Mulberry Profits Fall 28%, Trying To Get Rid Of Light Luxury Positioning

< p > British luxury leather brand Mulberry has been in trouble recently.

Over the past few years, Mulberry has been booming rapidly through its classic package of Bayswater, Alexa and so on. Under the leadership of the former CEO Godfrey Davis, an accountant born, the annual sales of Mulberry exceeded 100 million pounds, and its share price increased by 6 times in the 18 months from mid 2010 to the end of 2011.

< p > 2011, Mulberry invited Herm Guillon s French company director and managing director Bruno Guillon to be CEO, trying to get rid of the "light luxury" position and rush into the world's first-line luxury brand camp.

However, after the new CEO took office, on the one hand to improve the price range of the brand, on the one hand, efforts to rectify the third party sales channels, clean up the brand positioning partners, these measures have a short-term negative impact on the business.

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< p > since October last year, earnings warning has been issued for the two time, and its share price has fallen to half of what it was a year ago. On Thursday, the company announced: < /p >

< p > the pre tax profit of 26 million in the fiscal year ended March 2013, down 28% compared with the same period last year, < /p >

< p > sales revenue of 165 million pounds, down 2% from the same period last year, < /p >

< p > retail business grew by 8% over the same period last year to 107 million pounds, while same store sales increased by 6% over the same period (< /p >).

< p > wholesale business has declined sharply. 16%- is mainly due to the restructuring of European channels. Asian partners have reduced orders due to "inventory /p".

< p > to achieve the goal of positioning pure luxury goods, Mulberry only raised the price of goods by 12% in November last year, and launched more high-end packages priced at more than 1000 pounds.

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P Hill, who once hosted the famous design director of Alexa and Del Rey, announced that her resignation on Monday abruptly dropped 8%.

Nevertheless, according to Reuters, CEO Guillon, who has just returned from a Chinese business trip, stressed that high-end positioning is very important to attract Asian consumers such as China. At present, the Mulberry 80% business still comes from the UK and the European continent, and urgently needs to expand the international market and raise the awareness of brand recognition.

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< p > he said that although the price was raised, 60% of Mulberry's products are priced below 1000 pounds.

The CEO, who is born in Hermes, is determined to ensure the luxury positioning and uniqueness of the brand with high quality and limited production according to Hermes's experience.

Mulberry opened 16 new stores last year, and plans to open 15-20 new businesses this year, focusing on high-quality commercial locations in Asia and North America.

At present, it has 42 in Asia, and 6 stores in North America, 118 in the world.

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