Mulberry is introducing its new line of Tessie handbags that are a more affordable option than many of the other handbags the company has offered recently.
The Tessie handbags are available in satchel, hobo, and tote styles in black, poppy red, oxblood, and oak colored soft-grain leather. The new handbags do not have the large Mulberry turnlock that almost all recent handbags have had. Instead, they feature a small gold square embossed with the image of a Mulberry tree. Buyers can also choose a midnight blue croc stripe suede clutch or satchel.
Mulberry says that despite the lower prices, it has not sacrificed quality craftsmanship. The company created the Tessie collection as a way to return to the practicality and classic silhouettes of its early handbags.
Mulberry has been experiencing financial problems since the departure in March of CEO Bruno Guillon after only two years leading the company. Guillon had previously served as managing director for Hermes.
While Guillon was CEO, Mulberry raised prices to try to compete with luxury brands such as Prada and Fendi, but the handbags became too expensive for existing customers, which lowered profits. Mulberry has had two recent profit warnings and falling share prices. Godfrey Davis, Mulberry’s non-executive chairman and previous CEO, is acting as executive chairman until the brand chooses a new CEO.
Emma Hill stepped down from her position as creative director in June 2013. The line of Tessie handbags was designed by Mulberry’s in-house design team. The company is still searching for a new creative director.
The new more affordable handbags are an effort to promote the company’s growth. While the Tessie bags are less expensive, they still cost significantly more than many “entry-point” luxury handbags offered by other popular designers.
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