Among other reasons, Prada is renowned as all designers and fashion operators consider the brand to be a real landmark. Yet, lively enthusiasm and high regard for its creative and product models hardly turn into relevant selling figures alike. The New York Times reported the news after carrying out a survey. In fact, the US daily newspaper closely observed the emotional involvement, in the events arranged by the Italian fashion brand, and the success of every collection, which are discrepant with fluctuating sale performances.
The downturn
“In 2014, Prada’s profits dropped by 28%, down to 451 million euros, following a slowdown in China along with major investments made by the brand. The year after, profits further decreased by 27%; in 2016, they declined by 16% and went down by 7% in 2017, remarked Elizabeth Paton in the New York Times. Last year, Prada went through several disappointing accomplishments throughout the year, despite the fact that sales first increased in five years”. Reading such analysis, we wonder if Prada’s collections might become just a proof of concept for a niche of individuals only, namely professionals and insiders, who would enjoy and appreciate its value. Yet, considering final buyers, still we need to verify that.
The revamp
On the one hand, Elizabeth Paton recalls that Miuccia Prada, in 2017, asked people not to evaluate her owing to sales (“my life is much more important than sales”); on the other hand, she also emphasizes that the brand has implemented a revamp plan, which is already proving successful. “Looking at the financial results, achieved in the first six months of 2019 and made public last month, we can see that profits are going better, and sales have slightly increased”, reported the New York Times.
Digital underestimation
In addition, “Matchesfash-ion.com online luxury outlet claimed that Prada is steadily one of its best 10 brands with regard to women’s and men’s apparel stock, as demand for its products has been increasing in the last seasons”, carries on Paton. Lyst e-commerce platform said that Prada online search augmented by 156% this year”. Moreover, RealReal, a second-hand portal, announced that Prada was the fourth most searched brand on its platform”. The gist, then, might be about the underestimation of some channels and selling tools. Patrizio Bertelli himself considered such option while looking into the matter. As reported by The New York Times, last week he sent an email to say something about the digital channel: “I would not talk about oversights. I would rather say that we underestimated the rapidity of the market demand for a few modifications”.
Pictures taken from prada.com and nytimes.com
