How Luxury Brand Prada Climbs Up From The Bottom

Has been falling and has reached the bottom Luxury brand How should Prada save herself? Let's take a look:

As we all know, luxury brands are having a hard time at present, and Prada is the worst among the big brands. Recently, Prada's share price also fell to the lowest price since its listing. In order to save the decline, the Group closed some Chinese stores and launched discount promotions. But can these actions really save the decadent Chinese market? Can we save the brand?

Prada fell to the bottom

　　 Prada's share price has been declining

Since this year, Prada's share price has been showing a downward trend, and recently it has fallen to the lowest price since its listing in 2011. As of the closing on December 1, Prada had the lowest price of HK $27.1. This also confirmed the negative comments of major investment banks on Prada Group in August. On the contrary, LVMH, Kaiyun Group, Burberry and Dior all saw their share prices rise slightly due to the arrival of the holiday sales season. This is also inseparable from Prada's strategies. While the whole luxury industry is trying to fight against the downturn, Prada has been conservative in choosing to cut prices and close stores.

On the day of the "Black Five", Prada and Miu Miu, two brands under the Group, began their promotional activities in Hong Kong at a minimum of 50% discount. It is understood that, Prada The products at this discount include leather and clothing, among which leather products are sold at a discount of 60%, while clothing is sold at a discount of 50%. Some handbags and wallets in Miu Miu are sold at a discount of 50%. However, the performance of the stock market has reflected that the Group's price reduction strategy is not very effective.

In addition to price reduction, Prada has closed down 33 companies from 49 in 2014 so far this year to cope with the weakness of the Chinese market by reducing costs. But for Prada, who is excessively dependent on the Chinese market, the closure cannot save this decline. As of July 31, 2015, Prada Group's net income increased by 4% compared with the same period last year to 1.823 billion euros. The Asia Pacific market is still weak, showing a similar negative trend to the first quarter of the year. In the first quarter of Prada's fiscal year, the growth rate of the Asia Pacific region was only 0.6%, and in the first half of the year, the growth rate of the Asia Pacific market was only 5%. From the results of the second quarter of the fiscal year announced by various luxury groups, LVMH, Kaiyun Group and Burberry all saw growth, while Prada maintained a downward trend. From the financial report for the first half of 2015 released by the Group, the Group's net profit decreased by 23.0% year-on-year to 188.6 million euros.

In addition, Prada has received more and more negative news. In June this year, it was reported that a woman bought Prada handbags for only two weeks, but after the identification of Prada headquarters, they were not returned or replaced as "non quality problems". In the same month, Beijing Administration for Industry and Commerce randomly inspected clothing, shoes and shoes, and Prada was listed on the black list of luxury goods quality. It is precisely because of these conservative strategies and slow reaction speed that Prada Group has been luxury goods The big brands are at the bottom.