UK luxury fashion group Mulberry defended its plans to move further upmarket, saying it was crucial to expansion plans in Asia, where local shoppers and outbound tourists are still spending heavily on top-end lines.
Mulberry, known for its Bayswater and Alexa handbags, makes over 80 percent of its sales in the UK and continental Europe, and has been hit hard recently by weak consumer spending there, as well as cooling demand from Chinese shoppers and tourists. The group was having a tough time because it did not have a high enough profile in Asia, and was addressing that by opening more stores in the region, according to CEO Bruno Guillon.
The company, which opened 17 stores in the year ended March, plans to open 15-20 in its new financial year, pinpointing prime locations and flagship stores in Asia and North America, where it has 42 and 6 stores respectively out of a total of 118.
(Source: CNBC)