Mulberry on Breakfast News this morning

#16
CPrincessUK said:
Well that is negative press for them then!
People will expect lower prices though. I think bags will be more heavily discounted in the sales and they will stop the massive price increases for a bit.
Click to expand...

Yes thats how I see it, negative press :nogood: and I am betting heavy discounts in the coming sale

It seems their profits have also probably been affected by Bruno's golden handshake "costs of the recent management change" It makes you wonder how much it cost them to rectify that mistake...........all very sad, hopefully the way forward will be better.
 
#17
Mulberrygal said:
Yes thats how I see it, negative press :nogood: and I am betting heavy discounts in the coming sale

It seems their profits have also probably been affected by Bruno's golden handshake "costs of the recent management change" It makes you wonder how much it cost them to rectify that mistake...........all very sad, hopefully the way forward will be better.
Click to expand...
Yup. Total disaster from start to finish. Hopefully lessons have been learned from this. He completely misunderstood the brand and its formally loyal customer base. Very sad but hopefully his departure will be good for mulberry lovers everywhere.
I have had enough of the ridiculous price increases in all brands to be honest.
 
#18
Is this quote from the letter and accurate, Moo?

"Following the recent change in management, we are focussing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers," said Godfrey Davis, Interim Executive Chairman.

If this is a direct quote, I can understand why the press have drawn the conclusions they have. If it's a misquote then that must be where the confusion has arisen.
 
#19
Wordsworth said:
Is this quote from the letter and accurate, Moo?

"Following the recent change in management, we are focussing on achieving sales growth through the reinforcement of our product offering at more affordable prices to meet the expectations of our loyal customers," said Godfrey Davis, Interim Executive Chairman.

If this is a direct quote, I can understand why the press have drawn the conclusions they have. If it's a misquote then that must be where the confusion has arisen.
Click to expand...
It's not a private letter, it's a trading update and publicly available. That specific excerpt on its own is a bit misleading, but not if you read the whole thing in context.

Since the appointment three weeks ago of Godfrey Davis as Interim Executive Chairman, a review of operations and strategy has been undertaken with the management team. The primary objective is to reinvigorate sales by the introduction of more affordable new product.
Click to expand...
 
#21
Mooshooshoo said:
Sorry Ladies,

The press have both mis-quoted and misinterpreted the letter sent out to share holders. There will be no price cuts. The intention is to slow the expansion programme overseas, consolidate the current position and introduce some new lines in the middle price range.

Whether you like the current prices or not, it would be a very poor decision to cut prices, devaluing and undermining the brand. The current interim exec Godfrey Davis managed Mulberry through it's most successful period and is looking to strengthen the brand, not weaken it.

:smile:
Click to expand...

I absolutely agree. Why would any of you want to devalue the brand? I'd be furious if they sold classics like the BW at a lesser price. I don't even agree with heavily discounting bags. All that serves to do is cheapen the brand as who will buy the bags at full price when others are buying them a couple of months later for hundreds of pounds less. They need to hold their nerve.
 
#22
Press now saying that the new ranges due in June will be cheaper than originally intended, £500-700.
I wonder what they were supposed to have been? To be coming out in June these bags must already be in production, so it doesn't sound like they are about to design a cheap range but rather sell new styles at a more sensible price.
 
#23
Silversun said:
It's not a private letter, it's a trading update and publicly available. That specific excerpt on its own is a bit misleading, but not if you read the whole thing in context.
Click to expand...

Thanks for the clarity, I haven't had time to do much reading on this today.

I wonder if the new product line will be classic styles in different materials (e.g. non leather), or if they'll go for new designs like the Cara bag. The latter might be more difficult without a creative designer, but they could do more guest ranges. (If it's someone from TOWIE, I'm out :lol:)

I guess they could still have a problem selling classics like the Bays if they leave those at current prices. They've now acknowledged that the core customers don't like the prices. If they don't alter them on the core product and only introduce new lines at a lower price - there's no guarantee the core customers will like and be willing to pay for the new lines. At the old price point the core customers had the choice between new style or old classic, at similar price points.

Let's be honest though, outside sales prices don't generally go down...when was the last time we had deflation!

Times remain interesting for Mulberry!
 
#25
Mooshooshoo said:
Sorry Ladies,



The press have both mis-quoted and misinterpreted the letter sent out to share holders. There will be no price cuts. The intention is to slow the expansion programme overseas, consolidate the current position and introduce some new lines in the middle price range.



Whether you like the current prices or not, it would be a very poor decision to cut prices, devaluing and undermining the brand. The current interim exec Godfrey Davis managed Mulberry through it's most successful period and is looking to strengthen the brand, not weaken it.



:smile:
Click to expand...


This is exactly what I thought when I heard it this morning! I assumed they meant introducing cheaper bags instead of doing an across the board price cut.. That would not make sense at all. I would guess there will be big discounts in the summer sale too.
 
#26
Mooshooshoo said:
Sorry Ladies,

The press have both mis-quoted and misinterpreted the letter sent out to share holders. There will be no price cuts. The intention is to slow the expansion programme overseas, consolidate the current position and introduce some new lines in the middle price range.

Whether you like the current prices or not, it would be a very poor decision to cut prices, devaluing and undermining the brand. The current interim exec Godfrey Davis managed Mulberry through it's most successful period and is looking to strengthen the brand, not weaken it.

:smile:
Click to expand...

I agree. It makes sense to introduce a mid range level of goods, with prices to match; to cut the full prices of current stock would definitely devalue the brand name.
 
#30
I hope the "new" range won't be that they simply bring back some of the discontinued classics eg ledburry @ the more "affordable" price of £500. Or selling some of Cara's @ the "introductory" price level.
 
You must log in or register to reply here.
Top
Back