British bag manufacturer Mulberry has announced its new company strategy is a resounding success. After a series of bad results, it decided to return to more affordable prices, which in turn has resulted in higher sales.
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.