According to Prada CEO Patrizio Bertelli, the appetite for luxury products is still strong, particularly in China. While the international luxury sector is experiencing a decline in sales that could reach 30 to 35% by the end of the year, China remains a standout market. Following the lifting of the Chinese lockdown in March, Prada has seen positive signals and significant sales growth. In June, sales reportedly skyrocketed by 60%, followed by a 66% increase in July. Bertelli mentioned that Prada’s sales in mainland China have already surpassed the figures from 2019, with double-digit growth since the beginning of the year. The brand also experienced overperformance during Qixi, the Chinese Valentine’s Day, on August 25th.
Prada is not only witnessing success in China but also making significant strides in digital retail. The brand is focused on eco-responsible initiatives, a licensing agreement with L’Oréal, collaboration with Adidas, and the recent appointment of Raf Simmons alongside Miuccia Prada. Patrizio Bertelli highlighted the brand’s efforts to develop new products, expand their sales network, and integrate digital technologies. With international flows disrupted by the COVID-19 pandemic, Prada aims to leverage digitalization and cater to Chinese consumers who may increasingly make luxury purchases within their own borders. Prada expanded into Chinese marketplaces last year, including the TMall platform operated by Alibaba, and this move has paid off. In the first half of 2020, the Asia-Pacific region accounted for 44% of Prada’s sales.
If you want to learn more about the impact of the crisis on luxury consumption in China and the prospects for marketplaces, you can read an interview with Alexis Bonhomme, Vice President Greater China and Asia Pacific at the online fashion platform Farfetch. You can find the interview here. Another useful resource to explore is the Prada website to stay updated on their latest initiatives and offerings. You can visit their website here.
