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Mulberry luxury goods maker sees profit treble

Mulberry luxury goods maker sees profit treble
Image copyright Getty Images Luxury goods company Mulberry sees profits treble following switch to focus on more affordable products. The company, best known for its leather handbags, saw annual pre-tax profits in the year to 31 March jump from £1.9m to £6.2m. Sales rose by 5% to £155.9m. Mulberry has struggled in recent years as a result of the company's failed attempt to compete with higher end brands, such as Prada and Fendi. Chief executive Thierry Andretta said it had made "significant progress". Mulberry has spent the past two years introducing new designs and bringing in lower priced bags in the £500 to £800 range. This followed ill-fated efforts to compete at the top end of the market offering bags priced at £1,000 and more. However, the shake-up in strategy appears to be working. Mr Andretta said: "We have built a strong foundation for future growth as a result of the investment made in product design and development as well as our omni-channel infrastructure.

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Economic contribution The direct value of the UK fashion industry to the UK economy is estimated at £26bn, up from £21bn in 2009, according to data from Oxford Economics, the consultancy, published by the British Fashion Council. This represents an increase of 22 per cent in nominal terms between 2009 and 2014. If the indirect support for supply chain industries and the induced spending of employees' wages are added in, the total contribution from the UK fashion industry is £46bn.Oxford Economics estimates that fashion’s wider contribution to the UK economy in influencing spending in other industries has risen from £37bn in 2009 to over £46bn in 2014 - a 23 per cent increase.The UK fashion industry is estimated to support 797,000 jobs (down from 816,000 in 2009 which reflects an increase in productivity in the sector). Fashion is the largest employer of all the UK's creative industries. Source: The British Fashion Industry and London Fashion Week Facts & Figures, BFC, Feb 2016.

Luxury Brands Focus On “Instagram Generation” Ultra Rich Customers It’s a brave new world out there, though not the one Aldus Huxley envisioned. Technology is all-pervading in more ways than we actually realize. While browsing the web you always come across headlines with celebs touting the latest and greatest. Whether it’s a reality star, a Hollywood A-lister or a singer, everyone knows what they’re doing, where they are, what they’re wearing – oh, and what they are driving. The paparazzi will soon be a thing of the past. Prada seeks younger customers in bid for growth Image copyright AP Italian luxury fashion group Prada has predicted a return to growth as it seeks to connect with younger customers through online sales and flexible pricing. First half profits fell 25% to €330m (£282m) due partly to falling demand in China and Italy. But Prada said it saw 2016 as "a turning point." It has been reviewing prices, product variety and online marketing to appeal to more customers.

Britain Now World's Cheapest Luxury Market LONDON, United Kingdom — In the wake of Britain's vote to leave the EU, which pushed down the value of the pound about 10 percent against the euro, the country has become the cheapest luxury goods market in the world, helping to buoy British luxury labels, at least in the short term, according to new research by Luca Solca, the head of luxury goods at Exane BNP Paribas. "The Brexit vote has made the UK the cheapest market in the world for luxury goods,” Solca told BoF. “A weak British pound will boost travel inflows to the UK, helping British luxury goods players like Burberry, Mulberry and Jimmy Choo." While luxury goods companies are not expected to raise prices in the UK in the coming months — at least until there is more clarity around exactly when and how the country might exit the EU — Britain should see a boost from tourist inflows and spending due to its weakened currency.

Burberry becomes first luxury brand to personalise on Pinterest Burberry has become the first luxury brand to offer customers a personalised experience on Pinterest, letting them create customised make-up boards to promote its new ‘Cat Lashes Mascara’ product. The personalisation works by asking visitors three questions. Their answers, along with their initials will be combined to create the personal Pinterest board. The partnership allows Burberry to benefit from Pinterest’s features and data to cater its posts to individuals though personalised and monogrammed content.

Burberry New London Fashion Week Home Picture credit: Burberry/Mario Testino 16 August 2016 Katie Berrington BURBERRY is bidding farewell to its Kensington Gardens base for the forthcoming show on September 19, the brand has revealed this morning. From Bankruptcy to Billions: Fashion’s Greatest Second (and Third) Acts United Kingdom — In fashion, nothing is permanent. Even when creative directors flee their posts or companies shutter their operations, opportunities for reinvention are often waiting just around the bend. Indeed, some of today's most successful fashion businesses went through years — and sometimes decades — of financial turmoil before achieving the level of global success they enjoy today. Rise: Gabrielle “Coco” Chanel opened her first store at 21 Rue Cambon in Paris in 1910. By the 1920s, the designer’s inimitable and thoroughly modern design point of view made her a fashion force. Her perfume, Chanel No. 5, which was introduced in 1921, made her a globally recognised icon.

Prada Sales Slide on Weak Demand MILAN, Italy — Prada SpA reported the first decline in opening-half sales since its 2011 listing as weak demand in China and terrorist attacks in Europe continued to weigh on the Italian luxury-goods maker. Revenue fell 15 percent to €1.55 billion ($1.8 billion), the Hong Kong-listed company said in a statement Friday, missing the €1.65 billion average analyst estimate compiled by Bloomberg. Earnings also declined, though by slightly less than analysts predicted.

Louis Vuitton Targets Middle-Income Shoppers With Perfume Launch PARIS, France — Louis Vuitton has launched its first perfume range since the founding merger of its parent LVMH in 1987, targeting middle-income shoppers amid a downturn in luxury spending. This week's launch is an important step for the French brand as it tries to strike the delicate balance between increasing its number of more affordable goods while retaining its cachet. Until now, shoppers on more modest incomes have only been catered for by Louis Vuitton's key chains and very small leather goods, costing around €200-300 a piece.

Fashion e-tailer Myntra claims $1-bn sales Leading fashion brands e-tailor Myntra on Monday claimed it has crossed $1-billion (Rs.6,720 crore) in sales after discounts in July. "We have crossed $1-billion run rate in annualised GMV (Gross Merchandise Value) post discounts in July," Myntra Chief Executive Ananth Narayanan told reporters here. GMV indicates total sales in online retailing for merchandise sold through a particular marketplace over a specific timeframe. Gucci slammed for ‘irresponsible’ ad featuring ‘unhealthily thin’ model The ad, which appeared on The Times’ website in December last year, included several photos of models posing. The ad was investigated after one complainant argued the models were unhealthily thin, making the ad irresponsible. Gucci said the ads were part of a video that portrayed a dance party and was aimed at an older, sophisticated audience.

Getting consumers to buy luxury products on Amazon.com NEW YORK, United States — In 2012, Amazon debuted its first fashion advertisement. It was reminiscent of an American Vogue spread and featured a dolled up Chanel Iman in a taut, alert pose. Printed across her shins was the phrase “Smart is Beautiful,” a tagline still employed by the glossiest division of the e-commerce and cloud computing giant, which generated combined revenues of $107 billion in 2015.

Economy Of Fashion: How Different Trends Reflect The Financial State It's common knowledge fashion is cyclical in nature. The concept of “newness” in fashion doesn't refer to the premiere of a trend, but rather its revival. Why fashion cycles in this manner, however, is less obvious.

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