Mulberry Profit Warning

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www.theguardian.com/business/2014/jan/29/mulberry-handbag-price-war-profit-warning

From this morning's Guardian - interesting that they have been re-positioning themselves increasingly high end and that it doesn't seem to be working for them

Too many Osprey bags in TK Maxx - I know it shouldn't but it puts me off....especially when someone asks if that's where you got it because they've seen loads there.

One of the first things I learnt in business school was that it is extremely difficult for a brand to move more upmarket. Brands can drift down intentionally to make money in the mass market but not easy to go the other way.

What a surprise...

You can't nigh on double the price of a Bayswater in five years and say "we're a high end brand now". The definition of high end isn't just "eye wateringly expensive". You need the quality and... covetable-ness to match.

I agree they've been greedy. And alienating ordinary women (with their stupid pricing and increasingly ugly/poor quality bags) was a BIG mistake.

Yep. All they can hope for now is the wealthy but there are far more attractive brands out there also competing for a bite of that pie. Their bread and butter old customers don't want to play ball anymore given the piss take price jumps.

I wanted a Bayswater for my 40th too! In the space of about a year they increased in price by £500!?!?! Just totally taking the piss. And they aren't even made in the UK anymore.

I have a Mulberry bag which I love, but it's my every day bag and has been for years. No visible logo and I don't even know what style it is, it's discontinued and I can't seem to see it online.

Are there any clued up posters who could tell me if I took a photo and put it on my profile?

Stick it on and we'll have a look. No promises, mind . I'm sure that someone will get it.

I'll take a look too, I like identifying bags. Used to spend way too much time on the Purse Forum.

I have a Mulberry Darwin tote that I bought ten years ago. I think they look best when they are worn in, especially the metal work on the Darwin styles.

I wanted an everyday, do it all bag.

So effectively one bag has given me a decade of value, not so great for Mulberry's turnover. It still looks great, no OTT logos. Slight play dough grease stain on the inside.

They are far too expensive now (and don't justify being so expensive).

I have to admit I have NEVER considered buying a Mulberry full price- I go to Bicester or if i'm up north visiting family Cheshire Oaks. I use my nieces student discount which gives me another 10%. I brought a Antony in June which has been used pretty much every "casual" day since and is still in good nick. Obviously you have to look after these things- if it rains, my coat comes off and covers my back if I forget my brolly.

TheCrackFox- are you sure your not looking at the new design? The double zip Bayswater tote?

Theres the classic Bayswater and then the new design that has been around since September (?)

A colleague of mine used to have a few Mulberrys, but lately swore no more after a quality issue left her virtually shouting in the Mulberry shop in order to get their attention. It would seem she was off putting to the other customers in the shop so they finally agreed there was an issue with the bag. Then they took MONTHS to repair it, no replacement offered despite it being relatively new.

I have a few and am very happy with them but, like others, mine are from Bicester or Cheshire oaks as £1000 is more than I want to pay for a handbag

Here's a photo of my unidentified bag. I think if you click on it, it's the right way up. Any ideas please?

If that's not a decent enough photo here's a link instead
s27.postimg.org/l0k5wim1v/Mulberry_bag.jpg

Oh that is old school. Does it have tartan lining?

'Fraid I can't help you there. I may even be before the time that Mulberry started "naming" their bags.

Oh, yes it might be.
No it doesn't have a tartan lining. Inside of bag is completely unlined except for a small pouch pocket on the bag inner wall, that's Mulberry fabric and has the little metal tree on it.

Two people admired it last week, although one did ask 'is it Mulberry?' and then said she asked because she saw me get out the matching purse and that is branded on the outside.

I got it brand new from a proper department store in the UK, was in their sale but just a regular percentage off, not discontinued.

I don't recognise that style either, sorry. It looks in decent nick even though it s vintage.

I too always coveted a bayswater. I've just got a big ticket job and thought I would treat myself but they are too expensive. I don't think they are worth the price tag tbh.

I think this idea has backfired there were plenty of people who could stretch at a push to the 500 quid mark for a good quality bag. Not many can manage a £1000 and why would you want to for mulberry…..

I'll head back off to oral kiely, knomo (my new find) and radley as that is a price point I'm comfortable with.

Oh crikey, my best bag bought from new is now vintage
But yes, it is in excellent condition considering that I've used it probably 90% of that time. Anyway, it'll be used for ever and a day so it's turning out to be good value.

It was between that and a Bayswater and I chose that one as I hadn't seen another one like it - which makes it a bit odd that I'm now trying to 'identify' it

that's a very pretty bag! I'm not sure what it's called, but I think the leather is called congo. You could try asking at the purse forum - someone there is bound to know

I never liked Mulberry bags as I didn't think the leather was very good quality, but I recognise that they sold well in the £200-500 bracket.

Now they've pushed themselves into the luxury bracket they really can't compete, and they've priced themselves out of their own loyal customer base.

What can they do now they have a profits warning: if they drop the prices across the board, they're going to look incompetent; if they stick with them, they may go under.

Management fuck up extraordinaire.

It doesn't help that I read an interview with Bruno Guillon saying that the reason their prices had gone up was that the price of leather had increased. Treating your clients as stupid is always a grave mistake.

Enrique try googling Mulberry Peggy

Bingo!
Thank you so much it had been bugging me Am smiling now.

The leather is actually Oak, although Congo seemed to ring a bell.

If you look on this link for ebay tinyurl.com/n87eypu there are internal photos too.
Being completely honest, the leather is brilliant quality. I've never covered it in the rain and only polished about three times over the years. It's the best bag I've ever had.
Second best is an Anya Hindmarch, which has lots of good features, especially the internal clip for your keyring, but is a bit too huge for daily use.

But that's not the point of the thread, sorry
I think Mulberry have suffered since being sold, buying into the hype of the 'statement' bag and the belief that they're in the market for people who absolutely must have each season's new design.

I don't see them in that niche at all. Rather a really good staple that becomes like an old friend. Smart, functional and dependable. That's where I think they ought to be positioned really. Something that would sell well worldwide off the back of being quintessentially British rather than being at the whim of fashionistas.

Glad you got an answer!

Btw, Oak is the colour and Congo is the print on the leather.