Mulberry’s Revival Strategy: Embracing British Heritage and Digital Expansion
In a bid to revitalize its fortunes, Mulberry Group is shifting its focus towards reclaiming its British customer base, establishing a robust digital presence in the US, and scaling back operations in China. According to CEO Andrea Baldo, the luxury handbag maker aims to capitalize on its ‘British heritage’ appeal, a strategy also employed by rival Burberry.
Rebuilding the Brand’s Foundations
Baldo, who took the reins in September, emphasized that luxury for Mulberry means offering high-quality products at an accessible price point. To achieve this, he plans to rebuild the brand’s wholesale and outlet networks, targeting UK customers who have been neglected in recent years. This approach marks a significant departure from the company’s previous focus on expansion in Asia-Pacific.
A Shift in Marketing Strategy
As part of its turnaround plan, Mulberry will shut underperforming stores in China and redirect marketing budgets towards the UK and US. This move is designed to boost the brand’s e-commerce business in these key markets. By doing so, Mulberry hopes to counter the decline in demand for luxury goods in China, a trend that has affected many high-end brands.
Cost-Cutting Measures
To improve operational efficiency, Mulberry is working to reduce operating costs by approximately 25% on an annualized basis compared to 2024. This effort comes on the heels of a 27.9% drop in Asia Pacific sales during the 13 weeks ending December 28. Despite this decline, sales in Europe and the US grew by 11.1% during the same period.
New Finance Chief Appointed
Mulberry has appointed Billie O’Connor, a seasoned finance professional with experience at Selfridges Group and Marks and Spencer, as its new finance boss. This move is expected to bring fresh perspectives and expertise to the company’s financial management.
Market Reaction
Investors responded cautiously to Mulberry’s turnaround strategy, with shares dipping 2.5% at 1220 GMT. However, the company’s commitment to revitalizing its brand and operations may yet yield long-term benefits for stakeholders.
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