When it comes to luxury brands, the way the companies are held in the hierarchy can be rather funny. Marks & Spencer is not really what I think is “chic” but then it is at the top with a net worth of 6.1 billion Pounds, on the FTSE-100 index. Burberry, the luxury giant and one of my favourite brands stands at 5 billion pounds.
Mulberry the little bag company from Somerset stands at 520 million pounds and is nowhere close to these giants. However, the profits of the company are soaring high after it began to sell chic handbags to the ultra rich in Asia and Middle East. At 800 Pounds a bag, the products are quite drool-worthy and very difficult to buy even for those who are well off.
However, this exclusivity that comes with the price has been the factor for the company’s growth which suggests that luxury companies need to price their products high in order to get profits. Philip Dorgan, an analyst at Altium Securities reveals that the profits of Mulberry may hit a high f 15 million Pounds by next year, and if that happens it just shows that a company need not be huge and big in order to have better profits in the luxury world.