Chinese Youth'S Conspicuous Consumption Weakens The Luxury Industry

Foreign media said that in 2015, the annual sales of Prada (Prada) remained flat for second consecutive years, as the slowdown in China continued to put pressure on high-end fashion and luxury brands.

According to Agence France-Presse reported on February 17th, the Asia Pacific region outside Japan and its weak sales performance in the United States can not offset the improvement in Europe.

In Europe, the weak euro has supported sales of tourists who want to pick up cheap tourists from outside the region.

Reported that the group's total revenue reached 3 billion 545 million euros, roughly the same as expected, but slightly lower than 3 billion 552 million euros in 2014.

The group includes clothing brand Miu Miu and high-end shoe brand Church's.

In 2015, Prada (Prada)'s annual sales were roughly flat for second years, as the slowdown in the Chinese economy continued to make pressure on high-end fashion and luxury brands, the media said.

According to Agence France-Presse reported on February 17th, the Asia Pacific region outside Japan and its weak sales performance in the United States can not offset the improvement in Europe.

In Europe, the weak euro has supported sales of tourists who want to pick up cheap tourists from outside the region.

Reported that the group's total revenue reached 3 billion 545 million euros, roughly the same as expected, but slightly lower than 3 billion 552 million euros in 2014.

The group includes clothing brand Miu Miu and high-end shoe brand Church's.

In a statement, chief executive Partizio Bertelli said that due to currency fluctuations and the suppression of the Paris attack of the fashion capital tourism industry, the company had to deal with a "highly volatile" environment.

Bertelli said: "these two factors make the price fluctuate greatly and change the direction of tourism in a sudden and unpredictable way."

Reported that some fashion critics have said that Prada's problem is not only an economic issue, in China's prosperity, the brand can be said to have been linked to conspicuous consumption.

Therefore, people believe that the brand is being left behind by the leading young people.

But Bertelli tried to dispel investors' doubts that the company is on the track of growth.

"Our retail network, thanks to investment in recent years, is now truly internationalized - enabling us to continue to develop direct relationships with customers who are always demanding all over the world," he said.

He said,

New business and marketing initiatives and a comprehensive digital plan are being planned to enhance dialogue with customers.

According to the report, Bertelli said: "these actions under the background of strict cost control will enable us to consolidate our market position with satisfactory investment profits and returns."

Bertelli and his wife, Mucha Prada, co founded the group.

According to the current exchange rate, sales in the Asia Pacific region outside Japan declined by 4%, and fell by 16% according to the fixed exchange rate.

"The economic situation in the Chinese market is still negative, although there has been some improvement in the last quarter," the company said in a statement.

The report said that a stronger dollar hit sales in the US because it was expensive for tourists who plan to spend money during their holidays.

And other luxury goods obviously become more expensive.

The European trend is opposite, the report said.

In Europe, the company says that because of the "steady volume of tourists, especially tourists from Asia Pacific and the United States", the sales rate is increased by 5% based on a fixed exchange rate and a weaker euro.

According to the current exchange rate, sales in the Asia Pacific region outside Japan declined by 4%, and fell by 16% according to the fixed exchange rate.

"The economic situation in the Chinese market is still negative, although there has been some improvement in the last quarter," the company said in a statement.

Reported that a stronger dollar hit the United States.

This is obviously a more expensive way of buying expensive handbags and other luxuries for tourists who plan to spend money on vacation.

The European trend is opposite, the report said.

In Europe, the company says that because of the "steady volume of tourists, especially tourists from Asia Pacific and the United States", the sales rate is increased by 5% based on a fixed exchange rate and a weaker euro.