In The First Half Of The Year, The Turnover Of Prada SPA Group Declined In The Whole World.

First half year

Group turnover declined in the global region, with an overall decline of 15% to 1 billion 500 million euros.

By category, it was once promoted.

Profit

The decline in the category of products was the most severe, with a drop of 22%.

According to the regional perspective, the Far East business revenue dropped by 22%, while the tourism industry downturn caused by terrorist attacks in the European market also fell by 20%. However, the British region is an exception, because of the sharp decline in the sterling exchange rate, the sales performance has soared. Hongkong's scenery is no longer, and its performance growth has been slowing down in recent years.

Such a downturn has prompted Prada's headquarters in Milan to re-examine its brand strategy. In order to attract more young consumers, the brand adjusts product prices by cutting costs, reintegrating product portfolios and refurbishing stores.

However, the newly launched low-priced bag series, such as Prada Cahier and Miu Miu Dahlia, did not achieve the desired results.

At the same time, brand cuts in advertising, sales and spending are not enough to help brands recover revenue growth.

In order to better arouse the attention of young consumers, Prada pays more attention to the combination of brand and e-commerce. Luca Solca, an analyst at Exane BNP Bank of Paris, said that Prada's online turnover accounts for less than 2% of its total turnover. The latest move of Prada and e-commerce cooperation is to enter luxury E-business platforms such as Net-a-Porter and mytheresa.com, with a view to increasing brand exposure among consumers.

Prada chairman Carlo Mazzi told analysts: "in the next three years, the Group expects the online revenue of the brand to reach an annual two digit growth."

To this end, Prada will launch a new e-commerce platform in mainland China, Hongkong and Singapore by the end of 2017.

In addition, Prada also plans to restructure the store structure, will close some of the poor shops, will remodel the new shops, provide customers with a super private independent fitting room to update their brand image.

The brand will also readjust its pricing strategy, especially the pricing of its bags.

Recently, the brand has been focusing on the development of Prada products with a price of more than 2000 euros, but failed to make up for its lagging behind the sale of lower priced products.

Prada marketing director said: "our products must cover all price ranges, and each price range has enormous potential business opportunities."

Despite the sharp decline in profits and operating revenues in the first half of Prada, the brand still plans to continue its restructuring plan, and says it will reverse this downturn at the end of this year to achieve revenue growth.

But earlier, UBS pointed out that, due to the weakness in the luxury sector and the decrease in the number of visitors worldwide, the forecast for Prada 2017 sales was more pessimistic down 7%, originally forecast to decline 3%, and 2017 and 2018 earnings forecasts were 11% and 10% respectively.

Looking back at the luxury industry 2 years ago, Gucci, which once struggled with Prada and profits, has fully recovered. The latter showed an accelerating trend in the second quarter of this year, with a 7.4% strong growth in sales.

Operating profit rose 7% to 536 million 900 thousand euros in the first half year.

The creativity and creativity of Alessandro Michele, the brand creative director, is recognized not only by fashion experts in the industry, but also gradually by consumers.

It is reported that the Prada handbag is quietly reducing the price, and imitated Gucci to push more handbag styles.

The pformation of China's economic mode and consumer environment poses a severe challenge to the global performance of international luxury brands, especially China's success in overcoming the US and Europe today with 29% of its global luxury consumption share.