unsold goods. However, the lay people and consumers outside the fashion empires of Milan, London, and New York ...
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