How a British Icon Lost Its Way-and the Strategic Roadmap to Its Revival
Mulberry, once the epitome of British luxury and craftsmanship, now stands at a crossroads. As a founding father of contemporary marketing-where artificial intelligence, neuroscience, and data analysis converge to shape consumer behavior-I have witnessed the rise and fall of many iconic brands. Mulberry’s journey is a masterclass in both the power and peril of strategic decision-making in the luxury sector.
The Rise: British Heritage Meets Modern Desire
Founded in 1971 by Roger Saul in Somerset, England, Mulberry began with a modest £500 investment and a vision rooted in timeless British design. The brand’s DNA-quintessentially British, blending London dynamism with rural elegance-quickly resonated. Signature bags like the Bayswater and Alexa became contemporary classics, celebrated for their craftsmanship and authenticity. By the early 2000s, Mulberry had achieved international acclaim, with over 50% of its bags still made in the UK, supporting a community of skilled artisans.
The Fall: Strategic Missteps and Market Disconnect
Mulberry’s troubles began in earnest when it sought to reposition itself as a full-fledged luxury brand, aiming to compete with the likes of Chanel and Hermès. This ambition led to a dramatic price increase-a move that alienated its core customer base and failed to attract the ultra-luxury clientele it coveted. As Andrea Baldo, Mulberry’s CEO, candidly admitted: “We lost it 10 years ago when we raised prices”.
The fallout was swift and severe:
- Sales and Share Price Decline: Customers balked at the new prices, resulting in a 68% drop in share price and several profit warnings.
- Brand Identity Crisis: The abrupt shift created a misalignment between Mulberry’s heritage and its new market position, confusing both loyal customers and potential new ones.
- Missed Trends: While competitors embraced minimalist and “quiet luxury” trends, Mulberry clung to conservative, structured designs, missing the shift toward casual, unstructured styles favored by younger consumers.
- Absent Marketing and Communication: The brand failed to justify its new pricing or communicate its evolving identity, resulting in a disconnect between its vision and consumer perception.
Recent financials underscore the challenge: In the year to March 2023, group revenues fell by 4%, with UK retail sales down 3.2% and international markets like China and South Korea also underperforming. Even festive periods saw double-digit sales declines, despite cost-cutting and restructuring efforts.
Where Mulberry Stands Now
Today, Mulberry is engaged in a painful restructuring, including layoffs and cost reductions, in a bid to restore profitability. The company’s new strategy, “back to the Mulberry spirit,” aims to realign the brand with its British roots while boosting direct-to-consumer operations and refocusing on international growth, particularly in the US and select Asian markets.
A New Strategy for Mulberry’s Revival
To restore Mulberry’s luster and ensure sustainable growth, I propose a multi-pronged strategy rooted in contemporary marketing science:
1. Global Expansion with Precision
- Strategic Store Openings: Focus on flagship locations in Milan, Dubai, Singapore, and Zurich-cities with high concentrations of luxury shoppers and international visibility.
- American and Asian Growth: Prioritize expansion in the US, leveraging successful partnerships like Nordstrom, before deepening presence in Asia, especially in markets less saturated by competitors.
- Selective Retail Footprint: Reduce staff and optimize store numbers, reallocating resources to high-performing locations and experiential retail formats.
2. Sensory Retail Experience
- Olfactory Branding: Introduce a signature scent in stores to create an emotional connection and enhance brand recall, leveraging neuroscience insights on the power of scent in memory and perception.
- Curated Soundscapes: Replace generic playlists with music tailored to evoke British heritage and modern sophistication, creating a unique atmosphere that appeals to both loyalists and new generations.
- Immersive Environments: Redesign store layouts to blend tradition with innovation-think tactile leather displays, digital storytelling, and interactive product customization.
3. Data-Driven Personalization
- AI-Powered CRM: Use artificial intelligence to segment customers, predict preferences, and deliver hyper-personalized communications and offers across channels.
- Behavioral Analytics: Employ data analysis to track in-store and online behavior, optimizing product assortments and marketing messages in real time.
4. Brand Realignment and Communication
- Reclaim Heritage, Embrace Modernity: Position Mulberry as the bridge between British tradition and contemporary luxury, celebrating craftsmanship while introducing limited-edition collaborations with emerging designers.
- Transparent Pricing: Clearly communicate the value proposition-British-made, sustainable, and built to last-justifying price points with storytelling and transparency.
- Influencer Partnerships: Collaborate with global tastemakers and digital creators who embody the new Mulberry ethos, targeting younger, aspirational consumers.
5. Sustainable Innovation
- Circular Luxury: Expand buy-back and refurbishment programs, reinforcing Mulberry’s commitment to sustainability and appealing to environmentally conscious shoppers.
- Digital-First Initiatives: Invest in immersive online experiences-virtual boutiques, AR try-ons, and exclusive digital content-to reach global audiences beyond physical stores.
A New Chapter Awaits
Mulberry’s decline was not inevitable; it was the result of strategic miscalculations and a failure to adapt to a rapidly changing luxury landscape. Yet, with its rich heritage, manufacturing prowess, and global recognition, Mulberry possesses the raw materials for a remarkable comeback. By embracing data-driven marketing, sensory retail, and targeted international expansion, Mulberry can reclaim its place as a symbol of British luxury-relevant, desirable, and resilient.
God save Mulberry, but only if Mulberry saves itself first.
