The British brand Murberry recently confirmed its new marketing strategy, aimed at lowering its prices. This decision might have a short term impact on the brand’s benefits.
Mulberry adopts a new strategy
Two years ago, Mulberry decided to focus on exclusively on the luxury market. But faced with a number of setbacks, the brand turned around towards the opposite market.
Contrary to Bottega Veneta, in favour of increasing the rarity of their products and the exclusivity of their boutiques, Mulberry intends to reduce its prices opening its business to a larger clientele.
The leather hand-bags, the brand’s flagship product, generally cost around £1 000, 60% costing less than this sum. Starting June, the brand brought forth new collections with prices around £500.
Godfrey Davis, CEO of the brand said: “Following the recent change in management, we are focusing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers”.
Mulberry, a change with consequences
For a few months now, the Muberry Group suffered through a number of crisis which severely impacted the brand. Bruno Guillon, the brand’s ex-director, received three profit warnings in 18 months which took their toll, pushing the brand’s stock value down from 1.5 billion pounds to around 425 million pounds.
Mr Guillon left in March and was replaced by Godfrey Davis. The latter then announced the need to make Murberry more accessible to restore the company’s growth. This will of course impact the company’s benefits, but he assures that this new strategy will only have a short term effect, of no longer than one or two years.