Mulberry aims for an affordable luxury comeback

What happened As global consumers become more value-conscious, Mulberry is slashing the prices of its bags to under $1,383 to broaden its appeal. The British luxury brand plans to price 60% of its products at or below this level in a bid to boost sales, according to Bloomberg. On November 19, Mulberry reported a pre-tax loss of $19.9 million for the 26 weeks ending September 28. The Asia Pacific region saw the biggest decline in retail sales, with a steep 31% drop, largely driven by reduced demand in China amid dampened consumer sentiment and the country’s economic slowdown. “We were asking the customer for a little bit too much… In reality, we are becoming a kind of value for market in the luxury space,” the company’s new CEO, Andrea Baldo, told Bloomberg earlier this week. The Jing Take With the resurgence of late ‘90s and early 2000s trends like low-cut jeans, baguette bags, trucker hats, brands like Mulberry are eager to relaunch their most iconic pieces from that era – and make them more accessible for consumers. This strategy is part of Mulberry’s efforts to revitalize the brand by attracting customers seeking more affordable luxury, especially as other fashion houses face declining demand. Over the years, the brand’s Bayswater bag has remained a timeless favorite among Chinese netizens, who believe that it will “never go out of style.” In a post titled “Four bags you can carry until you grow old,” Xiaohongshu blogger @twofish shared that, alongside Chanel and LV bags, Mulberry’s Bayswater is a worthy long-term investment. “I have used this bag for nine years. On business trips, it can hold a 13-inch laptop, and the grainy cowhide is textured with a nice sheen.” Many commenters praised the bag for being “good looking” and asked about its weight and comfort. “Just bought it and plan to use it until I am 65,” posted Xiaohongshu user @gillgill_ – referencing the official age of retirement in China. “I bought a Bayswater 10 years ago and never thought of using it. I took it out recently, and now it is my most used bag.” posted another user. The Bayswater bag’s continued popularity in China highlights its lasting appeal. As Mulberry reintroduces its iconic pieces at more accessible price points, the brand may regain relevance with a younger generation of luxury shoppers in China, eager to embrace the Y2K resurgence and invest in timeless yet affordable products. To regain market share, brands like Mulberry will need to strengthen the narrative of their heritage and quality while leveraging digital channels to build authentic connections with Chinese consumers. Utilizing platforms like Xiaohongshu, where the Bayswater is already a cult favorite, can further amplify their appeal. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Mulberry aims for an affordable luxury comeback

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Published November 21, 2024

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Mulberry aims for an affordable luxury comeback