Mulberry increases international expansion
UK leather handbag brand Mulberry is moving its flagship London store into bigger premises and planning a new corporate structure to match its international ambitions.
The company is increasing its international expansion, adding between 12 and 20 stores to its 86-strong portfolio this year to increase its presence in the US, Europe and Asia.
The firm’s sales growth of 69% in 2010, however, has brought new challenges. The company has had to find a way of doubling its leathergoods production while maintaining the high quality its luxury price tags imply.
“Material costs, particularly quality leather, have gone up 10% to 15% over the last year," Mulberry CEO Godfrey Davis told The Wall Street Journal.
Mr Davis told the US newspaper: “£500 to £750 seems to be an area where our customer is happy to part with their money, and it’s becoming increasingly difficult to occupy that segment. We are having to work hard to give customers value for money.”
“We can't compromise on quality,” Mr. Davis said. The company instead saves money through smart design, effective negotiation with suppliers and improving efficiencies.
