The Mulberry Group in the UK is redirecting its attention from China and is now concentrating on the markets in the UK and the US.
The Mulberry Group announced on Thursday that it’s shifting its focus back to its roots as a British luxury brand. This means they’ll be realigning their operations in Asia, cutting back on their presence in China, and putting more emphasis on the UK and U.S. markets.
Like many luxury brands, Mulberry has felt the pinch from a decline in demand for high-end products in China. Their strategy to regain profitability comes on the heels of Burberry’s recent move to highlight its British heritage to attract customers again.
"We need to get back to where we came from and return to the spirit of Mulberry," said CEO Andrea Baldo, who took office in September. "It is also clear to me that for Mulberry to succeed, the business model needs to be simplified."
Luxury brands are facing challenges worldwide due to a shrinking customer base, rising prices, and economic uncertainty, with ongoing economic struggles in China further impacting retailers' profits.
Mulberry is also aiming to cut operating costs by around 25% annually compared to 2024, following a 27.9% decline in sales in the Asia Pacific region during the 13 weeks ending December 28. Overall revenue dropped by 18.3% in that timeframe, although sales in Europe and the U.S. saw an 11.1% increase.
Known for its luxury leather handbags, Mulberry has also appointed Billie O'Connor as its new finance chief.
In November, Burberry, which has been struggling financially, announced plans to streamline its operations and enhance profit margins.