Will Mulberry Defy the Downturn?
The luxury bag sector is slumping. But the British brand might just have an edge.
Anyone keeping even the most casual eye on retail knows that sales of personal luxury goods are declining– especially when it comes to handbags. Of course, lower sales can be attributed to macroeconomic pressures, aggressive post-pandemic price hikes and a global spending crisis. But there’s a lot more going on, too. Quality of materials is decreasing while prices soar. Customer service is lacklustre. And luxury consumers are increasingly savvy to the fact that many of the world’s biggest brands produce their items for a mere fraction of what they sell for. An Italian investigation into Dior this summer revealed that the company’s $2,7850 book tote costs just $57 to produce– under appalling working conditions.
Top this with some tone-deaf advertising– Balenciaga is still reeling from its 2022 BDSM-inspired campaigns featuring kids and SCOTUS documents on child pornography laws, a true one-two punch of poor taste– and, well, you’ve got a lot of potential customers thinking twice about shilling out on luxury bags. Especially when there are now interestingly designed, excellently made mid-tier options available (See: Strathberry, Aspinal of London, DeMillier). And don’t get me started on the predatory BS of the Hermès ‘journey’– in which potential handbag purchasers are manipulated into spending many thousands of dollars on trinkets, shoes and home goods before being offered the ‘right’ to buy a Kelly or Birkin bag (the prices of which vary between $10,000 to $50,000). Interestingly, the Succession-style 1% aren’t actually the ones purchasing these bags, which makes the trap of faux artificial exclusivity feel even worse. Slumping sales and a deepening discourse of discontent show that many bag enthusiasts are done with the smoke and mirrors. The luxury industry is facing a long-overdue reckoning.
I see an exception, though. Mulberry. Now, the British heritage brand’s revenue isn’t exactly healthy, with a reported 4% decline in annual sales for 2024. But it’s significantly less that the losses suffered by Kering, which warned of a 30% profit dip after failing to revitalise its star brand, Gucci. Even luxury behemoth LVMH (owners of Louis Vuitton, Fendi, Celine, Dior and more) reported a 5% drop in value this year. My hunch for why Mulberry hasn’t been hit quite so hard is simple: they don’t play dirty with their customers and, at least comparatively, operate with integrity and a focus on maintaining quality. This is also reflected in the company’s recent accreditation as a B Corp.
In a trading update this summer, Thierry Andretta, Mulberry’s former CEO (he was replaced with Andrea Baldo in September– more on him later) remarked: “While we achieved positive revenue growth in the first half of the year, Mulberry hasn’t been immune to the broader downturn in luxury spending experienced in recent months, particularly in the U.K. and Asia.” He went on to note that this decline was partially offset by positive trading in the U.S., where Mulberry is continuing to benefit from increased brand awareness and sales are increasing. As someone who spends a tonne of time in the U.S. and has quite a few pals on both sides of the ocean who appreciate a ritzy handbag (I’m talking one or two here, nothing wild), I wanted to dig in to better understand what’s working for Mulberry. So I conducted a bit of guerrilla consumer research over on Reddit’s bustling r/handbags sub (which is in the top 1% of subreddits by size) and asked bag-happy Redditors: “What is it about the brand, marketing, and/or the way Mulberry does business that drives so much love and loyalty among fans?” Here’s what I uncovered.
Quality & Craftsmanship:
Mulberry stands apart for offering high-quality, durable bags without the quite-so-eye-watering price tags of its high-fashion counterparts. While many luxury brands are suffering from declining standards and inconsistent materials, Mulberry has earned a reputation for producing bags that are beautiful and built to last. Whether it's the solid construction, thick leather, or reliable hardware, loyal customers consistently praise the brand for its craftsmanship.
“Their leather is better than literally anything LVMH.”– Redditor A
“I own 3 Mulberry bags. The quality is outstanding compared to modern LV (where we see prices rise multiple times a year while the quality is starting to suffer). Mulberry gets a lot of love on this sub, and it's well deserved.”– Redditor B
“I love Mulberry. It feels very prestige without making me broke and quality is consistent.”– Redditor C
“I can dump my Alexa in the closet and yank it out four weeks later, stick the organizer in it, and it looks perfect. The leather is thick and doesn't get scuffed, the hooks for the shoulder strap are SOLID, and the latches aren't flimsy, either. In terms of cost per use, I think my Mulberry and Coach bags are my best deals.”– Redditor D
“The problem is people associate luxury with high price tags and less durable materials. Can't anyone see it? I would rather carry Mulberry for years than Chanel that falls apart in a few short years and save $$$.”– Redditor E
“I see all these pictures of cracks and fraying and stitching and I'm sticking with the workhorse brands like Mulberry.”– Redditor D
Pricing & Value:
The brand strikes a balance between luxury and accessibility, offering high-quality bags at prices that feel more reasonable compared to other high-end brands. While still premium, Mulberry’s pricing is viewed as fair. Sales also make it easier for fans to score bags without breaking the bank.
“Their sales are great, which means you can get great quality for a reasonable price.”– Redditor F
“I think people stan Mulberry because the quality is about as good as it gets, while the price is somewhat reasonable, so Mulberry is a good value, in as much as anything luxury can be a good value.”– Redditor G
“I think Mulberry understood how to be top notch quality at an appropriate price point with matching customer service, I think their most expensive bag sits at around £1600 which is expensive but still attainable, and I'm not paying thousands as a premium for brand and marketing for an actually inferior product like some of the YSLs or Chanels. And even for less than £1000 I can get a full leather bag without obnoxious logos.”– Redditor H
Customer Service:
Shoppers describe their experiences in Mulberry stores as warm and welcoming, with staff that go above and beyond to make them feel valued—something customers find lacking in many other luxury brands.
“Every time I go to a Mulberry store it feels like I'm meeting friends - their staff are so lovely, the stores are welcoming and it's always such a warm atmosphere. I never get that feeling in a LV or Chanel or any other higher priced brand. Also Mulberry customer service is fabulous both in store and online, I know that when I spend my money there I'm buying a bag that will last me forever.”– Redditor F
“Mulberry sales assistants are the best I've had by far. I have a regular one that I love and we text often about new releases etc. Any time I go in to Mulberry (even in very comfortable clothes and looking a hot mess) I've been treated with respect, kindness and attention.”– Redditor A
Brand Heritage & Story:
Founded in 1971 in Somerset, Mulberry is built on deep British heritage and known for blending classic English countryside influences with the urban energy of London. This quintessentially British aesthetic, combined with that fact that the company is the largest manufacturer of luxury leather goods in the UK, resonates with anglophiles, especially in the US.
“They’ve been in the business 50+ years and have been known for quality and craftsmanship since. They still have their own factory in the UK although some styles are now produced elsewhere. I think Mulberry can’t be compared to other mid-market/premium contemporary brands due to its history and heritage.”– Redditor K
Innovation & Design:
Mulberry’s missing a beat here. While the brand excels in quality and craftsmanship, many Redditors feel it falls short on innovation and contemporary design. In a competitive market where brands like Loewe and Alaia continually push boundaries with bold shapes and textures, Mulberry has struggled to keep pace. Since the launch of the Alexa years ago, the brand has been slow to produce iconic, trend-setting bags, relying instead on nostalgic relaunches.
“Their leather quality is great (though it was even better in the past) but they have been struggling to design iconic bags ever since the launch of the Alexa years and years ago. Their issue is that by constantly raising their prices, they have outpriced many of their customers, while the lack of fresh, new "it bags" has prevented them from gaining enough new ones. That's one of the reasons why they relaunched the Alexa (another one being a 'nostalgia' trend, see Dior also relaunching its saddle bag).”– Redditor L
“Their designs, especially some of the more recent designs might not be super innovative but at least the bags are practical and fit for purpose (I always loved the adjustable shoulder straps that were actually long enough for the taller/more curvy person), and their iconic designs will always be recognisable.”– Redditor M
“All their designs feel a bit dated and are missing that edgy element that some of the other luxury and mid-range brands do.”– Redditor N
So, what’s next for Mulberry?
Despite the broader economic challenges impacting luxury spending globally, Mulberry has maintained its allure, particularly in the US. This suggests a nuanced success driven by consistent quality and fair pricing, as echoed by the brand's loyal customer base.
As Mulberry moves into 2025, the company stands at a crossroads. With impactful executive tenures at Ganni, Coccinelle, Diesel and Marni, new CEO Andrea Baldo is well-versed in navigating periods of international growth and market shifts. At Ganni, he was recognised for his strategic focus on retail network development, product innovation and a sharpening of the brand’s identity. This rich background bodes well for his potential to inject freshness and vitality into Mulberry while maintaining the brand’s quality, integrity and heritage. But without making bold design moves, the company risks stagnation in a fiercely competitive market where innovation distinguishes leaders from followers.
The narrative ahead for Mulberry needs to reflect that in a world of fast trends and faster declines, staying true to quality, value, and integrity can be the most avant-garde approach of all. As watchers of this storied brand, we may be witnessing the quiet renaissance of a luxury outlier. If Baldo can successfully balance heritage with innovation, and continue to resonate with loyal customers and new enthusiasts, Mulberry has the opportunity not just to survive the current downturn but redefine what resilience in luxury looks like.