Prada China Store Price Reduction 2%-3% Luxury Discount Discount Or Normalization

Following the price adjustment of luxury brands such as Gucci and LV, Prada also announced the reduction of the price of some core brands Prada and MiuMiu in the mainland in the Qingming holiday, with a reduction of 2%-3%.

The price adjustment channels include offline outlets, Prada China official website and Miu Miu China official website.

Price cuts to promote luxury consumption return

According to the economic daily - China economic network fashion channel, since April 1st, the VAT reduction policy has been formally implemented.

In response to this policy, luxury brands such as LV, Gucci, Earl, MontBlanc and so on announced the price reduction. Subsequently, Prada also announced the reduction of the two core brands of the group, that is, the price of some products of Prada and Miu Miu in the Chinese mainland market.

According to the statistical analysis of market demand and investment forecast analysis of China's luxury goods industry released by the foresight Industry Research Institute, in 2018, Chinese luxury goods consumption reached 145 billion 700 million US dollars, an increase of 7%, accounting for 42% of the global luxury goods market.

Among them, the consumption of luxury goods abroad is 107 billion 300 million US dollars, the growth rate is 4%, the total domestic consumption is 38 billion 400 million US dollars, the growth rate is 17%, the consumption outflow is still very serious, and 74% of the luxury purchases happen outside China.

From the point of view of reducing domestic prices, the reduction of the price difference between domestic and foreign stores will make more consumers willing to spend in domestic shopping, and price factors will directly guide the luxury consumer group to store stores, and promote the return of domestic luxury goods consumption.

According to Bain, a global management consultancy, the proportion of mainland luxury consumption in 2025 may be in line with overseas luxury consumption.

Discount or normalization of luxury goods prices

Prada group currently has 5 sub brands, according to relevant reports, the Prada only targeted at two core brands, Prada and Miu Miu, and made price adjustments in the Chinese mainland market.

In this regard, Zhou Ting, President of luxury goods expert and customer research institute, said that Prada and Miu Miu are the two core brands of Prada group, which are larger in volume. They are also brands with obvious price difference. They are the key to decide the sales of the group. If we choose to reduce the price of these two brands, the market effect will be more obvious.

She believes that luxury brands will be normalized and discounted, and now is just the beginning.

In the near future, more luxury brands will follow the price cut.

Although the price reduction of luxury brands may not have a substantial impact, it has formed a signal that affects the impression of consumers, that is, the price gap between domestic and overseas is shrinking.