The latest results from Mulberry showed that in 2014, the total revenue of the company was 149 million pounds, and the total income was 164 million last year.
Previously, former CEO Bruno Guilloni wanted to develop the high-end market for Mulberry, with a top price of up to 5500 pounds and a poor result. Bruno Guilloni left, Mulberry decided to hand back to the core product price, users in britain.
“Last year, the board of directors for the handbag price strategy has been slightly achievement.” Thierry Andretta, chief executive of Mulberry, said, “we want to strengthen Mulberry’s position in Britain and pursue sales increase in the international market. Now, we want to focus on the value of the luxury brand and its English taste to make more consumers around the world feel.
Briefly, Mulberry found that as long as the price adjustment for handbags to $500-1000 price range, handbags sell better. Before, Mulberry handbag prices are more than 1100 pounds. After the price adjustment of Mulberry handbags accounted for about 66% of the total number of products in the same period last year, the proportion is 45%.
The pricing strategy seems to be effective. This year, Mulberry retail sales have increased by 1% to 110 million pounds. The obvious change we can see is that in the first half of this year, the sales volume of the company decreased by 9%, but the sales volume of the company increased by 9% in the second half of the year after the adjustment of the competitor’s package products.