Prada Advertising Blockbuster Facing Crisis

In addition to the global economic turmoil, the current situation of leather goods business is also one of the evidence that Prada is in recession.

Leather goods business occupies 3/4 of the brand, but more and more people come to believe that the quality of the brand is no longer the same, and the new It Bags also has an impact on the brand.

"I don't think people are abandoning Prada, but I've seen people's free attitude," commented the operators of fashion forums.

They want to try new things, and increasingly have no brand loyalty. In the past, they would pay for the brand, and now they only look at the handbag itself.

The fans of handbags have turned their attention to the cooler classic bag merchants.

Also began the pace of chasing.

Michael Kors and Kate Spade produce fashionable handbags less than Prada, even Coach brands have begun to make their high quality handbags more competitive in price while maintaining fashion.

They are eating the market share of Prada.

In 2013, the European Union report also said that the poor performance of the company in the United States was partly due to the dominance of Coach and Michael Kors in the market, which affected the profitability of Prada in the low-end market, and similar to Louis Vuitton.

It also suppressed the Prada in the upstream price.

The golden age of brand development is from 2001 to 2009. In 2011, Prada was listed on the Hongkong stock exchange.

This makes it impossible for Prada to adopt a more flexible sales way like Private Held Company such as Chanel, but has to consider the interests of shareholders in a comprehensive way, although there is no harm in it, but some new ideas are missing.

"This missing idea is about innovation," says Hana Ben Shabbat, a retail partner of corney consulting.

"The success of Prada is a new product of innovation and brand new spirit. Every season, every show, Prada has been demonstrating its ability to reinvent the brand, which has been slowing down in recent years. Now we have seen the result after the slowdown."