Frustrated "Devil Devil" Into A Performance Dilemma

In the movie the devil wears Prada, Miranda's "devil's head" image is deducted, and the Prada throughout the film is considered to be the unique symbol of the elegant and cold fashion magazine editor in chief. This fashionable textbook class film, which was later touted, has also reinforced Prada's elitism and a slightly complacent sense of identity, like the devil.

But at the moment, the head of the devil is not so complacent. After experiencing the gratifying growth of 44.9% and 12% in the 2012 and 2013 fiscal year, the latest bad performance of Prada group shocked the whole industry: in the 2014 fiscal year, Prada group's global net profit plunged 28%, sales fell 1%; in the world's first and second largest markets, the Asia Pacific and Europe, Prada group had different levels of sales decline. This is the first time that profits have fallen since its listing in Hongkong four years ago.

In the case of other brands such as MiuMiu and Church 's of the group to achieve different growth, the protagonist of the "Waterloo" is Prada, the brand with the same income as 80% of the group.

Just after a year, the rapid decline of the devil's head is a big surprise. Although the weakening demand in the Asia Pacific region, led by the Chinese market, is a common problem that has plagued the entire luxury sector today, the anti-corruption in the mainland market and the turbulent environment in Hongkong are not enough to explain Prada's even worse performance than its rivals and such a rapid collapse.

Like many other luxury brands, the most easily sold handbags play a "stepping stone" role in Prada's sales. They are easy to create and produce, and the profits are frightening. It is easy to see through Prada's earnings report that handbags even contributed more than 65% of Prada group's sales revenue.

It can be said that it is precisely High profit The handbag was worn down by Prada. In the 2014 fiscal year, handbags were the only product category with negative sales growth for Prada.

"We haven't done this brand business for at least 9 months. In 2013, Prada's business was very good. However, last year it frequently increased prices, and star products were too single. Competitors launched some new products at the end of last year and early this year, but Prada still relied on killer packages to push the market. Moreover, the quality of products is often a problem, and business can not be done. The boss of a large scale buying business in Europe complains to me.

Normally, luxury brands will increase prices one or two times a year. However, after the slow growth in the second half of 2013, Prada raised four prices last year. In the past, customers spent about 100 pounds on leather bags, which now cost 1500~2000 pounds. Not only that, but there is not much new stuff.

　　 Handbag The sharp increase in price brought the embarrassment of Prada brand positioning.

You might say that Prada's attempt to improve its positioning is probably a good thing. Luxury brand This helps protect itself. But with the increase of price, the luxury and exclusiveness of Prada brand are decreasing. Frequent appearance of quality problems, Chinese OEM from time to time, and excessive production of cheap products by outlets outlets have greatly affected and diluted the image and connotation of the luxury brand in Italy.

Recently, competitors or deep mining of brand genes and stories, to educate and strengthen ties with Chinese consumers in a deeper culture, or to keep up with the times to turn new products into classic products, or to rely on the performance of new designers, by contrast, Prada's marketing, products and design are all without interest.

"Compared to LouisVuitton's trip, Hermes respected traditional handwork. What is the core value of Prada's brand now? It's hard to give key words. Compared with the global cultural tours of Chanel and Dior in recent years, Prada not only failed to act, but always associated with quality problems and OEM, and lost the cultural connotation of this key luxury gene, Prada was lost and not aware of it. Friends in the luxury industry have no secret of their concern for Prada.

In the face of a sharp increase in price but gradually losing brand reputation and lack of innovation, Prada naturally goes to its competitors. Ironically, Prada also faces internal friction with its own sub line brand MiuMiu. This main brand is quite high in some designs and products, so it is sometimes difficult to distinguish Logo from others.