New strategy applied to other collections
In Mulberry’s previous fiscal year, its profits dropped 74 % because it tried to attract customers from a higher echelon, which has resulted in higher prices. One such example of higher prices is a hand bag costing more than 1,000 pounds.
In an attempt to win back customers, prices have been lowered for its 2015 spring and summer collections. 66 % of its hand bags now cost well below 1,000 pounds, while that number only reached 45 % in 2014.
As a result, first quarter turnover in its current fiscal year (which ended 6 June) has grown 17 % compared to the first quarter last year. Its like-for-like turnover has also grown 15 %. CEO Thierry Andretta joined the company in April and said he was satisfied with the results. He now plans to adapt that particular strategy to Mulberry’s shoe and clothing collections.
