The year is 2011.
If we believe the newspapers the world is on the brink of economic meltdown, countries are looking as if they may default on their debt even the great United States has had it’s credit rating reduced.
Unemployment is up yet commodity prices like food, oil etc are rising fast.
You would expect a luxury fashion brand would just want to bury themselves in a warm duvet and wake up when the economic storm has passed but Mulberry are actually having a record breaking year !
Twelve months ago the company was valued at around £ 162 million but now is valued at over £ 1 billion as it’s share prices have rocketed.
On closer inspection it’s perhaps easier to understand why the company has bucked the trend and continues to make money in these trying times.
Firstly, luxury goods don’t necessarily suffer that much in times of recession. The people who can afford to buy them in the first place will still have money to buy them when many others might struggle.
Secondly, luxury goods by their very nature are made from the highest quality materials available on the market and created by expert craftsmen. This means you are getting a product that will last for years. Mulberry use very high quality leather which becomes richer over time making the bag look even better once it’s a few years old.
Finally, Mulberry have seemed to hit the right formula for creating handbags that the public adore. The Mulberry Alexa was the last bag that they created which caused a sensation when it was launched and even today it’s still a major influence on the sales figures. The Mulberry Carter bag is also attracting rave reviews and if it’s success is anything like the Alexa’s then we’d strongly recommend buying shares in Mulberry !!!









