Luxury Group Prada Is Not As Good As It Used To Be.

Italy luxury group

Sales performance is stagnant, and the future of sub line MiuMiu worries the industry.

Italy luxury group Prada can be said to have been struggling.

Sales performance has been stagnant for more than two years. Last month's performance is still in poor condition. It seems that there is no sign of improvement. Similarly, Prada's sister brand MiuMiu is also true.

As Bloomberg analyst AndrewRoberts recently pointed out, "the collapse of demand from China, the strong dollar and terrorist attacks in Paris led to the dark year of luxury industry in 2015, especially for Prada group.

In short, demons are no longer wearing Prada. In fact, fewer and fewer people are wearing Prada.

Prada brand has been in the plight of over expansion and high exposure for many years, and the big China market has become the hardest hit area of recession, which means that more unreasonable shops will be closed.

Although the MiuMiu of the same group has sales growth, the contribution of this brand is obviously a drop in the bucket in the face of the negative impact of Prada, which accounts for more than 80% of the group's revenue.

Under the shock of the fashion retail market, the main brand is in the mire of performance, and the future of MiuMiu's closure has aroused concern in the industry.

This is obviously not a hole.

It is hard to imagine that if we trace the time back to ten years ago.

The group will let its brands "kill each other". Large luxury goods groups and fashion brands are keen to develop multiple sub lines, so that brand consumers will be strictly or precisely separated from each other so as to maximize their profits.

MiuMiu, as the secondary line of Prada, is at the peak of MiucciaPrada creativity. At least in the consumer positioning, the brand named after the Miuccia nickname has embarked on a completely different road from Prada at the very beginning. As the two become more and more similar, it is tempting to ask whether the creative energy of Miuccia women has been showing a downward trend.

At MiuMiu

On top of that, brands are seeking a shortcut to get a lot of media attention and fans' attention. That is to bring a series of new generation models.

Data show that MiuMiu's modern supermodel lineup has enabled its fans to interact with 87 million on Instagram, including KendallJenner, GigiHadid and EmilyRatajkowski.

This is undoubtedly a surprising move, because brand director MiucciaPrada is not a conservative person. However, in the current circumstances, she is obviously different from the past in the popularity of the bad brand, and also reflects the decline of MiuMiu in recent years.

However, this is not a traditional MiuMiu show. With more and more frequent adoption of this new model, it has largely covered the fashion show's display of MiuMiu's design merchandise.

Cathyhoryn, a fashion critic, concluded: "MiuMiu is obviously in trouble. In this latest series, you can see that Prada is trying to close the MiuMiu to the main brand line, and basically copies some of the design works that were exhibited in Milan last month, such as burlap coat, basic military jacket, diamond pattern sweater.

But if MiuMiu wants to revive, she needs a more comprehensive reform. "

Some analysts say that not all consumers are satisfied with the fashion show full of social star models. It's like a cheap marketing strategy. Miuccia, as a truly visionary and creative fashion industry leader, should think further, even if the giant is falling into a period of weak performance.

Previously, the Prada group has been trying to stimulate the growth of the group business through the MiuMiu auxiliary line, but it seems that it has not yet entered the stage of scale returns.

Some analysts say that under the current brutal fashion retail situation, the Prada group's MiuMiu sub line approach is no longer applicable, which not only weakens the influence of both, but also increases the cost.

Many years ago, luxury brands had their specific clusters and consumer groups. In the age of information technology, all brands were forced to return to the same starting line.

Once the principle of consumer segmentation is no longer applicable, fashion brands need to constantly expand their design styles to meet changing needs, otherwise customers will be robbed by others, such as fast fashion brands.

LucaSolca, director of ExaneBNP Bank of Paris, a luxury research Financial Services Company, has said that consumers now have more choices, and the products that independent designers cooperate with large retailers are also emerging.

Now, the main line and sub line of brands have become indistinguishable. To a large extent, they also benefit from the development of fashion industry and the increase of audience. When business is large enough, it will become more and more difficult to separate and develop each other.

Dolce&Gabbana shut down their applause and D&G. Before that, the two product lines also faced similar situations. The designer decided to concentrate all the features on a product line and close the relatively cheap side line.

Due to the sluggish sales, customer loyalty has declined significantly over the past decades, but the product is still the most important. Especially in the heavily relied Great China market, MiuMiu still has no core handbag style captive consumers.

No one pays attention to clothing, and the exposure of social media is only a temporary reflection. In the near future, MiuMiu will return to its original state.

In recent years, many fashion brands have turned off the secondary line, including MichaelKors, Burberry and MarcbyMarcJacobs, which have already closed down some of their secondary lines.

For the view of the sub line brand, designer Wakubo Rei once said that from the beginning, it avoided the idea of "sub line" and never liked the idea of "secondary line" because it diluted the brand, and it weakened the idea.