Mulberry, the renowned luxury fashion house, has recently implemented a global pricing alignment strategy aimed at achieving consistent pricing for its products across all markets. Initially, the focus will be on leather goods, which account for a substantial 90% of the company’s revenue, with plans to extend the strategy to other product categories in the future. The main objective behind this strategy is to promote transparency and consistency throughout Mulberry’s global distribution network.
CEO Thierry Andretta emphasized that the goal of establishing a global price has been a long-standing ambition for the company, and with their 50th anniversary approaching, they consider it particularly important to eliminate any international price discrepancies. Under the new strategy, Mulberry will align international prices with the brand’s UK prices, inclusive of any applicable local sales taxes or duties.
This new approach has already proven successful when Mulberry collaborated with Acne Studios in November 2019. Customers responded overwhelmingly positively, further solidifying the decision to implement the global pricing alignment strategy. Mulberry’s transition to a digitally-focused brand has facilitated this shift in pricing, as a majority of sales, approximately 95%, now come from its direct-to-consumer omnichannel operations.
The unveiling of this pricing alignment strategy comes at a time of great concern for British businesses, as they face the adverse impact of the Covid-19 outbreak. Mulberry, like many others, has experienced a significant decline in store sales in March due to the closure of all UK stores and factories. Consequently, the brand heavily relies on its online shop for generating revenue. Despite these challenges, Mulberry expects a minor loss in the second half of the year attributable to the pandemic. Nonetheless, the implementation of the global pricing alignment strategy represents a significant step towards upholding transparency and consistency for customers, regardless of their preferred shopping channel with Mulberry.