Burberry (LON:BRBY) is launching its first-ever Chinese New Year campaign, the blue-chip company has said. The move comes with the London-listed retailer looking to benefit from the country’s growing luxury goods market.
Burberry’s share price has jumped in today’s session, having added 2.22 percent to 1,659.50p as of 10:56 GMT, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.12 percent higher at 6,767.74 points. The stock has recovered some of the ground lost yesterday when the luxury goods retailer’s shares came under pressure as US tech giant Apple cited a slowdown in China as one of the reasons for an unexpected revenue warning.
Chinese New Year campaign
Burberry unveiled yesterday its new Chinese New Year campaign which will feature classic pieces of the fashion brand, including archive-print scarves, the trench coat and tailoring, as well as urban staples including hoodies, t-shirts and joggers. The campaign, shot and directed by photographer Ethan James Green, stars Chinese actresses and Burberry brand ambassadors Zhao Wei and Zhou Dongyu.
The move underscores the importance of China’s growing luxury goods market to the FTSE 100 group which said in its half-year results in November that its Asia-Pacific region had grown by a mid-single digit percentage in the 26 weeks to September 29, with Mainland China growing and Chinese spend shifting into Asian tourist destinations within the region.
Analysts on FTSE 100 retailer
JPMorgan Chase & Co, which is ‘neutral’ on Burberry, lowered its price target on the shares from 1,900p to 1,820p last month. According to MarketBeat, the blue-chip retailer currently has a consensus ‘hold’ rating and an average price target of 1,977.56p.