Prada Two Years Open Shop Hundred Sales Decline

If you don't do it, I will not feel it.

Grandma's love book often says, "the colder they are, the tighter they catch up", and this is also the golden rule for luxury brands.

Prada (Prada) recently announced the first half net profit slump 20.6% bad earnings report, perhaps with their "low profile" related, the gradual rise of the Chinese people mistakenly believe that "people silly money come more quickly".

I hope this is a story that an angel will not grow old.

In 1913,

The first boutique shop in Milan, Italy, was founded by Mario Prada (Mario Prada), a designer and designer of fashion and quality handbags, suitcases, leather accessories and cosmetic boxes.

100 years later, the growth of Prada began to slow down. In recent years, it has begun to go downhill.

Prada's consolidated performance report for fiscal year 2013 shows that the group's net profit for the year ended January 31, 2014 was 625 million 700 thousand euros, less than 673 million 600 thousand euros expected by Reuters's comprehensive analysts, which was restrained by the strong euro, weaker demand in Eurasian market and increased tax burden. Net profit increased by only 0.3% on average, while the increase in fiscal year 2012 reached 44.9%.

In late September 2014, Prada released its medium-term results, and its net profit plunged 20.6% to 244 million 800 thousand euros in the first half of July 31, 2014.

This is the 2-4 month net.

After 23.8%, Prada lost another double-digit net profit.

Prada pointed out that sales in China have accounted for 1/4 of the group's total turnover, but sales in China have declined like those of its competitors.

It is clear that the next one hundred years of the centenary store Prada will continue to be evergreen, which is a major proposition before this luxury magnate.

For many loyal users of Prada and many luxury lovers, I hope this is a story that an angel will not be old.

However, the premise is that they have to understand that some shelves can not be easily laid down, and some principles must be upheld.

Please take snobbery as an essential quality.

There was a film called "the beautiful woman in the wind" in 1990. The Hollywood girl Julia Roberts, a girl in the movie, met a rude and eyed sales, which actually made her want to buy more high-end products.

According to a Canadian study, snobbish salesmen can make customers more likely to buy luxury items they sell.

You can call it the "beautiful moon" effect.

The above is a conclusion of the latest study called "the devil should sell Prada?"

The survey is published in the Journal of Consumer Research.

According to the survey, volunteers who met rude salesmen later indicated that they preferred designer brand products, while those who were interested in luxury goods had the greatest reaction force.

The lower end brands such as H&M and Gap have no such effect.

Darren Dah, a professor and marketing expert who led the research, attributed the phenomenon to customers' desire to acquire such high-end brand recognition and acceptance. (Darren Dali)

It looks like Prada.

We can consider snobbish as a necessary quality, which is similar to the small circle that everyone in the middle school is trying to join.

It's a powerful driving force to get a sense of belonging.

120 stores in two years, do you think it is the great leap forward era?

In order to prove his "top" status, what is more convincing than "open shop" and "big shop"? Prada has taken this as the truth in recent years, and even expanded the scope of opening the shop to China's three line city.

Prada has mentioned in its earnings report that the 2014-2016 year brand plan will set up 120 stores in the world, of which the new stores in China will be located in the second tier or even three tier cities, such as Urumqi, Xinjiang.

From the data point of view, Prada has opened 75 Direct stores in the past 12 months, including 41 Prada brands, Miu Miu29 home and Church 'S5 home.

In fact, under the background of the economic crisis, the fund situation of Italy brand, which is actively developing shop, is not so good.

As a result of wide open shop, the decline of single store sales has directly led to the shrinking of cash in Prada's hands.

Zhou Ting, deputy director of the international brand management center of the Ministry of Commerce, has also analyzed that it is a regular strategy for luxury stores to open stores to promote performance for a long time.

But in the face of the changing market, blind expansion may lead to tight financial services and ultimately short-term performance is just like a flash in the pan.

In addition, the "wide open shop" approach has made Prada lose the "hunger marketing" effect. When a Chinese mom in a three line city passes a Prada shop every day to jump the square dance, is the Prada that has been unveiled mysteriously attractive?

It can be said that from the current situation, reducing the opening shop plan is sensible for the current Prada: many brands consider opening shop as one of the effective ways to improve their performance, but this is like stealing the bell and stealing the bell.

According to the actual situation of the market and brand, it is a problem that many luxury brands need to think about to adjust the shop strategy.

In the face of a sharp decline in performance, Prada seems to have finally realized this problem. The group CEO Donatello Galli announced that the number of new stores planned to be opened will be reduced from 80 this year to 65.

At the same time, he said he hoped to raise the gross profit margin of Prada throughout the year by cutting costs and adjusting the structure.

I hope this is "never too late to make up for it."

Pose to tell the Chinese what is upper class!

In addition to opening stores and other reasons, the industry said that Prada suffered a decline in performance, mainly due to the discomfort of leather goods department, which is also a thorny problem that now plagues many luxury brands.

The brand does not make timely adjustments to consumers' shopping habits and preferences, and is gradually away from consumers.

Once upon a time, owning a Prada bag was the dream of many domestic consumers. Why in a short span of a few years did the brand fall quickly from the altar?

Prada may not have seen the Chinese market yet, and think that the Chinese are still "no taste" aunt uncle, so they don't need to produce so many advanced customization or limited edition. They do not need to pay attention to their individuality.

From a realistic perspective, the rapid maturity and information content of Chinese consumers continue to increase. The classic and basic categories of luxury goods have ended the honeymoon period in the past few years with Chinese consumers.

Simple design and single sales channels can no longer match the pace of market change.

From the Prada earnings report, we can see that a "simple" brand in China has begun to be squeezed out, and if there is no future change, there may be no future.

In addition to China's "anti-corruption" environment, the initiator of the decline in Prada performance is the internal injury of the brand. From the point of view of product structure, many of the Prada sales are lack of freshness for their classic and basic funds, and consumers' ideas are changing, while brand and design remain unchanged, so it is difficult to attract consumers' attention.

It is understood that with the advent of the era of LOGO, many brands are beginning to break the classics, and continue to innovate in order to meet the needs of consumers.

LV, FENDI and GUCCI have launched products and series that weaken LOGO.

The behavior of brand to conform to consumer psychology is obvious to all.

In turn, Prada has been stalled in design, and has been labeled by many high-end consumers with a lack of novelty.

It can be seen that diversified development has become the buzzword of today's enterprises and brands. If Prada wants to kill a blue sea at the moment of fierce competition, it can no longer be a spectator and make a quiet look.

Instead, we should focus on the diversification strategy of products, markets and promotion, and tell the Chinese people with lofty attitude: don't fill up that bag of rotten street.