Luxury fashion brand Prada is setting its sights on doubling its business in China in the medium term, demonstrating its optimism in the country’s potential for growth. Despite the slowdown in luxury demand and economic challenges faced by China, Prada remains confident in its growth prospects. CEO Gianfranco D’Attis highlighted the brand’s focus on investing in China’s market, with an emphasis on store quality over quantity. Prada aims to create larger stores that offer more localized products, enhanced customer experiences, and a wider range of offerings. In addition, Prada is considering the development of a hospitality concept, including a Prada café, which may launch in China in 2024 or 2025.
The brand’s confidence in the Chinese market is supported by its strong performance in the region. The Prada Group, which includes luxury shoemaker Church’s, reported a 10% increase in third-quarter revenues, attributed to its robust performance in Asia and Europe. This growth has helped offset weaker sales in the Americas. Market consultants Bain predict that by 2030, China will account for nearly 40% of global luxury sales.
D’Attis expressed hope that Chinese consumers will resume traveling and shopping in Europe in larger numbers in the future. However, he believes that this will not affect sales in China, as the brand offers a different product range abroad compared to its localized offerings. D’Attis sees the Chinese and international markets as complementary rather than competitive.
Prada is not alone in its optimism towards the Chinese luxury market following the pandemic. Other global luxury brands like Louis Vuitton and Chanel have also organized events in Chinese cities, demonstrating their confidence in the country’s potential for growth in the luxury sector.
Prada’s ambition to double its business in China showcases its determination to tap into the immense opportunities presented by the Chinese luxury market. By prioritizing store quality, localized products, and unique customer experiences, Prada aims to establish itself as a leading luxury brand in China.
Useful links:
– Vogue Business: Prada’s Pandemic Challenges and Recovery in China
– Jing Daily: Prada’s Digital Strategy in China
