Mulberry has ‘neglected to connect’ with UK shoppers, says boss
Mulberry has ‘neglected to connect’ with UK shoppers, says boss
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Struggling luxury bag maker Mulberry has “neglected to connect” with British customers in recent years and plans to sell more bags in the UK, rather than China, to make the company profitable again. Chief executive Andrea Baldo told the PA news agency the company has “lost so much business” in the UK in recent years that there is “a huge space” for the company to grow.
Founded in 1971, London-based Mulberry is most famous for its luxury leather handbags. But it has seen profits nosedive of late, partly as a result of waning appetite for luxury goods among Chinese consumers, previously a key market for the fashion company.
Mr Baldo said the company will focus less on China and close 12 stores across its Asian estate while aiming to open more shops in UK cities in future. It will also re-enter the wholesale and outlet sales markets, including by striking new deals to sell its items at John Lewis and Flannels.
Mulberry has no presence in Birmingham or Liverpool, he said, and it will look to expand in those cities in future. The UK expansion comes after retailers such as Marks & Spencer have warned that rising company taxes and falling consumer sentiment could hit their home market.
While Mr Baldo admitted those factors are “a challenge”, he added: “With the right product, distribution and communication, we are able to take advantage (of the UK market) no matter where the economic conditions are.”. Mr Baldo, who joined last year from luxury brand Ganni, wants the company to focus on its “Britishness” and “cultural relevance” and simplify the business to counter plunging profits.
