CEO Adjusts The Management Of Prada.
Patrizio Bertelli, Prada's CEO is famous for its hot temper.
Reported that, when he visited Miumiu shop in New York, he suddenly smashed a mirror on the spot, because it made people look fat.
Executive turnover is nothing new in Prada.
Prada's first annual report revealed that many executives including the chief operating officer of the company quickly changed into new people.
Prada employees have told foreign media that executives are riding the lantern because of Bertelli's temper.
According to sources from Prada, more than one important executive left the office in recent years. This change is related to the quality of products, including those who have followed the boss for many years.
"Curiosity daily" reporters compared the two annual reports of Prada 2013 and fiscal year 2014, each of which has a list of top managers.
5 executives appeared in the 2013 annual report, but they did not appear again in the 2014 annual report.
The executives who disappeared from the list were introduced in the 2013 financial year report: Giuliano GIANNESSI, 50 years old as group chief financial officer since 1993, and served as the 43 year old Janice LAM of Prada China general manager in 2013. She became the 46 year old Lorenzo PANERAI from 2008 7 months from 2008.
The resignation executives include the general manager of China and the director of leather goods department.
China is an important production base, and leather goods are the hardest hit areas of quality problems.
According to information from Prada, Bertelli is now in charge of product quality. He directly dictate to every district manager, asking every detail of quality, demanding meticulous and demanding company.
Far from the foundry factory in Dongguan, it is known that once the quality of a batch of goods is out of order, it may be the result of "leaving people".
In fact, the biggest quality problem is not in China.
Because China's labor cost is lower than Italy, products in China are 100% manual tests, while in Italy, they can only be sampled.
This makes the quality of Prada products produced in China better than that of Made in Italy.
The proportion of Prada handbags repaired annually due to quality problems is much higher than that of Italy.
Under the pressure of output, the problems of production links between China and Italy are different.
Many luxury brands use brand influence and order to lower the price of cooperation with the foundries. Bertelli seems to have realized that this will lead to the risk of Jerry building.
In the near future, Prada has increased the price of the factory, and has asked the factory to be more attentive. The manufacturer of garment is no longer a handbag. The factory that makes handbags does not take other product lines.
Once the cost of quality is increased, money will be saved from elsewhere.
In the past, the pportation of Prada's products was fast and expensive, but now most of them were converted to cheap shipping.
In order to reduce the impact on the speed of the shelf, the company's departments to do plans should be in advance.
Grumpy Bertelli, in a strong way, tries to pull back some out of control Prada after the market and pull it back to its standard.
Miranda (a pseudonym) once worked as a manager at Prada store, and then went to a higher position, but she did not stay.
There was a time when Miranda shop arrived at the store to compare their punch time records with their colleagues, even if it was only one minute apart.
Several clerks followed the order of numbers in order to receive guests on that day.
This is done to avoid the fact that the shop assistants are fighting for the strength of the guests and the guests.
Prada salesman may not lose to boss Bertelli.
Prada registered the first Chinese company in 2005, and the inflow of products is obviously earlier.
Many luxury brands originally opened the mainland market through Hongkong agents, but there was no official information about Prada.
After Prada was launched, the number of new stores in the Asia Pacific region was 18, 15, 27 and 15, respectively, from 2011 to 2014.
The Prada shop is the most controversial topic in the industry.
"Internal complexity is not easy to survive."
stay
Luxury goods
Jason (alias), who has worked in the retail industry for nearly ten years, sighs.
Prada attaches great importance to stimulating personal potential and does not encourage teamwork.
When you enter a luxury store, elegant and fine looking shop assistants will come to serve you. Maybe more than one person will talk to you, someone will help you to wear, someone will trot to the warehouse to find a better size for you.
You feel loved.
The usual selling mode of luxury brands is that a salesperson who sells goods directly or helps others to sell will be encouraged to get commission.
The company encourages both individual ability and team cooperation, but the formulas given by different brands are different.
But the Prada play is quite different. It is alleged that Prada can hardly reward team cooperation in the early years. Only the salesperson who orders the bill can share the bonus of sales.
From frontline shop assistants to employees at a higher level, encouraging individuals is a common idea of Prada.
For outstanding talents, Prada will give a salary cap on recruitment.
A few years ago, in Prada, the basic salary of the first line salesperson was only about 1000 yuan per month, while the level of other brands was about 2500 yuan.
But in the royalty part, Prada is far ahead of peers, and the salesperson who performs well can get a salary of up to 2-3 yuan per month.
Such a policy encourages all salesmen to be guided by sales.
shop
There must be a lot of "non sales" jobs, such as backstage finishing, which are not motivated by salesmen.
The realization of a sale does not depend on the ability of a staff member. Teamwork is indispensable.
The brutal and stimulating sales system stimulates employees' personal potential and creates a fierce Prada sales team, but it makes the relationship between employees subtle.
Staff pressure is high and turnover rate is high.
Emmanuel Hemmerle, a Shanghai based Frenchman and luxury goods consultant, told reporters: "Prada sales are stronger than anyone else.
However, due to the emphasis on personal contribution greater than everything, the "opening" orientation is distinct, and in the view of customers, their sales style is snobbish.
Because teamwork is not encouraged, the atmosphere between employees is sometimes very intense in a shop. "
The latest is that as the market for luxury goods has cooled, Prada has changed.
Before the annual report on net profit fell by 28%, Bertelli has started to act on all aspects.
In the store, Prada enhanced the encouragement of teamwork, requiring employees not only to sell, but also to tell stories.
But Prada is still the most aggressive and highly paid brand in the industry.
Despite the perceived problems, even though this year's decline is very large, Prada's annual sales volume is still an alarming figure in the industry.
In the past "golden ten years" of China's luxury market, it is sometimes more effective to seize opportunities than intensive farming. Who dares to say that Bertelli's strategy is wrong?
Prada
It is an authentic Italian company, with Italian style of romance and sex appeal, and like an Italian, passionate and rational.
In the course of the development of Prada, the ups and downs of performance are common, and the company has even been on the verge of extinction several times.
In 2013, for the slow growth of Greater China, Patrizio Bertelli said, "the pace of consumption of Chinese consumers has not stopped. The number of overseas travelers has increased dramatically, and many people have chosen to shop in the US and European markets."
He is still interested and confident in Chinese customers.
"Compared with other aspects, I think Prada is very competitive in products.
Bertelli has a fever for products, and so does his wife, Miuccia.
People who used to work in Prada told me that Bertelli will also design products for himself. He is very proud of his ability.
Emmanuel Hemmerle told reporters.
But some people say that although Prada has many new products, there is no breakthrough.
Killer products like killer killers have not appeared for a long time.
"Their decisions seem to be more long-term.
In China, more attention should be paid to senior managers, not only when recruiting, but also to train and enhance leadership in order to create a strong team.
Emmanuel Hemmerle said.
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