Luxury Brand Prada Attacks On Discount Value And Brand Value Of Department Stores

< p > Italy luxury goods group < a href= "http://sjfzxm.com/news/index_s.asp" > PradaSpA < /a > (1913.HK) Prada released its three quarter earnings on Friday 20 December, which was slower than Eurasian sales and its performance was worse than expected.

CEO a href= "http://sjfzxm.com/news/index_s.asp" > PatrizioBertelli < /a > pledge that the group has the ability to maintain growth in the future. He said that if sales were needed, Prada Prada could sell 100 million or even 200 million euros a year through wholesale channels like a href= "http://sjfzxm.com/news/index_s.asp", "department store" and "/a".

For this reason, the explanation of PatrizioBertelli is that the department store industry is too cheap, often discounting and hurting the < a href= "http://sjfzxm.com/news/index_s.asp" > brand value < /a >, so Prada Prada would rather sacrifice sales than go to more department stores.

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< p > PatrizioBertelli attacks the department store only on its inventory and sales, and promotes sales through endless discounts.

Because in the holiday season, the department stores in Europe and the United States coincided with the strongest year-end discount sales, and this year, the issue of sales or profit margins was also debated among the department stores in Europe and the United States. Therefore, PatrizioBertelli has attracted the attention of the industry.

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< p > PradaSpA (1913.HK) Prada and BurberryGroupPLC (BRBY.L) < a href= "http://sjfzxm.com/news/index_s.asp" > Bobo Li /a > represented by the traditional a href= "/a" > luxury brand < < >, benefiting from the increasing income is gradually tightening up wholesale channels.

In the three quarter, PradaSpA (1913.HK) Prada retail channel revenue increased 11% to 759 million 600 thousand euros, wholesale sales fell 16% to 80 million euros, retail channel revenue accounted for 86% of total revenue, while BurberryGroupPLC (BRBY.L) boboley increased retail revenue 17% to 694 million pounds in the first half of fiscal year, and wholesale income decreased 7% to 244 million pounds.

The above results can be seen that traditional luxury goods are increasing the revenue and control of their direct channels.

PradaSpA (1913.HK) Prada has added 66 Direct stores this year, bringing the total number of stores running to 516. PradaSpA (1913.HK) Prada also plans to add 80 Direct stores next year.

BurberryGroupPLC (BRBY.L), chief executive AngelaAhrendts of Boboli, said in October that China's market revenue doubled this year. In addition to the increase in the number of stores, it was mainly due to the withdrawal of agency and updating of stores.

At the same time, Herm sInternationalSCA (HRMS.PA) Hermes, a href= "http://sjfzxm.com/news/index_s.asp" > Chanel < /a > Chanel, LouisVuitton < a href= "a" > Louis Vuitton "," Dior "and other brands have been taking the form of direct battalion, except in India, which has been constrained by the economic system and has to take joint ventures.

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< p > over the past five years, PradaSpA (1913.HK) Prada direct channel revenue has increased from 53% to over 80%, and its net profit margin has increased from 6% to 19%. This is enough to prove the importance of direct channel to brand. BurberryGroupPLC (BRBY.L) Boboli does not hesitate to pay a huge amount of liquidated damages to recover perfume and beauty agency. It also proves that investment in direct channel is worth paying.

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