Listening

Warm Up

Helpful Words and Phrases

Listen and repeat.

  1. tighten one’s belt
    • ex. I should tighten my belt and avoid buying unnecessary things.
  2. a slowdown
    • ex. The store experienced a slowdown in sales after the holidays.
  3. demand
    • ex. There is an increase in demand for ice cream during the summer months.
  4. unfavorable
    • ex. The increase in prices of most products is unfavorable for my small business.
  5. lag
    • ex. The student is lagging behind in class and needs extra help from the teacher.

Article

Read the article below and answer your tutor's questions.

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The luxury brand Burberry warned that its 2024 income would be lower than what it expects. This is because rich consumers in the Americas tightened their belts during the crucial Christmas shopping season. In a statement, Burberry said it had experienced a continued “slowdown in luxury demand” after basic expenses and interest rates around the world increased.

According to the company, sales from October to December 30 decreased by 7% to 706 million pounds (almost ¥133 billion). It also expects that unfavorable currency exchange rates will reduce the company’s profits by around 60 million pounds (more than ¥11 billion). Unfavorable currency exchange means that the company will get less when it exchanges its money from one currency to another.

This was Burberry’s second sales warning in three months. In November, it warned that its sales growth was lagging behind its goals. This is because of the pressure in the luxury market. Other luxury brands have also warned of the decreasing demand for their products.

This material was based on an article by The Associated Press.

Discussion

Choose a topic and discuss the questions with your tutor.

Luxury Brands

  • Is it important for you to own items from luxury brands? Why or why not? Discuss.
  • Why do you think luxury brand items are expensive? Discuss.
  • Burberry warned that its 2024 income would be lower than what it expects. What do you think the company should do to increase its income? Discuss.

Consumers’ Behavior

  • How would you describe a smart consumer (ex. buys items on a discount, buys high-quality items)? Discuss.
  • Rich consumers in the Americas tightened their belts during the crucial Christmas shopping season. Why do you think consumers did so? Discuss.
  • As a consumer, what is your priority when shopping (ex. I buy only what I need)? Discuss.