High Cold Prada Change Strategy Push Customized Service

Under the pressure of performance,

Start looking for change.

A few days ago, Prada opened two new stores.

The brand also renovated stores in Shanghai's Hang Lung Plaza and the flagship store opened in Guangdong Road, Hongkong.

It is worth noting that, as a luxury brand in the world, Prada has not only adopted a high-profile customized service while renovating Shanghai Hang Lung Plaza store. At the same time, Stefano Cantino, Prada group's strategic marketing director, has also publicly stated that, unlike in the past, the store will bring consumers closer, more personalized and unique.

Experience, not just sell goods.

The industry believes that, in the context of declining performance, the Prada, the "veteran cadre" who has always been very cold, has begun to bow to reality. Before changing the strategy of rapid expansion of horse race enclosure, it began to focus on store upgrading and customer experience.

Changing strategy and promoting customized services

Customization is no stranger to high-end consumers. Unlike previous years, luxury brands focused on promoting high yield and fast earning garments. This year, brands are starting to aim at customized services.

As an international top brand, Prada has set up a customized service in the newly renovated flagship store, Shanghai Hang Lung Plaza.

At the same time, reporters found that as early as April this year, Prada launched a phased "Made to Measure" customized service at SKP store in Beijing.

However, compared with other luxury brands, Prada's customized service is late.

In addition to tailoring coats, Western-style clothes and shirts according to personal shape, the service also provides personalized signature services with the initials of English names on leather and clothing.

Prada Beijing SKP shop men's department sales staff said, now the company's main push customized services, sales staff for each customer to do custom service introduction.

In addition to serving the guests two times a year in Italy, the core clothing stores in the first tier cities are equipped with customized service provided by China's clothing manager.

For customized services, Stefano Cantino has said publicly that the goal of the store is to create a more intimate, personalized and unique shopping experience for consumers.

The Research Institute released the 2015 "China luxury report", pointing out that the global high-end custom market currently accounts for about 20% of the global luxury market, and apparel jewelry is the most important custom product category.

At present, one of the biggest changes in the customization industry is the development of traditional luxury brands, and many luxury brands have rebuilt their own customization centers and expanded customized product categories and product lines.

Business pressure slow down shop

Information shows that from 2012, Prada started a "store strategy" and opened a total of 260 stores in emerging markets, such as Brazil, Russia, India, China and South Africa.

By the end of January this year, the total number of stores in the world has reached 618.

It is understood that in 2014, when other luxury brands were closing up, Prada kept on opening branches. In early 2014, Prada group also planned to set up 10-15 stores in China. Eventually, Prada opened 7 new stores in China in 2014.

In 2015, Prada closed 2 stores in Hongkong, and planned to open up new stores.

The "behind the scenes black hand" that slowed down Prada's opening up is the company's declining performance.

In the 2001-2009 year, Prada ushered in a period of rapid growth in sales. However, when the company went public in 2011, because of its too conservative product strategy and too high positioning, Prada's sales in China were getting lower and lower.

The 2015 fiscal year report released by Prada showed that business income of 3 billion 548 million euros ended in the 12 months ended January, down 0.1% from last year, and 7.7% by fixed exchange rate.

Group net profit of 330 million euros, a sharp decline of 26.6% over the same period last year.

In response to the performance of the Chinese market, Prada group CEO Patrizio Bertelli publicly expressed its cautious attitude towards brand development throughout the year. As of the first 12 months of January 31st, sales of Prada in the Asia Pacific region declined by 16.1% due to the slowdown in China's regional economy.

In this regard, Zhou Ting, President of the Research Institute, believes that the decline of Prada performance is mainly due to the lack of innovation capability of products. Compared with the explosive products launched by brands such as Gucci, Fendi and LV, Prada products are not enough to attract consumers.

At the same time, as the number of stores increased wildly, the speed of Prada's product update didn't keep pace.

Another analyst believes that the new store does not increase Prada's revenue. On the contrary, excessive operating cost is one of the important reasons for the decline in performance.

Future challenges remain

High profile customized service is not Prada solo dance, LV, Fendi, Jimmy Choo and other major brands have launched customized services.

In this regard, Zhou Ting said that last year, designer brands surged. Meanwhile, the high-end custom brands began to highlight their advantages, while rapidly grabbing the market share of traditional luxury brands, and further making consumers pition from brand consumption to product consumption, which led many luxury goods to realize that domestic consumers would be more self aware and personalized when they were buying luxury goods.

Prada Beijing SKP shop menswear salesperson told reporters that a minimum of 4000 yuan in the shop to customize a shirt, production cycle is the fastest 5 weeks.

According to the different needs of customers, the price is also tens of thousands or even tens of thousands of yuan, if it is set West price even up to hundreds of thousands of yuan.

Zhou Ting said that in the short term, Prada's brand effect can indeed improve its performance through personalized customized services.

But it can not be overlooked that customized services will make the brand vague, that is, consumers will attach importance to customized services and ignore brands, which may be a double-edged sword for luxury goods.

People in the industry believe that luxury brands are trying to diversify, which can reduce business risks. The reason why Prada is conservative compared with other luxury brands is the aging of management.

Prada, now creative director Miuccia Prada, is 66 years old. How to pform management should be the first consideration of Prada.