Two years ago, Mulberry that he already has more than four conditions. They hired from the Hermes French general manager Bruno Guillon as a new CEO, toward the goal of becoming a global luxury brand impact. But now it seems that this is a completely wrong decision.
Guillion was finally dismissed in March 2014 after issuing three earnings warnings to investors. Has been relegated to the second line, sitting in the non-executive director of the former CEO Godfrey Davis served as interim executive director. 1 month later, the financial origin of the CEO announced Mulberry will adjust the pricing, return to the people in the past positioning.
Mulberry for a long time to be considered a cost-effective light luxury brand. This is quite attractive to the consumer positioning is largely due to Davis and 2013 just left Mulberry creative director Emma Hill.
Shortly after Hill joined Mulberry in 2007, the financial markets collapsed. This is the history of mulberry replica handbags brand development of a turning point.
You can see Mulberry as a miracle in the economic crisis. Hill as design director, Replica Mulberry classic Bayswater handbag for a major transformation, it is both fashion, quality and functionality. And then launched a star Alexa Chung named Alexa handbag. The series took the lead in the introduction of a handbag introduced three kinds of size of the practice, in the fashion circle caused a sensation. People can carry a mini-Alexa into the nightclub dance floor, you can also leave a large size of Alexa commute. No one thought that only by the size of the change can make the same handbag to show a completely different style.
In addition, this approach can also expand the price range. Mulberry most of the mini-size handbags are priced below 400 pounds. This practice is now in Burberry, Coach and other brands of handbags can see.
In Hill’s design with a British style, it often contains New York’s inclusive and popular. This is related to her career experience. The British designer worked in Burberry, and later she left London to live in New York for 15 years, has served as Mark & Spencer, Calvin Klein, Marc Jacobs and Gap accessories designer.
In fact, Mulberry in the British limelight once more than Burberry. In December 2010 the British Fashion Awards, it defeated Burberry won the annual fashion brand award. In the evening, many fashion editors and social celebrities were lined up to celebrate Emma Hill.
This is the peak of Mulberry brilliant. 2010 to 2011 fiscal year, Mulberry’s sales almost doubled to 1.216 billion pounds. In 2012 its sales continued to rise 62%, the stock price in two years turned over 10 times. Many analysts began to predict that Mulberry will be the next Burberry – a sales of over 1 billion pounds of the company.
All this to Mulberry’s board began to some expansion. They decided to ask the luxury goods industry origin Bruno Guillon to carry out a comprehensive brand upgrade and global expansion.
Guillon in order to make Mulberry more luxury brand to do to send, has moved to China and Turkey, part of the production line and moved back to the UK, resulting in Mulberry had to raise the product price. It is also within Guillon’s plan, he hopes to develop more high-end handbags series. Positioning adjustment, Mulberry most of the handbags are priced at 700 to 800 pounds, 17% of the single product more than 1000 pounds. An invisible Willow handbag price of up to 1600 pounds.
“When a brand to raise the price of mulberry replica handbags to more than £ 1,000, it faces a competitive environment is completely different, and in this new environment, Mulberry does not have a stunning product to make it more attractive than other mature brands “Said Maureen Hinton, an analyst at consulting firm Conlumino. A very natural analogy is Burberry, but it is too difficult to do Burberry.
Replica Mulberry and Burberry did not like the history of luxury history. It has been an independent designer brand before 2000. Its founder Roger Saul in 1971 with 21-year-old birthday received 500 pounds in his home in the basement began to make leather products. Until the 1990s, mulberry replica handbags in the UK only a little fame. The ambitious Guillon began to expand in Asia, the Middle East and even the US market, which led to its sharp decline in profits, and ultimately into a financial crisis.
In 2000, Singapore’s rich man Ong Beng Seng and his wife Christina Ong bought Mulberry 42% of the shares. Two years later, the two sides of the conflict of interest eventually let Roger completely lost control of the left Mulberry, then the financial director Godfrey Davis was appointed as the new CEO.
In the hands of Davis, Mulberry’s product line re-simplified to the highest profit margins of the main accessories. In overseas expansion, it signed a wholesale sales agreement with multiple partners to increase the company’s revenue, which for its success after several years to establish a foundation.
It is because of this foundation so that Mulberry can not become a big luxury brand. Blindly let it lose its original advantage.
Mulberry Replica constantly raise the price of the two years, the other with its positioning close to the light luxury brands are in global expansion. “A brand can not do all the things.Mulberry in the high-end fashion market is no credibility, it’s the opportunity in the light of the market. Similar to the positioning of Michael Kors and so have done a good job.” BNP Paribas luxury research director Luca Solca Told the first financial weekly.
In the success of the light brand, multi-channel sales model has been one of the important strategies. In addition to retail stores, they often through a large number of wholesale business and discounts to increase sales opportunities. However, Mulberry but in order to improve their brand image in 2012 after the continuous reduction of wholesale business, reduce the discount opportunities, to take full-price strategy.
“Raising prices is always more difficult than price, which is a common law for the market,” Solca said.
And Guillon’s re-positioning of mulberry replica handbags is clearly inconsistent with Hill’s design philosophy. The differences between the two were considered by the industry as the main reason for Hill’s departure in September 2013. As Hill’s departure, Mulberry in February 2014 London Fashion Week’s big show has also been changed to a small-scale new conference. This has been in crisis Mulberry is another heavy blow.