Luxury plans: Mulberry wants to expand in Asia and become less Brit-oriented, while markets turn off Hugo Boss enthusiasm

Mulberry is aiming to expand their business in the Asian markets and become less Brit-oriented, while Hugo Boss is strongly confident of a remarkable potential expansion, despite the current scepticism of the business markets. Let’s talk about things gradually though. While giving a speech at the E-P Summit 2018, a Milanese event, Thierry Andretta, chief executive officer of Mulberry, pointed out that the future playground of the brand is Asia. In fact, at present the company’s turnover is mostly focused on domestic sales (68% of them are carried out in the United Kingdom): therefore, the aim of the brand is to boost their international sales, to account for 50% of their turnover in 3 years and for 60% in 5 years. How is it feasible? By developing their business in the Far East, where Mulberry is currently running “29 stores, which are bound to go up to 31 over these days” (quoting the words of the CEO, reported by MFF). The brand is planning to enhance their commercial role in Hong Kong, Taiwan, Korea, China and Japan. Likewise, Hugo Boss has got great plans about the future. While presenting their latest industrial strategy, the German fashion brand has clearly pinpointed a plan to augment their revenues by 5 to 7% until 2022. “We want to be more competitive than the market”, emphasized chief executive officer Mark Langer, while illustrating the company’s plans, based on reduction of costs and collections as well as on clients’ customisation and business development in the Far East area. Yet, the German brand must persuade the markets and gain their trust now. In fact, the Frankfurt Stock Exchange, where Hugo Boss is listed, did not react positively. MFF emphasize that the stock dropped by 6% over the last year, whereas the Financial Times reports that the stock declined by 2% after the plan announcement.   

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