Thursday, December 07, 2006

Burberry

Interesting news about Burberry today. Interesting because for the last few weeks I have been considering buying some Burberry shares. Glad I didn't, not because I think they should be boycotted but because I suspect the shares will drop for a little while and will be better to buy.

If you haven't heard, Burberry are rather unpopular because they are closing a factory in South Wales to move production to China. This means tops will cost £4 to make rather than £12. People are complaining that Burberry isn't a struggling company so they should keep the jobs in the UK. Let's be realistic though, they are succeeding because they are making sensible decisions ahead of the game, unlike a lot of other clothing manufacturers. Realistically how can they ignore such a differential in costs. In order to keep making profits then they have to save where they can and this is the only sensible choice. Burberry cannot be blamed for making this choice. If we want to keep manufacturing in the UK then the government have to make it attractive.

No comments: