Prada Group Asia Pacific Performance Growth Is Still Weak, Still Expanding The Chinese Market.

In the first quarter of the year, P's luxurious big earnings report was gloomy and gloomy. The growth of single digit was overshadowed by the unbridled double figures of last year.

The Prada group, whose performance has always been strong, has not been spared. Although it still sticks to the ranks of double-digit camps, it is still unable to avoid a decline in growth.

According to Prada's earnings report, as of the fiscal quarter of April 30th, operating income was 782 million euros, an increase of 14.7% over the same period.

< /p >

< p > < strong > all the spearheads are pointing to the downturn in the Chinese market < /strong > < /p >.

< p > at the beginning of this year, CEO Patrizio Bertelli had vowed to say: "in 2013, we will continue to focus on the expansion of the global retail network, and strictly control costs and operating expenses to fully protect our cash flow."

In the first quarter, Prada opened only 1 new stores in the first quarter, which is far from its goal of opening 70-80 new stores at the beginning of the year.

< /p >

< p > however, Bertelli did not stop. He had put the "treasure" in the Chinese market and began to shop frequently in the second tier cities of China at the beginning of the two quarter.

< /p >

< p > < strong > growth fatigue is significantly less than /strong > /p >

< p > since last year, luxury brands including LV and Gucci have emphasized that they should focus on reshaping or enhancing brand image and improving the quality of products. However, Prada, who has always been an outstanding figure in the industry, has been working hard with the time, art, film and architecture industry in order to produce better works.

< /p >

< p > recently, Prada has drawn inspiration from the image of T Baz in the past 20 years, and has created more than 40 unique custom Miu Miu and Prada cocktail dresses and evening dress tailored series for Baz Luhrmann's great Gatsby.

< /p >

The costumes of < p > Prada have naturally become the protagonists of the film, the sparkling silk dresses decorated with crystal and sequins embroidery; velvet, fur and flashing tassels; emerald green, green jade, Huang Yushai and gold flickering.

The design of these elements has long been the highlight of the film.

< /p >

< p > however, the quarterly report published by Prada in fiscal year 2013 is not as good as that in costumes.

In the three months ended April 30th, the Prada group's net income in the first quarter was 782 million 300 thousand euros, an increase of 13.9% over the same period in 2012.

Despite the two digit growth, it is not as good as 47.9% last year.

< /p >

< p > earnings showed that the group's net income was 138 million 200 thousand euros, an increase of 13.5% over the same period last year of 121 million 700 thousand euros, which was an alarming 111% last year.

By contrast, Prada's performance in the first quarter was somewhat bleak.

As of April 30th, the number of Prada outlets in the world reached 462, an increase of 67 compared to the same period last year.

Same store grew by 8%.

< /p >

< p > from the point of view of distribution channels, the net sales of retail channels amounted to 678 million 700 thousand euros, an increase of 19.1% over the same period last year, which contributed to the total net sales from 84.6% in the same period of 2012 to 87.9%.

Wholesale channels contributed the remaining 12.1%, down 9.4% from the same period in 2012, Prada said, which is basically the same as group expectations.

< /p >

From a geographical perspective, the net sales in the Asia Pacific region reached 315 million 600 thousand euros, an increase of 24.8% over the same period last year, and the contribution of the region to comprehensive net sales increased from 37.6% to 40.8%.

Same store grew by 6%.

Among them, the Greater China region achieved 24.3% growth and the same store grew by more than 8% to 9% of the total.

< /p >

< p > the Americas grew by 23%, occupying 12% of total sales, while Italy's sales fell 8% to 132 million 800 thousand dollars, accounting for 13% of the total revenue.

The rest of Europe grew by 7% to $207 million 300 thousand, or 23% of total sales.

< /p >

< p > from the perspective of commodity type, the sales volume of packaged and < a target= "_blank" href= "http://www.91se91.com/" > shoes "/a" fell by 5.1% and 12.2% respectively, except for the sales of leather goods increased by 29%.

< /p >

< p > however, the sales volume of Prada group's main brand Prada reached 638 million 800 thousand euros, up 18% compared to the same period last year, compared with 52.3% last year.

Nevertheless, the contribution of Prada brand to overall net sales increased from 80.4% last year to 82.6%.

The results of the second brand MiuMiu are also not optimistic, and the number of single digit growth is 5%.

< /p >

< p > < strong > continue to vigorously expand the Chinese network < /strong > /p >

Behind the downturn, we can not ignore that the Asia Pacific region, with China as the main driving force, is the largest market in Prada, and its sales are also facing a rapid decline. P

The quarterly report shows that the Asia Pacific region, apart from Japan, occupies a market share of more than 40%.

The region's net sales in the first quarter were 315 million euros, up 24.8% over the same period (23.1% at fixed exchange rates).

But compared with the same period last year, the Asia Pacific region's growth rate is as high as 46.9%, and the growth rate of the Greater China region reaches 53.7%. This year's 24.8% performance is extremely tired.

< /p >

< p > media reported that after the Prada group's 2012 quarter financial year fourth quarter earnings report disappointed some analysts, the volume of pactions in Hongkong dropped to its lowest level in 18 months.

This is mainly due to the delayed arrival of the Chinese New Year in 2013.

< /p >

< p > but although the Chinese New Year's Spring Festival arrived on schedule in February 9th, it did not seem to contribute much to the performance of the first quarter of Prada2013.

The dismal results in the first quarter made Prada continue to increase its publicity in China.

< /p >

< p > according to the data of HCR monitoring conducted by Huicong research, the advertising volume of LV and Prada increased by 77.68% and 20.73% respectively in the first 5 months of this year.

Prada is still actively strengthening advertising and marketing in the Chinese market, and is undoubtedly coveted by the strong potential of consumption in the Chinese market.

< /p >

At the same time, P, Prada, after the silence of the first quarter, was once again accelerating its marketing network in China.

In January of this year, Prada opened its new stores in Nanjing and Changchun.

Recently, in order to celebrate the opening of Tianjin Galaxy International store, Prada specially launched a limited number of handbags. The style is Prada classic folding sheepskin bag. There are three color choices. They are peach, sky blue and orange yellow. Each color is limited to 10.

< /p >

< p > with the opening of a high-profile store in Tianjin, it has sounded the horn of the two quarter expansion of China's network.

In fact, Prada shops in Ritz Carlton Hotel in Sanya were quietly opened in June this year. No activities or media invitations have been held. For such a low-key Prada brand, such a "silent" is indeed rare.

< /p >

The expansion of "P" has come to Suzhou again.

The area will welcome another international luxury luxury brand PRADA.

It is reported that the Prada shop has a business area of 455 square meters, operating a full range of products, extending from the North first floor to the two floor.

< /p >

< p > the Prada's opening up against the market will obviously focus on China's second tier cities.

After all, the market with huge potential has always been a must for luxury goods.

< /p >

< p > recently, it is reported that Prada will pfer some of China's OEM business back to Italy.

Prada brand side said that no such notice had been received from headquarters.

< /p >

< p > Prada has been working with the leather goods group for 9 years.

It is conceivable that once Prada returns to Italy, labor costs will naturally rise, which will naturally be reflected in the market price of Prada handbags.

In response, people in the industry said: "if the Prada move is really implemented, on the one hand, China's labor costs are also rising. On the other hand, it is foundry in China, and there are too many goods exported from the market."

< /p >