If Prada Marries Into China

"If you can't drain the tide, you can only become obscurity."

This is a summary of life in seventeenth Century by British statesman and diplomat Chestfeild (Chesterfield).

However, even today, it is more appropriate to use this phrase to describe the social attractiveness of the fashion industry.

It's a big business.

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Small independent

Agencies, and then

Antique buildings, there are always many products in the market to meet the wealth of people, all tastes of the crowd.

Some famous fashion brands in the market, such as

Relatively speaking, these brands may only account for a small proportion of the consumers, but the wealthy buying class is willing to pay high prices for these brands.

If will

Compared to a beautiful woman, there is no doubt that she is a queen who controls everything.

In the movie the devil wears Prada, Merrill Streep shows this temperament most vividly.

The fashion demons in the movie are fastidious, Leng Ao, domineering and pursue everything perfectly.

In the eyes of fashion people,

Born with aristocratic blood, from the very beginning, Mario.

In order to pursue the best quality, the brothers choose the best raw materials from the world and hand their leather products to the highest level factories.

Because of its extreme quality, Prada's leather products have been sought after by European royalty.

In 1978, the haughty brand was in crisis, and Miuccia Prada took over the family business.

With a keen perspective of design, the blood flowing against the trend is used to integrate opposing elements.

Perhaps, it is Miuccia Prada's very creative design that saved Prada from the brink of bankruptcy.

Prada is coming back to life, Miuccia Prada will

It is regarded as the life and soul of an enterprise.

Since 1998, Miuccia Prada's husband,

A series of mergers and acquisitions have been launched.

For example

Prada has become a fashionable empire that can compete with LV and Chanel, but it is precisely because of too much emphasis on design that Prada is in an unprecedented crisis.

Why did Prada suffer huge losses for a long time?

Prada has been revolved around designers, and this is very easy to go to extremes.

Miuccia Prada once said, "I like to be different, and even expect to mix in the design into political ideals. This is totally contrary to the natural business nature of the fashion industry."

This fully shows her commercial limitations as a Prada designer, although it caters to the tastes of small audiences, it has more or less affected its business structure.

Miuccia Prada also has a strong preference for the brand named after her nickname.

This young second-line brand should not be the focus of attention of this family leader. However, due to the preference of family heirs, MIU MIU is regarded as the core brand in Prada.

When design conflicts with business, how to choose?

Prada has been making difficult choices in recent years.

In the fashion industry, Jill Sande and Helmut Ron are Pope class figures, but like Miuccia Prada, they are persistent in their design ideals and regard their works as works of art.

But in fact, they worked hard.

Out of the art sense of clothing, there is no market.

In 2004,

The sales volume is only more than 200000000 euros, which is only 15% of Prada group's sales, but its losses are as high as 73 million euros.

When a strong CEO betray is in contradiction with the same strong designer, it is staged.

A good play left.

Mergers and acquisitions have made Prada an unprecedented scale, but every year

Most of the sales revenue of the two core brands is being filled.

The debt black hole must finally be sold, and only the two brands can be sold.

Have encountered the same contradiction as Prada.

It has bought one.

Although the designer's work is creative, it is hard to escape the loss of fortune.

They usually insist on running their brands in their own way, and do not want to change the pace of their design products according to market changes. Once they are put into creative work, they often forget their food and sleep and work all night.

In the eyes of businessmen, these talents

They are lovely and hateful. They can not be controlled, but they are very important.

In fact, it is unwise to indulge designers blindly, but when the contradiction breaks out and designers leave home, the consequences become unmanageable.

Betley has been looking for an ideal brand structure, in his vision, in the spire of the core brand of Prada, the middle of the tower.

And build into a solid Pyramid.

From the perspective of formation, it seems to be indestructible, but in fact it is very fragile.

In the Pyramid strategy of L'OREAL, the tower bottom brand is the most popular mass brand, and the bottom of Prada Pyramid is a niche brand that has no market. What they bring to Prada is not profit, but endless running in and communication between design and business.

Straightening out the relationship between brands can avoid direct competition, waste resources, damage brand image, and help form an overall advantage.

When brand can not form complementarity and resources can not be fully integrated, the multi brand strategy of enterprises is failure.

Bette tried to build Prada into a multi brand luxury empire through acquisitions, but the huge internal friction brought Prada into a black hole of up to 6 billion 200 million yuan.

In order to alleviate the pressure brought by huge debts, Bette Li gradually sold its industry and focused on building Prada and MIU MIU brand.

If Lu Qiang bought

We might as well make a hypothetical hypothesis: what will happen to her if Prada marries into China?

If you think about this topic fully, you will find it very interesting.

In 2008, with the outbreak of the global financial crisis, Prada had a very difficult time. Despite the huge debts, the Prada family had no intention of selling shares.

As of July this year, the Prada family still held 94.89% of the shares, and 5.11% of the shares were held by banks.

Over the past few years, Prada has been seeking listing, and has put forward five listing plans, but it has finally been stranded because of the bad market.

Thanks to the slowdown in the recession, Prada's operating income rose to 930 million euros in the first half of this year, up 29% over the same period last year, and the market environment improved significantly. Prada once again launched the listing plan.

Against this background,

We plan to buy Prada 20% with us $450 million.

However, in 2009, sales of the company were less than 4 billion yuan.

In view of this, the acquisition of Prada by Cox is only a wishful thinking.

However, the media said Prada's refusal to buy the company is worried that the reason why "giving the Chinese people the quality inspection and the style will be worse" is somewhat credible.

stay

Why don't China have a decent luxury when China conquests the land?

?

Is it because it doesn't attach importance to design and quality?

Luxury consumption always pays attention to the origin, even if the process of globalization makes the origin of the origin fade away gradually, in the field of luxury goods, the origin is still playing a key role in the brand, and the premium it brings is quite astonishing.

Consumers can tolerate Prada for designers, but they are very resistant to it.

"

For a long time, Chinese products are synonymous with "cheap goods" in the eyes of global consumers. This inherent impression is usually linked to "poor quality and no sense of design".

Therefore, even changes in product labels will cause a fatal blow to the sale of luxury goods.

To a certain extent, "MILANO" and "1913" are

The best brand endorsement.

In the eyes of consumers, Milan is the same as Paris.

The pilgrimage site, which indicates the time of brand creation, is a better example of its persistence in decades.

In China, nearly half of all luxuries are for gifts, although many consumers have not yet reached their free spending.

However, due to the need for gifts, they are very concerned about luxuries.

In order to show their identity, they often buy some luxury accessories for themselves. These accessories are not expensive, but they can get identity.

Therefore, in China, luxury handbags usually sell better than clothing.

For some people with lower spending power, there is also a sense of satisfaction in buying counterfeit counterfeit products.

It is this complex consumption psychology that has led to the popularity of counterfeit brands, which seriously affected the brand image and sales of genuine products.

This is a typical example. It was the first to enter.

However, due to the multi-party licensing in China, so much confusion of brand management and the endless counterfeiting brand, it has become the favorite of rural migrant workers.

In order to maintain the high-end brand image,

We have to venture out of the Chinese market.

In view of this, many luxury brands only regard Chinese local agents as pioneers. After the market matures, they set aside their own agents and operate their own businesses, for example.

China's retail business has been recovered.

This kind of "discarding and killing" is a double-edged sword. Agents invested a lot of money and painstaking efforts in early promotion. If they were abandoned, they would suffer heavy losses.

In order to avoid this risk, many agents are looking for ways to counter purchase.

China trend group was once an equity holder in KAPPA China and Macao, but in April 2008, it acquired and owned.

The YGM trading company of Hongkong, China, became a company in 2009.

Holders of interests in Asia.

From this point of view, we seem to understand the psychology of Lu Qiang, President of the company, but we can see that Prada's acquisition is purely hype.

The business mode of the company is very simple, that is, selling super low discount through "direct sale discount shop".

This model has a specific word abroad:

In Europe and America, Oteri J is a relatively mature format, but it has just sprung up in China.

As China surpassed the United States to become the world's second largest luxury consumer after Japan, the company has grown rapidly in recent years, but that does not mean that it can swallow Prada.

In fact, the acquisition

It is not helpful to the business of the company, because the acquisition of Prada will inevitably affect the cooperation between the company and Prada competitors.

Every acquisition of the garment industry is accompanied by the loss of designers, and the acquisition of the company is no exception.

Designers are regarded as the soul of Prada. If the support of top designers is lost, the Prada acquired by Prada is just a body without soul.

Moreover, Prada is a family business with a history of nearly 100 years, and its internal relationship is complicated.

International mergers and acquisitions have always been a minefield for Chinese enterprises. TCL has spent several years without escaping from the nightmare of internationalisation. If the merger and acquisition of Prada with large debts and complicated Prada, the outcome of FBI will not be much better than that of the TCL.

In fact, as long as

The family has absolute control power. People will not have any doubt about the quality and taste of Prada. As long as this foundation is in place, Prada will have the possibility of revival.

But if the right of control is handed over to the Chinese people with poor reputation in the industry, this foundation will no longer exist.

In the eyes of foreign counterparts, the Chinese are equivalent to plagiarism, creativity and copying.

On the other hand, Chinese people are regarded as unwelcome people and have been strictly guarded by foreign counterparts.

At the top men's Wear Exhibition Pitti held in Florence, Chinese people usually get "special attention", such as taking photos and confiscating cell phones.

Overseas

From concept, design, testing to listing promotion, it often takes two years, and Chinese people are accustomed to copying other people's success quickly by copying shortcuts.

Driven by quick success and instant benefits, Chinese entrepreneurs seldom settle down to create brand names and endow them with cultural connotation and mission.

Against this background, Lu Qiang's future will be dim after taking over Prada.