Mulberry Shifts Focus to British Identity, Reduces China Exposure
Mulberry Group has announced plans to realign its operations in Asia, reducing its presence in China and prioritizing the UK and US markets. The move reflects the brand's strategy to enhance its position as a British luxury brand, following a decline in consumer demand for high-end goods in China.
"We need to return to our roots and re-establish the Mulberry spirit," said Andrea Baldo, CEO since September 2022. "Simplifying our business model is essential for Mulberry's success."
Luxury brands have faced challenges globally due to price increases, economic uncertainty, and a shrinking customer base. The prolonged economic downturn in China has further impacted retailers' margins.
Mulberry aims to reduce operating costs by 25% annually by 2024, following a 27.9% drop in Asia-Pacific sales for the 13-week period ending December 28. Revenue declined by 18.3% during this period, while sales in Europe and the US increased by 11.1%.
To strengthen its financial position, Mulberry has appointed Billie O'Connor as its new Chief Financial Officer. Loss-making Burberry had previously announced similar measures to improve its operations and margins in November 2022.