What Serious Challenges Will Luxury Mulberry Face?

Here world Clothing and shoes Xiaobian of the network to introduce the luxury economy slowdown Mulberry questioned will face serious challenges.

Global Luxury goods The market is in a period of economic slowdown, and even big brands such as Prada, Mulberry and Burberry are under pressure. In addition to China's slowing economic growth and political turmoil, Russia and the Middle East are also having a disastrous impact on luxury businesses in turn. Even Bain & Company, the world's leading management consultancy, said that with the rapid expansion of many brands, this slowdown will be a brake on the global luxury industry for some time.

Mulberry 2014 advertising blockbuster

Mulberry is now in deep trouble. It has issued countless profit warnings in the past two years, and sales in the first half of the fiscal year also dropped by 12%. Reporters believe that this is partly due to the loss of creative director Emma Hill, and Bruno Gallion, who later came from Hermes, is interested in making Mulberry a more traditional luxury route, focusing on high-end expensive handbags, positioning the brand to compete directly with the global luxury giant Chanel and Louis Vuitton.

Many people believe that this is the beginning of Mulberry brand extinction. First of all, higher and higher prices make brands unreachable and alienate their core consumer groups. Virtual high product prices will only destroy their brand value in the eyes of consumers. Smart consumers do not see the value behind inflation. They think that the cost of buying their bags several years ago is much less. Mulberry does not have enough brand assets to prove its value for money. For safer investments, consumers begin not to choose their brand products.

Burberry 2014 advertising blockbuster

The problem of Burberry is mainly about the control of the factors that can not be contended, such as political and economic instability. These are very different from the Mulberry problem. It is about the internal strategic decisions such as pricing, product and management. In the first half of fiscal year, Burberry retail sales increased by 15%, or 748 million pounds, while wholesale sales increased by 13% to 317 million pounds. Burberry's new perfume My Burberry also enjoys strong sales.

Among them, Burberry is much smarter than Mulberry, especially through digital channels, through story telling and personalized seeking. Storytelling is very important, permeating the story of a brand into clothes, showing it through communication behavior and products. Brands like Burberry have injected simple but meaningful stories into the hearts of their products, which is conducive to brand sales, and ultimately buyers can enjoy the personalized characteristics brought about by the payment of their products.

The Burberry custom Bespoke series allows consumers to personalize the iconic windbreaker and share it with the entire social media, giving consumers the right to express themselves. Despite the decline in the growth of many luxury brands, Burberry continues to grow on its personalization, while Mulberry has created a serious situation in today's brand due to external factors and internal decisions.

Godfrey Davis is now Mulberry brand CEO, and is striving to relocate its brand to the mid end market. But this requires significant investment, and Mulberry still wants to appoint a new creative director. Mulberry brands also lag far behind Burberry in terms of numbers. It is understood that Burberry is implementing their global ambitions in their way. Their concept stores are full of smart tags (RFID tags) all the information and brand show content, which not only makes consumers unique, but also encourages the desire to click on items to buy.

In addition, many luxury buyers are usually referred to as "excursionists" - they usually do not often buy luxury goods, but they will buy one or two pieces, which they use to reflect their beliefs or identities. Luxury brands need to have the belief beyond aesthetics, to provide customers with deeper, more personalized things.

Therefore, if we want to succeed, Mulberry needs to retain its core customers. It needs to attract women from the upper class in its core market, but only time can tell us whether it will succeed or be otherwise. brand To fill the gap. They are not able to maintain a reliable high-end image when they try to change their image and turn the domestic luxury brand into a global high-end brand.

But this is not a loss for the luxury market. Some luxury brands are truly eternal, such as Herm s and Cartier, still struggling to maintain their steady growth under such a falling voice. The key is to establish ourselves as an important brand image in the luxury goods industry, so that consumers can become part of their brand story and are willing to pay expensive prices.