Why Did Chinese Consumers Finally Freeze PRADA?

Compared with other luxury brands, PRADA's performance seems to be the worst performing among all the luxury brands, plus the negative factors such as brand weakness, lack of innovation and lack of brand strength in the past few years. If PRADA can't break through the bottleneck, it will become the next Gucci.

A few days ago, I saw many friends in my circle of friends turning an article "the loneliest Prada shop in the world". The tune was probably Prada's elegant independence. I was drunk too.

If you choose a brand story far beyond the product and company operating, probably no one can go to Prada before.

Today, I would like to tell you how much of a company that has always been poetry and distant.

The article is a little longer, but it is worth reading to avoid being brainwashed by this brand.

It's also worth reading for boys. When your girlfriend asks you to buy a bag next time, you can use it to defend yourself.

In 2006, the movie "devil wears PRADA" promoted the recognition of Italy brand PRADA in China.

When the Korean opera sold the beer fried chicken sauce soup to the people of the Chinese Empire, the European PRADA left the power to make this movie a luxury brand beloved by the Hongkong ladies and the mainland's freedom rich.

In the spy 4, Mona, a heroine killer, carries and covers a pistol, a diamond and a striking triangular mark. It appears on the big screen many times. Every time it comes to a low scream in the Black Cinema, PRADA!

This bag not only deeply moved me to the people, but all kinds of fashion editors put it in the name of "killer bag", which is simple and easy to remember.

So whenever you mention PRADA, you can't help thinking of Killer's s Bag.

At that time, almost every PRADA shopping guide in the world would take the killer bag first if it saw the Asian face.

So what is the reason why some Chinese consumers finally put PRADA in the cold seat?

In June 2015, Beijing industry and Commerce Bureau conducted a spot check. Among the 95 unqualified products, PRADA was on the list.

Now you can see through Baidu search "PRADA fade", "PRADA zipper", "PRADA offline" to see, these negative news abound.

There is a passage on the Internet: "imagine, when you walk on the road with a PRADA handbag over five thousand yuan, suddenly the handle is broken, and all the belongings inside the bag are out of the bag. This scene is embarrassing enough."

What's more,

In addition to reducing the number of shops opened, it is also trying to reduce prices by introducing 1000 euros -1200 euros (6790 yuan to 8148 yuan) to carry out entry products.

Moreover, the biggest killer is to quietly reduce prices in Hongkong and Macao. It is reported that the price of PRADA 80% products has been cut by 10%, and the Miu Miu part of the United Group has been reduced to hundreds of thousands of handbags.

The 2015 annual earnings report released earlier this year showed that PRADA group's net profit in 2015 was 45.73 billion euros, down 28.2% from the same period last year.

Once again affecting investors' fragile nerves, PRADA Hongkong's stock price plummeted, and many investment banks also lowered their ratings and target prices.

Although this may not be fair, outlet and counters like PRADA are different at the same time.

Sell the same product, often have low to the heinous discount, often use nylon cheap material like this, the work is also general, the same style of a large number of colors (see killer, shell and so on, and even match color), must be criticized, performance is definitely going to decline.

Now the luxury industry has formed the "three giants", namely, Richemont, LVMH and Paris spring (PPR). These three groups have more than 50% market share in high-end brands, and the loyalty of consumers is also very strong. Other enterprises in the market will not be able to compete with them for at least forty or fifty years in the LVMH market.

Although the market is changing rapidly, consumer preferences are constantly changing. However, the increasingly concentrated capital makes it difficult for newly entered companies to operate. The future luxury goods industry is likely to evolve into several oligarchic markets.

Compared with other luxury brands, PRADA's performance seems to be the worst performing among all the luxury brands, plus the negative factors such as brand weakness, lack of innovation and lack of brand strength in the past few years. If PRADA can't break through the bottleneck, it will become the next Gucci.

Of course, from another point of view, if there is no PRADA, the threshold for the working class to own luxury goods (not the fake ones) is higher.

So it still has the meaning of existence.

As for the poor quality, it is also good because it has not been damaged before you bother it.