The leather goods produced by Mulberry in two manufacturing plants in Western England account for 55% of the total business. Although Mulberry continues to expand overseas, Britain is still its largest market. Thierry Andretta said: “after the British referendum in 2016, the exchange rate of the pound against other currencies began to weaken.
The cost of imported raw materials, such as the leather of the Italy factory, is rising. Our cooperation with each supplier is closely related to the exchange rate of the euro or US dollar. This is always a challenge for us, because we still promise to control the price of 2/3 of our products under 995 pounds. ” In 2015, Mulberry, famous for its high quality leather handbags, tried to brand the high-end luxury line, and launched the handbag that cost more than 1000 pounds, but eventually led to a series of earnings warning.
Since then, the former Italy luxury jewelry brand Buccellati CEO Thierry Andretta joined the company, allowing the brand to return to light luxury positioning and win back customers. In the 2015 fiscal year, half of the year got rid of the loss and returned to profit. At present, about 75% leather goods of Mulberry are lower than 1000 pounds or even lower. Most of the handbags of Mulberry are made in Britain. They inherit the traditional skills of British leather artisans. They are loved by celebrities such as Prince Harry’s fiancee Meghan Markle. In addition to Britain, the production sites of Mulberry include Italy and Spain.