Just as other brands are raising prices to regain exclusivity, it seems British brand Mulberry plans to do the opposite: Offer more affordable products in a bid to boost its growth.
According to the Telegraph, this bit of pleasant news was revealed today, as the label—loved by cool girls like Alexa Chung and Cara Delevingne—issued a second consecutive profit warning, causing its share value to fall by four percent.
The strategy to make its goods more affordable was announced by the brand’s acting CEO Godfrey Davis, following the departure of its former CEO Bruno Guillon (who was the former managing director of Hermès in France.)
The Telegraph reported that Guillon’s aim was to make Mulberry more exclusive but major price rises ended up alienating customers rather than entice them, and it was reported that his vision contributed to the departure of creative director Emma Hill, who was responsible for the insanely popular Alexa and Del Rey bags.
“Following the recent change in management, we are focussing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers, Davis said. “This will have short term financial consequences but is necessary to ensure the future strength of the Mulberry brand.”
So, how much more affordable will Mulberry bags be? No word yet on exact price points, but—as the Telegraph pointed out—the bags have seen around a 60% price increase since 2010, so perhaps they’ll go back to their original prices.