How Can PRADA'S Performance Decline?

Excluding domestic political anti-corruption and international exchange rate impact, luxury consumption relies on two kinds of people, one is the blind blind to the present wealthy, the two is the marginal customer who buys or buys two times.

Marginal customers can boost performance in the short term, which makes the brand feel great potential in the Chinese market.

But these people do not have enough purchasing power. When the brand settles down, they will obviously shrink.

Any brand must rely on 20% of the normal customers to achieve 80% performance growth. The normal customers have the economic strength, and better understand the connotation and value of luxury goods. Compared with brands, they pay more attention to the product itself.

This makes luxury goods have to pay attention to the actual needs of consumers.

In the whole luxury industry, in order to fight against the decline and the number of tricks, PRADA appears to be particularly low-key, lack of performance improvement.

In the first half of the recent earnings report, net profit increased by only 4%.

A series of indicators show that this once famous brand of luxury goods has become the worst performance in the industry.

As of July 31, 2015, the net profit of PRADA group increased 4% to 1 billion 823 million euros compared with the same period last year.

The Asia Pacific market is still weak, showing a similar negative trend in the first quarter of the year.

In the first quarter of fiscal year PRADA, there was only a 0.6% increase in the Asia Pacific region, with only 5% growth in the Asia Pacific market in the first half of this year.

From the two quarter results announced by luxury groups, the LVMH, Kai Yun group and Burberry all grew, and only PRADA maintained a downward trend.

The Asia Pacific region is regarded as one of the important markets for luxury goods.

However, data from the Hongkong Tourism Industry Council and the Immigration Department showed that the number of visitors to the mainland in the first half of July was down 40%.

In order to improve the downturn, luxury brands have cut prices to save themselves.

Brand discount such as Chanel, Dior, Patek Philippe, Hermes, Gucci and so on.

。

Since last year's worst performance since listing last year, the PRADA group has not carried out the big moves including product and design.

Yang Dayun, President of the excellent international fashion brand investment company, told reporters that Gucci represents the classic in luxury brands, and Versace (Versace) represents fashion avant-garde. Ferragamo represents comfort and classic.

Compared with these brands, PRADA is less attractive to consumers.

In addition, there are more and more negative messages about PRADA quality.

In June, the Liaoning Evening News reported that Ms. Liu bought PRADA handbags for only two weeks, but after the identification of PRADA headquarters, "

No refund.

In the same month, the Beijing Municipal Bureau of Commerce and industry sampled clothing shoes.

Luxury blacklist.

The Beijing Commercial Daily reporter typed the word "PRADA poor quality" in Baidu, and there were about 66800 web pages. The homepage showed more netizens' tucking on the quality of PRADA.

At present, the traditional consumption environment of luxury goods is being challenged. In the past, the consumption of single counters and stores is being pformed into various consumer channels, including purchasing, buying and buying online. Consumers' consumption of luxury goods is becoming more and more mature from blindly to consumption, which further aggravates the popularity of traditional luxury brands.