Hongkong Listed Five Years Of Prada Scenery No Longer

2011

Choose IPO in Hongkong, and look back at this choice in 2016.

Since Prada was listed in Hongkong in 2011, the group has been

A few cards can maintain two annual growth.

However, in the past 2015 years, the growth rate has been reversed, and the myth of high growth has been shattered. After the fall of EBITDA in 2014 (the profit before tax depreciation and amortization) dropped by 17%, in the 2015 fiscal year, the profit has not been reversed. Whether it is the change of market or Prada itself, it is an undoubted fact that Asia has lost its favour in Asia.

Prada's choice of IPO in Hongkong in 2011 has been considered a wise and forward-looking choice.

At that time, the number of luxury brands in HKEx was far below the three largest exchanges in New York, London and Milan. Luxury brands in Hongkong were bound to attract much attention.

Prada originally planned to go public in Milan and Hongkong, but saw the RUSAL and L'Occitane listed Zhuyu before, while the "Milan station", which specializes in the second hand luxury package, rose 65.8% in Hongkong, and Prada finally decided to go public in Hongkong.

In addition, China's tariffs, Hong Kong and Macao free travel, mainland tourists buying, buying and buying, the development of Hongkong purchasing are good news. Around 2010, Prada can be seen in Asia, with annual growth rate of more than 30%. In addition to Hongkong, Japan's revenue growth is also increasing by more than 15%.

But it did not last long. In 2013, the growth of Prada was already declining. By 2014, the brand had been declining. Italy and North America were basically the same as last year. The rest of Europe dropped by 4.8%, and the Asia Pacific region dropped by 3.1%. Only Japan maintained 7.9% growth.

In 2015, the overall revenue was basically flat with 2014, while the European region had a steady growth, but the Asia Pacific region still dropped by 4.4%.

It is clear that Asia's weakness has become the most serious challenge facing Prada. Not too long ago, Chase has just lowered its Prada SPA in 2016, and its profit forecast has been reduced by 5%.

For the reasons for the decline in the Asia Pacific region's performance, Prada group explains that China's important market for Hong Kong and Macao is limited, and this figure is also offset by the relative appreciation of the renminbi. Otherwise, the decline will be more obvious.

Obviously, the Asian market has a very important position for Prada, but so much attention has been paid, but it has received negative feedback from consumers. It makes people wonder whether the market is changing too fast or Prada itself has changed.

There is a very interesting phenomenon. In 2014, when other luxury brands were closing up, Prada was still happy to open branches. In early 2014, Prada group also planned to set up 10-15 stores in China. Eventually, Prada group opened 7 new stores in China in 2014, but new stores did not increase revenue. On the contrary, excessive operating costs were one of the important reasons for the decline in performance.

On the other hand, when Prada overestimated its brand value, it overestimated the sensitivity of consumers to prices. Last year, the price cut of luxury goods in China led by Chanel's price cut, but Prada chose to lower prices in Hongkong and Macao only.

The sale price of Prada 80% is reduced by 10%, and the Miu Miu part handbag of the same group is reduced by hundreds to thousands of yuan.

This reflects the conservatism of Prada's style. The purpose of its own price reduction is not just to increase sales and clean up inventory, but to establish a global sales network with unified prices. The price reduction of Prada seems to be very narrow and narrow, so that it has not produced good results.

In 2015, Prada's leather products were still the main position of revenue.

Prada started with bags, and the sales value is understandable. After all, the profits of leather bags are very high, but from the data of recent two years, Prada's leather products are becoming more and more depressed.

Leather products revenue decreased by 4.9% in 2014, and it failed to turn over in 2015, with revenue falling by 2.3%.

It has become the only category of sales decline.

 

There are both internal and external causes for the decline in bag sales. In the past year, almost all luxury brand leather businesses are decreasing, especially in Asia and the United States.

Consumers are increasingly not going to consume bags as a symbol to prove their wealth, but prefer to create a complete fashion style. They will prefer to buy clothes, accessories, shoes and other commodities.

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And Prada seems to be stuck in the "killer bag" of the good memories, in the promotion of bags still occupy the most important position, in February this year in Milan fashion week, Prada bag is still on the T star.

Miuccia Prada believes that the business of luxury brands is built on bags, so Prada decides to put more patterns on accessories, such as hanging small purses on necklaces or belts.

On the T stage, there are also two models of handbags in one hand. The total number of bags exceeds the number of bags in the previous season, while the number of bags in the last season is about 30. The number of bags is about 40.

But in the same struggle, Gucci has a lot of ideas. Since everyone thinks Gucci is old, then I completely pform. In the hands of new creative director Michele, the bag does not have a particularly prominent position. Instead, it is placed in the fixed position of clothing, shoes and accessories, but it has a strong recognition.

 

Now luxury brands are trying to diversify. In addition to reducing business risks, the most important thing is to have more chances to create the phenomenon of "explosive money".

One of the most important reasons for the conservative strategy is the aging of management. The current creative director, Miuccia Prada, is 66 years old and her husband Patrizo Bertelli is 70. In May this year, management finally began to act. Prada announced the start of a restructuring of non family management. Hope is a good start, and Prada also aims at the new cause of the Internet. Besides providing more abundant digital experience in stores through Wifi access, it will also focus on launching its own e-commerce website and working with Net-a-Porter.

Like all luxury brands doing business, Prada will also encounter its own problems, but it also proves that Prada has slowly moved towards its own orbit.

When asked by the media about Stefano Cantino's development of family management and the brand of e-commerce, the answer of Stefano Cantino is very Chinese: "this is a gradual process, so we have to go step by step". Prada