Prada With Handbags To Reverse The Declining Trend For Years, Who Is The Savior?

It has gone through a difficult period.

To get rid of the predicament, this family

The management has made great efforts, including

Now these measures are working - they may be a little late, but late is better than none.

The company has turned its attention back to the most basic element, the product itself.

And it's a revitalization.

Product -- the biggest shake of luxury brand Qian Shu -- the measures taken are especially worth studying carefully.

If you want to know where Prada is acting, first of all, analyze its problems.

The group once raised the price of handbags to high-end market, even to Chanel and Herm s.

However, the most representative product of this brand is made of nylon.

So consumers think Prada

It is not surprising that the price is too high.

Although the group made the decision to reduce the scope of products at the first time, it would not help.

Sales fell sharply.

For the time being, Prada's strategy seems to have achieved some success.

Since then, the Prada group has reconsidered the pricing strategy and started to fill the gap in its price in Pyramid, especially in the field of entry-level products.

The survey of over 10 thousand luxury handbags by Exane BNP Paribas, Paris, France showed that four years ago, Prada did not have 499 euros or less of handbags. However, today, the entry-level product series occupies 1% of its existing products.

The group also expanded the proportion of the price range from 500 euros to 999 Euro euro handbags, which increased from 13% to 18%.

Does the group not ignore the brand image and suddenly cut prices sharply? Of course not.

On the contrary, nylon handbags have been reintroduced and become products of push force.

The proportion of products decreased from 92% to 72%.

Prada will also focus on small handbags and the size of handbags that are similar to those of large ones. Now the proportion of these products in all their products is 10%, which has risen sharply compared with four years ago.

All of these products are priced below the average price of Prada handbags.

What's interesting is that while Prada is reducing prices, its main competitors, Gucci and Louis Vuitton, have been raising prices.

Gucci priced at 1500 euros, or higher, the proportion of handbags increased from 43% four years ago to 63% now.

The proportion of Louis Vuitton handbags at the same price has also increased from 53% to 75%.

In sharp contrast, Prada dropped from 65% to 59%.

These changes in price structure have led to a decline in the median price of Prada handbags in the past four years, down from 3% to 1600 euros in 1650 euros.

In the same period, the median price of Gucci handbags increased by 20%, while Louis Vuitton increased by 26%.

For now, Prada's strategy seems to be making progress.

Its sales increased by 9% in the first half of 2018.

Although fashion is changing rapidly, especially in today's era, the old way of returning products is attracting more and more new consumers.