Before I lose the interest of my male readers, I should warn you I am going to talk about women’s handbags and there is a good business reason for me to do so. So please bear with me!
I read in the press the other day that the high-end, handbag retailer, Mulberry Ltd, has been forced to slash prices on its luxury handbags after admitting that its customers cannot afford them. The UK-based company has announced it is adjusting its strategy. As well as reducing the price of its cheapest bags from about $900 by around 15%, Mulberry said it would also be offering more products within this range. Mulberry’s interim chairman has quickly insisted that the quality of the handbags would not be affected by the price cuts and I believe him because if this were to be the case, Mulberry would cheapen its brand and lose its hard-won customer base.
The reason why I was interested to read this [was not because I am a Mulberry bag owner, which I am] but because Mulberry’s business strategy has been revisited in order to adapt to changed market conditions. Continue reading