Village England enters the middle as Mulberry moves upmarket

Just in time for London Fashion Week, an art gallery was transformed into a pop-up shop to showcase the new line of Village England leather handbags. Founded in 2012, Village England is establishing itself as a brand for women who favour classically stylish handbags in the affordable luxury price range.

Co-founders Julia Dobson and Eddie Knevett set out to design a leather handbag 'you can fall in love with but isn’t so precious that it can’t be thrown in the back of the car'. In other words, the product is fashionable yet functional, a handbag for walking downtown, taking the Tube or driving into the country.

The co-founders have a background in fashion marketing, and they see a promising opportunity in affordable luxury as Mulberry moves upmarket into premium luxury leather bags, priced as high as £2,500. Lately, Mulberry's upmarket momentum seems to be stalled, with the firm issuing profit warnings even as it eyes the buying power of Asian status-seekers who covet British luxe brands with tradition and cachet.

Mulberry's upmarket move leaves a gap in the market, which Village England aims to fill. Most of Village England's handbags are priced below £300, although some (like the Elsworth Black Tote featured in House of Fraser) carry price tags around £395.

Sociable from the start, Village England is building its brand in social media, especially important for building buzz after its pop-up shop shuts. Click to its Facebook page, Pinterest board or Twitter feed to see the brand's messages and its growth trajectory.

Holiday retailing: 2013 results

Sales at John Lewis rose during the 2013 holiday season--due, in part, to its successful integrated marketing campaign based on a charming bear and the hare holiday advert.

This advert attracted more than 11 million YouTube views in 7 weeks. The retailer profited from sales of related merchandise, including stuffed bears and hares and a book featuring these characters. John Lewis customers also made more purchases by mobile than ever before, especially during the clearance sales.

House of Fraser also enjoyed a successful holiday season, with solid sales of high-end brands, increased online buying, and far fewer deep discounts than most competitors. As a result, the retailer's profit margins remain healthy.

Debenhams received far more online orders than in previous years, but still warned of lower sales and profits. Despite investments in store renovations and last-minute price-related promotions, the retailer struggled to attract the revenues it expected during the holidays.

Many retailers opened early for after-Christmas clearance sales, with shoppers crowding in for big bargains. But online retailers really benefited, because many shoppers browsed Internet shops on Christmas day (from computers, tablets, and mobiles), in preparation for Boxing Day sales.