Prada'S Performance And Brand Image Are Facing Crisis.

On winter evenings, consumers crowd into the flagship store in Fifth Avenue, New York, and talk about luxury handbags with women with gift cards. It is easy to know which brands are most popular, such as Celine, Proenza Schouler or Alexander Wang, but in the mouths of some chattering shoppers, we obviously hear a missing name: Prada.

"I see my mother has this brand," said Amy Lewis, a visitor from Chicago. "I don't think they are very outdated. I'm just not interested in it. I know they have classic works, but that's not my choice. I like those low-key rather than plainly written three words of luxury.

Liza Grace, a makeup artist from New Jersey, agrees: "I might buy a wallet, but Prada is not one. I will go and see if I have a new brand."

Three generation family businesses, 102 years of history, the most successful Italy in history.

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Miuccia Prada's clever and independent design has won a large number of fans for her, in other words, a lot of profits.

In 2013, the company's net profit was 3 billion 590 million euros, or about US $4 billion 200 million.

But Prada seems to be facing it now.

It is not just Fifth Avenue consumers who hold this view.

Last month, Prada group, including Miu Miu, Church's and Car Shoe, announced a decline in net profit in the first nine months.

The decrease was 27.6% to 319 million 300 thousand euros, compared with 440 million 980 thousand in 2013.

Turning to the decline in profits, Prada chief financial officer, Donatello Galli, declined to disclose the outlook for 2015, although he also acknowledged that there was no high expectation of any improvement in the short term.

Prada is now planning to postpone or cancel the original plan to open 80 stores in 2015 (the brand also refuses to comment on the news).

"We admit that the result is not satisfactory."

"This is not only related to the external environment, but also some internal factors," he said.

We need to adjust the company's expectation of market fluctuations, and our competitiveness in some price segments is also open to question. "

Analysts pointed out that the turmoil in the Asia Pacific market, which occupies more than 38% of the brand's sales, has hurt Prada's profits (and many other luxury companies' profits).

The protests in Hongkong and the wave of anti corruption in mainland China have led to the stagnation of the luxury goods market.

Europe is also poorly performing. Russia's political situation and Spain's hard recovery from recession are not conducive to brand sales.

Market analysts warn that the current situation has led people to speculate that this will be the beginning of a rebound in bottom or a precursor of worse and worse situations.