British luxury designer Mulberry has announced plans to make it’s exclusive designs more affordable in a bid to increase the company’s profits.
The brand issued a profit warning last week (the second consecutive one), causing its share price to fall by 4 percent.
According to the Telegraph, the Somerset based brand are hoping to lure back disenfranchised customers by launching a range of products in June within the £500- £700 price bracket.
The company has in the past tried a strategy of making its products more exclusive which resulted in sharp price increases in the last couple of years, a vision of former CEO Bruno Guillon.
Mulberry has now had a major change in management with former creative director Emma Hill leaving the brand in 2013 citing disagreements with management and strategy for her exit. Now former CEO Bruno Guillon has also left the position which he’s occupied since March 2012.
This new strategy is an attempt to boost the company’s growth by winning back some of the customers who were priced out of getting their hands on popular products like the Alexa bag whose price shot up by over £500 during Guillon’s tenure.
Mulberry’s acting CEO and non executive chairman, Godfrey Davis said in a statement,
“Following the recent change in management, we are focusing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers, adding that, “This will have short-term financial consequences but is necessary to ensure the future strength of the Mulberry brand.”
The brand recently commissioned model Cara Delevingne to create a collection of rucksacks which will retail from £890 when they launch in the next coming months.