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    PRADA Performance Continues To Decline, Luxury Growth Has Become A "New Normal".

    2015/9/16 9:55:00 46

    PRADALuxuryNew NormalHermesGucciDiorChanel

    Recently, PRADA The group released its first half financial results. The results showed that as of July 31, 2015, the net profit of PRADA group increased by 4% compared with the same period last year, to 1 billion 823 million euros, while the growth in the Asia Pacific region was weak, with an increase of only 0.6% in the first quarter and an increase of 5% in the first half. Compared with others Luxury brand PRADA's performance seems to be the worst performing among the big luxury brands.

    All along, many luxuries are labelled by consumers, for example. Hermes Luxury, Gucci On behalf of classics, Chanel Avant-garde, Dior noble... But PRADA's labelling does not seem so obvious. A number of consumers have labeled the brand as a professional and versatile brand, but the brand's own "devil's head" marketing intention expresses its position and frontiers, and it has a larger discrepancy between the label and the tag that consumers place on the brand, and the brand positioning is very vague.

    But this is not an important reason for consumers to abandon the "devil's head". Lack of word of mouth is a major reason for consumers to kick out of the wardrobe. In recent years, PRADA has frequent quality doors, and the problems such as metal buckle dropping and bulging are frequent. After consumer complaints, most of the explanations given by PRADA are non quality problems, which are improper use by consumers.

    This tough attitude has made consumers "very uncomfortable", and in today's fragmented media, PRADA bad news spread like a flood on social media, damaging the brand to intangible.

    Is the quality of PRADA really bad? When the brand side has emphasized for many times that consumers complain about the quality of the products because the consumers are not using them, one of the most important things that the brand should do is to imperceptibly influence consumers and tell consumers to use their products correctly. But when most people buy leather goods at stores, sales consultants seldom tell consumers how to use them properly and how to maintain them. Most consumers do not know much about them.

    In recent years, the era of high growth of luxury goods in China has gone forever, and the growth rate has steadily become a "new normal"; and more and more brands, consumers become more mature, and competition is more intense. Whether for PRADA or other brands, to grasp the needs of consumers carefully, meticulously and accurately marketing is the key to achieving growth.

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