Mulberry understands that prices matter when trying to stay competitive. The British label recently announced that it would be applying price-cuts in order to stay competitive and bring the fight to labels such as Balenciaga or Prada. Despite the company’s CEO, Bruno Guillon, departing, Mulberry seems to take the former CEO’s advice and aims to readjust prices to keep going. The company has reported that its revenues have been wavering, and something has to be done in this regard. Lowering prices might be a short-term decision, but it’s needed if the company is to stay profitable. If you were interested in picking up Mulberry’s intriguing designs, now might be a good time.
On the other hand, Burberry, one of Mulberry’s prime competitors, is doing the exact opposite. The major player in the high-end fashion market might be adjusting prices (and by this we mean raising them) in order to handle the seemingly disadvantageous exchange rates. Due to currency fluctuations, Burberry is expecting a revenue drop of around 30 million pounds, which would explain why the company would be open to the idea of raising prices. These measures could of course backfire and affect sales considerably, especially since the competition is doing the exact opposite.
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Burberry’s decision to raise prices is not final yet, and even if the company goes down this road, it’s unclear just how much of a raise we’re talking about. It might be insignificant. However, in a still unstable and struggling market, we’re not sure it’s a wise course of action. Could Mulberry take advantage of the situation? It’s certainly a possibility worth considering.