Prada First Quarter Net Profit Plunge 44.2% Truth Big Secret

Italy luxury brands that used to be fashionable

Now, we have come to the intersection of life and death.

Net profit fell sharply by 44.2% in the first quarter, almost half.

The old devil wears Prada, now wears it.

With a niche designer, can the brand with a long history and rich stories win the fashion devil's wardrobe?

Downturn is not a good excuse.

The luxury market continues to be worrying, but the big groups and brands are fighting for the recession.

Chanel has cut prices, Dior has cut prices, Patek Philippe has also cut prices; Hermes has raised prices in Europe and does not contain China.

The performance is not good enough, but 50 percent off quick clearing, and strive to rush ahead of the year's performance.

No matter how proud they are, everyone is working hard.

When your opponent is spelling, you stay in the same direction.

What did Prada do on the road to recession?

In the first quarter of April 31, 2015, Prada group's net profit was only 58 million 745 thousand euros, and the Asia Pacific region's performance was seen as a drag on the brand's extreme recession.

The Asia Pacific market plunged 17.2% in the first quarter, which accounted for about 37.8% of the whole group.

The core brand Prada of the group declined in addition to its sales in other parts of Europe.

Analysts in the industry have reached a consensus that the brand has come to life and death.

After the worst performance since last year's listing, Prada group has seen a few public offerings in its visible public report, not only a lack of product, but also a lack of design.

The devil is abandoning Prada.

"Even in today's China, there are no longer people in the fashion circle who laugh at you, but laugh at your lack of taste and style."

This is no longer the world of brand names. No matter whether the brand positioning is high or the price is close to the people, it is necessary for consumers to open their wallets for some sufficient reasons.

For example, product quality is high, or positioning reflects the quality of consumers, or the design is unique.

If they are inferior to competitors, it will be difficult for consumers to make the final choice.

This is the collective embarrassment of luxury brands.

Forbes's website quoted JLL, a consultancy, said that although luxury brands like Gucci are very resistant to the emergence of fast fashion brands, the reality is that luxury brands do need the popularity of fast fashion brands.

Looking back at all kinds of Star Street pictures at home and abroad, it is rare to see someone directly putting on a brand name, and seeing fewer stars and daring people wearing a pair of Prada high-heeled shoes.

In fact, this is not a perplexity encountered by a brand. Even the new king of luxury and fashion Michael Kors is no longer exposed. Many small designer brands mix ZARA.

Appear in newspapers and magazines and streets and lanes.

There is a saying in fashion circles, even in today's China, no one is laughing at you, but laughing at you. Woodlouse has no taste and style.

Whether it can quickly cater to consumer demand determines whether the brand can continue to improve.

This is like the business rule of all industries - the market is king.

So Gucci changed the designer, and now the 50 percent off clearance is also laying the groundwork for the new autumn and winter products of the new designer.

Also changed the designer, in the Chinese market invited the Popular Artiste Angelababy to endorse, attend the new light SKP new store reopening business, Chanel took the lead in achieving the global price for the Chinese consumer drainage, and quickly test the water e-commerce.

Many brands are making moves to give consumers more reasons to buy.

What has been done so badly?

"This is not the first performance warning of Prada, and the worst performance since the launch of the stock market has long been a clue."

Prior to that, Prada chose to list in Hongkong, China, which means the importance of the Chinese market.

However, in the market which accounts for 37% of the business, Prada's brand reputation is declining year by year.

Expand sales, become the brand sales engine.

In recent years, there has been little reform in Prada's exposure in the Chinese market, but the negative exposure of quality.

In June of this year, a bag of $5400 bought by Ms. Lau used only two nail bags in only a week. The counter responded that it might be improper to drip water or oil.

After the identification of the package at the headquarters of the brand in Shanghai, it was also said that the bulging is not a quality problem, and it can not be returned for repair.

At this time, netizens turned out the black Prada micro-blog text: "if you buy a Prada package for a year, the zipper is not bad, LOGO did not fall, did not open the line did not fade, good quality bar, basically can prove that you bought a fake."

Coincidentally, in June 11th, Beijing industrial and Commercial Bureau sampling clothing shoes, several luxury goods boarded the black list, and another Prada.

What is the word of mouth? It is this Ms. Liu may never buy Prada anymore. She and her family and friends may abandon this brand because of her experience, so as to avoid risks.

What's more, there are too many alternative brands.

So consumers who read this report may also be affected by shopping decisions.

A few years ago, if you had to buy it, others would think you were rich and capricious, and now it will only be regarded as a stupid and unruly injustice.

Prada in the 2013 and 2014 financial year annual report "top management" list, 5 executives in the 2013 financial year did not appear in the 2014 earnings report.

They include the general manager of China and the head of leather goods department.

Since then, many quality problems have been exposed, and the leather goods of the brand are the hardest hit areas.

It is also known that the internal news of Prada came out, and CEO Bertelli, a hot tempered person, has been focusing on quality and directly asked the head of the District, paying attention to details and being very strict.

China's generation processing plants will go out directly once they get involved in quality problems.

However, due to the difference in labor costs, brands are only sampled in Italy's own factories, and China makes all manual inspections.

In the consumers of Tucao's quality problems, the proportion of shopping and returning from Europe is quite high. On the contrary, China's counter products are relatively good.

Bertelli, a tough style, is trying to restore Prada's reputation and business.

In public speeches, Prada often emphasizes reducing costs to increase profits.

This argument is seen as contrary to the emphasis on luxury goods and Italian style, but more in line with the profit seeking goal of listed companies.

In the operation management of a luxury brand, it is far from enough to focus on short-term interests.

What is the insistence of luxury goods?

Ms. coco Chanel once said, "the essence of fashion is to pursue beauty and oppose vulgarity. It is not expensive. It is only creating good things, and we need to pay more money."

From the beginning of luxury, luxury goods emphasize the pursuit of beauty. The founder, with legendary struggles and twists and turns, tells the importance of fashion, style and beauty.

Once upon a time, the high cost caused by the necessity of good things became a high price established by the industry.

It can be said that raising the price to maintain the brand image has become a "trick" for luxury brands.

Even if the manual age has been replaced by the mass production era, this price model is still continuing.

But nowadays, consumers also know business very well.

In the early days when luxury goods entered the Chinese market, shop assistants often treated customers with a high attitude of love, and even inside information, such as brand training.

Chinese consumers, who are "afraid of being unable to afford to buy", are paying more attention to improving their tastes and finding their selves in the immature stage of new prosperity.

However, insiders also revealed that the "power" attitude of the salesperson stems from the incentive mechanism of the store.

If multiple salesmen collaborate in recommending products, it is certain that the incentive mechanism of the company is relatively balanced.

And the incentive rules that compete and even "grab" customers will destroy the strength of teamwork, and will not benefit the long-term improvement of overall performance.

Fashion shoppers who often go shopping have similar feelings: shopping in a more harmonious luxury store will be much more comfortable. Even if they do not shop immediately, they usually chat with the shop assistants happily.

In the Chinese market, which is paying more and more attention to shopping experience and brand tonality, consumers are beginning to pay attention to these details as well as choosing friends.

Design is a fashion pass.

"Prada although there are many new products, there is no breakthrough.

Killer products such as killer killers have not appeared for a long time.

Open Prada's official website page, clothing style, color, bag main map is not very attractive, although the blockbuster still looks delicious, but now the product is the core.

Open the official website of Hermes, in addition to having more childish interest, there is also a small game of selecting silk scarves to simulate the trial effect.

Don't belittle this point. It's enough to win more than anyone else.

In the first half of this year, Prada introduced a Flower Flower Eau De Toilette, an excellent series of men's perfume, an autumn and winter series of glasses...

However, the popularity of these products is not high.

A survey shows that the relationship between Chinese consumer behavior and star show and advertising marketing is very close.

If the brand can not be covered by a good sense of the total amount of brand information that consumers get, or it can resist the information of negative quality and price reduction, it is very difficult for Chinese consumers to take the initiative to retrieve brand advantage.

It's not fair, but that's the reality.

The romance and sensibility of Italians also made the brand on the verge of decline several times.

This time, we have encountered the crisis of history and brand.

Zhou Ting, President of the Institute of wealth and quality, said that the road to redemption of luxury brands is a pformation of fashion brands, and the two is to enhance quality and create ultra high end brands.

In the two mode, the former performance has slipped but the Coach has been pformed from the luxury fashion to the high-end fashion.