Prada Brand Develops Upstream

Before Tiffany and Burberry did not perform well, coupled with the impact of the slowdown in China's economy, the luxury industry, which had already been enveloped in the gloom of the global economic downturn, made people worry. Of course, it did not care about Prada.

But the recently released interim results are impressive.

Nearly 60% of the super high performance has greatly enhanced the confidence of the whole market.

Net income increased by nearly 60% over the same period.

According to the interim report, the net income of Prada increased 59.5% in the first half of 2012 compared with the same period of last year, to 286 million (Euro, the same below), the basic profit of 0.11 yuan per share, and no mid-term interest rate.

For the 6 months ended July 31, 2012, Prada consolidated net income was 1 billion 550 million yuan, an increase of 36.4% over the same period in 2011 (by a fixed exchange rate of 28.4%).

The high gross profit of luxury goods will always envy other industries. Prada has a higher level on the basis of maintaining high gross profit margins, and its gross profit margin has increased by 0.5 percentage points to 71.5% over the same period in 2011.

However, the absolute value of operating costs has increased from 550 million yuan to 712 million yuan, but the net percentage of net income has decreased from 48.6% to 46%.

The cost of sales increased from 357 million yuan in the first half of 2011 to 489 million yuan.

In terms of its brand, Prada (Prada) brand grew faster, sales in the first half increased by 40%, and Miu Miu brand sales increased by 23%.

From the perspective of commodity type, the sales of leather goods increased by 52%.

Sales of footwear and footwear increased by 17% and 14% respectively.

The Asia Pacific region has the fastest growth rate of 44.7%

The situation of Chinese people sweeping goods abroad is even more common. During the eleven golden week just ended, the Chinese people who went abroad for tourism mostly became cargo cleaning people. Even 90% of the queues in front of luxury goods were Chinese, and queuing for more than an hour was only for a Prada bag.

After all, it benefits from the depreciation of the euro, and foreign purchases of luxury goods are even 1/3 cheaper than domestic ones.

This enthusiasm for luxury goods has undoubtedly become a strong driving force for Prada to go against the trend.

According to the group report, the momentum of Prada and Miu Miu brands is positive, and the impact of the depreciation of the euro has led to sustained growth in the number of tourists.

Business growth comes entirely from the performance of the retail network, with a growth rate of 63.5%.

According to the interim report, sales revenue in the Asia Pacific region (except Japan) increased by 44.7% in the first half of this year to 532 million yuan, an increase of 35.4% over the same period last year.

But Prada's sales in Europe (except Italy) increased by 39.1% to 349 million yuan, accounting for 22.9% of the group's total sales, unchanged from the same period last year.

Sales in the Americas rose 30%, and Japan gained 34%.

The group financial report points out that the growth in the Asia Pacific region is almost entirely from retail channels, and the channel growth is 46.8%.

Sales in the area accounted for 34.9% of the total sales of the group, up from 32.9% last year.

Sales in the Greater China region also increased by 50.2% to 335 million yuan annually.

Direct store expansion promotes growth

In the face of Prada's brilliant performance, its CEO Patrizio Bertelli explanation seems too official.

He blamed it on the fact that in the past few years, Prada has always shown great adaptability to meet the needs of personalized market, whether it is clothing or not.

Products, Prada are the main holders, which allows Prada to respond to potential problems in a timely manner, with great autonomy and flexibility.

But in fact, the main reason for Prada's growth is still benefited from the expansion of Direct stores, plus the same store sales growth of 19%. The retail channel of the group increased by 47.2% to 1 billion 230 million yuan, an increase of 37.4% according to the fixed exchange rate.

Retail sales increased by 5.9 percentage points to 80.7% of the net income of comprehensive income.

It is understood that the number of direct outlets in the world has increased by 26 compared with the end of last year, of which 10 in Europe and 7 in the United States.

In the first half of this year, the same store sales grew by 19%, of which the same store sales grew 20% in the Asia Pacific region and 21% in the Greater China region.

Same store sales in Europe grew by 31% while fixed exchange rates increased by 59.8%. Prada pointed out that this greatly offset the impact of selective wholesale business strategy.

As of July 31, 2012, the total number of direct outlets increased to 414, and Prada group said it would continue to expand its stores.