PRADA's Worst Report Card After Self Dealing

After its listing, it has set an annual growth rate of PRADA of 44.9%. (Prada) ) the group recently handed in its worst report card in recent years. According to the 2014 financial report released by the group, as of January 31, 2015, the group's total revenue in 2014 was 3 billion 552 million euros, down 1% from the same period last year. Among them, China's Asia Pacific region fell most severely, with a drop of 5%. It is understood that this is the first performance decline of PRADA group since its listing in 2011. The financial report attributed the decline in the Asia Pacific region to the fact that "the important market of China, Hong Kong and Macao is affected by political factors". In the view of journalists, frequent changes in brand positioning and marketing strategy are the direct factors leading to the collapse of the myth of its complex growth.

For a long time, PRADA has been praised as "the best woman's brand" by the industry. At the same time, "women like PRADA" has also become the most successful slogan of the brand. But surprisingly, in the past two years, PRADA has been fascinated by men's wear, which made the brand advantage which had been built in the field of female luxury goods vanished, P RADA products Retail Director GiulioBrini has said more than once that "men's clothing will become the main force in our development". In his view, the men's clothing market has a strong growth potential.

Reporters believe that in the luxury industry gradually into the adjustment period today, strengthening brand positioning, consolidating strong advantages, deep ploughing sales channels is to protect their own customer groups and then enhance the performance of the favorable protection. PRADA abandoning the already mature women's market and turning to a large-scale layout of men's clothing market, some of them are not willing to win.

In addition to brand positioning, PRADA's "fickle" is also reflected in marketing strategy. As early as 2012, PRADA responsible person said that China is the largest and most powerful market, and is PRADA's preferred expansion target. However, at the beginning of 2014, PRADA executives denied the claim when attending the Asian financial forum. They said that Chinese consumers were more enthusiastic about overseas markets, especially the tourism consumption was abnormal, so they had little effect on the Chinese market. From two different high-level statements, we can see that there is a big controversy over the strategic planning of marketing within PRADA. The swaying marketing strategy has led to a decline in the effectiveness of the brand. According to the relevant reports, the Asia Pacific region's performance in 2012 has increased by 32.5% over the same period in 2011, but by 2013, this figure has dropped by 11%.

As a matter of fact, PRADA group has seen a marked decline in performance in the first three quarters of 2013. In the first 9 months of 2013, the group's net sales amounted to 932 million euros in the Asia Pacific region, an increase of 14.4% over the same period last year, down by more than 60% compared with the 40.5% growth rate in the same period in 2012. Reporters believe that marketing strategy accurately reflects the development needs of enterprises in a certain period of time, and has guiding significance. If frequent changes, not only will not be conducive to the implementation of a clear sales direction, more likely to lead to brand errors in planning.

Today, the old luxury brands are facing challenges of reshaping and innovation after passing through the dividend market in Asia. They either stabilize or enhance brand positioning by raising prices or transform them into light luxury brands and serve the public. However, PRADA once again showed the character of "fickle" in the process of self rescue: in early 2014, PRADA plans to set up 10 to 15 stores in China and 80 new stores worldwide. However, according to the mid-term earnings report in 2014, PRADA reduced the number of stores worldwide to 65. According to information, PRADA plans to invest in the development of primary luxury goods and increase its entry level luxury goods from 1000 euro to 1200 euros for more. Consumer groups To improve their marginal profits. Journalists believe that in a sense, lowering the unit price of a product means lowering the brand value. Once the core value of the luxury brand is diluted, its image in the consumer's mind will be greatly reduced, resulting in the decline of the brand and the decline of its performance.