Luxury No Longer Tall Prada To Join The Electricity Supplier

In recent years, the luxury goods market has been in a doldrums, while the turnover of luxury brand Prada has also been declining, and the retail sales in the Asia Pacific region (excluding Japan) and the European market.

The decline is as high as 18% (under constant exchange rate).

Retail sales in Japan, the Americas and the Middle East have slipped.

Sales in the Greater China region dropped by 21%.

In fact, in 2015, Prada showed a sharp decline in the Asian market, with total revenue falling by 4.4%, the only area where sales fell at that time.

Leather goods (mainly handbags) are their most reliant products.

Sales of leather goods fell by 21% in the first half of this year.

Sales of footwear and clothing are also down.

From the brand perspective, Prada brand revenue decreased by 17% and Miu Miu decreased by 14%.

Shoe brand Church 's revenue increased by 1% (above data are constant exchange rate results).

In the financial briefing, Prada said that the global economic environment was bad and European geopolitics reduced tourists' income.

But in fact, the European terrorist attacks and the weakening demand in China have more or less effects on all European luxury goods.

Prada is the most affected, according to Sanford C. Bernstein analysis of research company, because its average price is relatively high and the investment to electric business is too little.

In addition, Prada is not brilliant in product innovation in recent years, and its quality is often criticized.

After the killer pack, Prada basically did not appear to sweep the market.

Prada Saffiano "killer bag" appeared in "spy 4" many times.

Prada repeatedly mentioned in the financial briefing that "company management sees 2016 as a turning point".

It also mentioned that it would focus on the most symbolic products of Prada in order to seek growth.

In July of this year, Prada just settled in.

Net-a-Porter, the electricity supplier, is said to be selling well.

They plan to launch an e-commerce platform in all major markets across the world in the next two years, and the mainland, Hongkong and Singapore will be the first to launch.

The target will double the electricity supplier income within two years.

Advertising marketing also goes online: it plans to increase social media input and reduce investment in traditional media.

Prada has announced that it will launch the official Snapchat account in October.

In China, it launched the official WeChat account at the end of 2014, but it only entered micro-blog in February.

Prada is planning to close some inefficient stores and redecorate a number of stores to enhance service quality and customer experience.

For example, they will create a separate space for private guests.

According to reports, they have been adjusting the focus of products and prices, raising the importance of high priced handbags more than 2000 euros.

Because at a lower price, prices are very competitive.

However

Stefano Cantino, marketing director, said, "we will cover all the prices of the products.

Because there are opportunities for different price stalls.

Prada has also taken a series of measures to reduce expenditure, but it has not been able to offset the decline in sales.

Its net profit in the first half of this year was 140 million euros, down 25% compared to the same period last year.