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SANYO SHAKAI: AFTER LOSING THE BURBERRY LICENSE WHAT’S NEXT?
The president of Sanyo Shokai announced that the firm would end its 40-year-old licensing agreement with Burberry. Sanyo Shokai sold clothing under the Burberry label in its Japanese retail outlets. They needed to convert or close boutiques. 50% of the company’s sales and the majority of profits were made with Burberry labels. The stock declined by 30%, from 310 to 210 yen per share. This descriptive case ends with the president mulling over what factors might have caused Burberry to terminate the long-term licensing agreement and what actions should be taken to make sure the company rebounds.