Prada'S Share Price Plummeted Due To Declining Sales In China

Italy luxury brand Prada group is probably the worst in the year of luxury and disaster.

According to the latest news from Milan, Prada group reported that the company's net profit fell by 26.3% in the first nine months as of October 31st, and the core leather business continued to decline.

After the announcement, Prada group's share price fell nearly 7% to HK $24.85 per share today.

Prada, which has always been a great luxury, has plunged in share prices due to a decline in China's sales. Since January this year, the group's market value has shrunk by 56%.

Compared with other luxury brands, Prada

China is also inseparable from China. With the development of tourism, tourists from the Asia Pacific region have been pulling the sales volume of the European region for a while, and the performance of local and tourist sales in Macao, Hongkong has continued to decline.

Although Prada has taken measures to curb retail expansion, business restructuring and closing stores, some analysts believe the Prada group's response is still slow.

The reason for such a lack of strength is that analysts hold a view that too many stores have been overexposed in recent years.

At the same time, the negative impact of repeated quality gate is one of the reasons for Prada's failure to save.

At the same time, private luxury brands such as Chanel and Goyard can decide their own business development mode, while Prada is busy with them.

Although there are no obvious drawbacks to the interpretation of many aspects, brand innovation is deeply affected.

Since the launch of the killer pack in 2009 after the golden period of development, Prada has been released on the basis of the original package for a few years, and has also been released as a new product. At the same time, over expansion has led to the excessive exposure of the brand, which has become the reason why loyal Prada fans are gradually giving up.

"When you find your favorite Prada bag and have one hand in the street, this rejection mentality can also cause the brand to be refrigerated," industry analysts said.

Next, what the Prada group should do is to reintroduce the series of leather products that have always been the main force. The main products are high priced handbags, which will return to the brand design power and emphasize innovation. At the same time, we should readjust the commodity structure and pricing system, and reduce the difference between the Asia Pacific market and the European and American markets.

And optimize the structure of stores to reduce brand exposure.

A brand deliberately caters to the consumers of any class, and that is the beginning of its decline.

Since the beginning of November 27th this year, Prada group's two products, Prada and MIU MIU, are afraid of opening up the lowest half off sales and indefinite promotion activities, which also surprised the industry.

It is worth mentioning that Prada is also one of the most frequent brand markdowns in luxury brands.

Insiders say the Prada group has missed the time and opportunity.

Next, Prada will turn over by scale drive.