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China'S Anti-Corruption Squeeze Luxury Consumption Prada Opens New Stores In China

2013/7/8 9:07:00 97

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 "although several stores were opened after May, the overall progress is still relatively slow compared with the whole year's planning." Long term concern about the industry is less than a href= "http://sjfzxm.com/news/index_c.asp" > Italy luxury /a brand. 
 as early as 2011, in the future plan, Prada has proposed the plan to open 80 new stores in 2013 and 2014. 
 at the beginning of this year, Prada CEO Patrizio Bertelli once said, "in 2013, we will continue to focus on the expansion of the global retail network", and this year we plan to open 70-80 new stores, including 10-12 in China. 
 according to Prada2012 annual report, as of January 31, 2013, Prada group has established 461 Direct stores worldwide, and department stores and independent retail stores network has been sold in 70 countries worldwide. 
 but in the comprehensive performance bulletin published in April 30, 2013 for three months in June 11th, it shows that "in the first 3 months of 2013, the group opened 1 shops (2 stores, 1 houses closed)." 
 it is not difficult to see that at such a speed, it is not easy to finish the target of 70-80 new stores a year, while 12 stores in the Chinese market are hard to find. 
 the above industry insiders believe that in fact, most of the contribution of Prada performance is achieved through its direct retail channel, "nearly 80%, so expanding the number of stores is very important for Prada". 
 focusing on the Chinese market, the number of Prada stores is not much higher than that of other luxuries. Patrizio Bertelli once said that the number of Prada stores in China "is only half the size of our competitors, which indicates that we still have great potential in this market, just as in other parts of Asia, around the world, in the Americas, North Africa and the Middle East". 
 although potential is still in existence, "choosing to slow down shop speed at this time indicates that Prada is still more cautious", the industry insiders said. 
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 when the economic slowdown has become the background of all industries downturn, Prada can not be left alone. 
 data show that in the 3 months ended April 30th, the net income of Prada group in the first quarter was 782 million 300 thousand euros, an increase of 13.9% over the same period in 2012, although it is still growing, but it has dropped a lot compared with the quarterly report last year. 
P also suffered from a downturn in the markets of Asian emerging economies, which have always been favored. According to the Prada quarterly report, Asia Pacific (excluding Japan) accounted for more than 40% of the market share, and the net sales in the first quarter were 315 million euros, up 24.8% compared to the same period last year, but also lower than last year's growth. 
 the anti-corruption action after China's leadership change has become the main driving force leading to the decline of luxury brands in China. Research shows that 20% of China's luxury consumption expenditure is spent on official gifts and other aspects. When thrift comes, luxury becomes a natural antagonism. 
 from January 31st to April 30th, Prada did not open a store in the mainland of China. The 4 new franchise businesses in the Asia Pacific region are distributed in South Korea, Singapore and Taiwan, China. 
 "in the second half of 2013, we may not be able to recover as we want." Patrizio Bertelli told the media that "in the future, we will focus on department stores in the Middle East, South America and the United States." 
 in the view of the above industry personages, Prada has made appropriate adjustments to the situation of China's big market and wants to reduce its dependence on the Asia Pacific market. 
 no reply was given to shop opening problem, < a href= "http://sjfzxm.com/news/index_f.asp" > Prada < /a >. 
 there is another reason for Zhou Ting, Dean of the Institute of wealth and quality. "LV, GUCCI, an international brand with a vane character, has already declared no shop in China, which is also a guiding role for other brands." 
At present, the signs of global warming are not showing. Due to loose monetary policy in many countries, asset prices are rising and new stores need to spend capital. The first consideration is whether the return rate of investment can be brought back with the increase of rents and human capital in P. 
 in case of failure to confirm a certain rate of return on investment, enterprises will not insist on the number of new stores, but ensure the growth of profits. After the new leader took over, the trend of corruption has been severely punished. The luxury business in China has declined significantly. At present, it is not a good time to expand stores. 
 in Prada's quarterly report, it is also clear that management will pay close attention to cost and working capital management to maintain cash flow. "It can be seen that at this time, capital flow is even more important." The industry insiders said. 
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Less than P, the first boutique in 1913 has been on the verge of bankruptcy in the 70s of last century, and now the world's luxury brand has been constantly challenged. 
 compared with other luxury brands, Prada entered China later. "When it enters, consumers have begun to recognize the concept of luxury goods, and have a certain understanding of luxury goods abroad, to some extent, avoiding the risk of early development of luxury goods market and the process of laying channels." Zhou Ting believes that the practice of Prada latecomers is quite conservative and conservative. 
 "in China has been relatively conservative, shop laying, activities input, media PR and so on are far less than other luxury brands. Now the momentum is better, but on the whole, compared with other brands, it is not an expansive strategy. " In her view, Prada's initiative in China is not enough. "It's more like being pushed by the market." it may think that the Chinese market is big enough to get better results without special thoughts and special inputs. 
 for slower growth, she thought it was expected. "A href=" http://sjfzxm.com/news/index_s.asp "China luxury market < /a > is still gradually expanding, but the market development will not be as fast as before, the competition will be more and more, but the capacity is still increasing. 
 she admits that economic and anti-corruption are objective reasons, but they will not cause too much pressure on luxury consumption. "According to our research, the new emerging consumer bodies from two or three or even four tier cities, so-called wealth and upstart, are not exported by many of their needs." Because local luxury goods channels, publicity is not in place. 
 China's luxury market has begun to develop in the direction of popularity and fashion. "If the market is not enough, the popularity will not increase, and with the increasing number of luxury brands, it will become a minority brand." In the eyes of Zhou Ting, Prada can develop rapidly in China, but "it is too conservative". In other words, their input is not enough. If there is a bit of trouble in the market, the market will be lost. She believes this will be the biggest challenge for Prada in the future.