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Luxury Brand Prada Group Intends To Expand In China

2012/4/2 20:32:00 17

Despite the sluggish consumption in the euro area, driven by strong demand in China and the Far East,

Prada

Its annual performance exceeded its previous expectations, and its profit increased by 72% in 2011.

The company said it will open 160 stores in the next two years to expand its retail network to more than 500 stores.

Half of the new stores in 2012 will be located in the "fast-growing" market in China, other parts of Asia, the Middle East, Brazil and Morocco.

According to the World Luxury Association report, in 2012, after the peak consumption of new year's day, Spring Festival and Valentine's day, China's luxury consumption will exceed 14 billion 600 million dollars.

Alan Fisher Fischer, an analyst at CLSA in Hongkong, estimates that luxury goods sales in Greater China will grow by 25% annually and will account for 44% of the world's total by 2020.

From Gucci and Ferragamo to carmakers BMW and Mercedes Benz.

Luxury goods

Companies can confirm that the frenzied shopping force of the Chinese rich is urging them to revise their sales targets in Greater China.

Paul Cadman, chief executive of Ferragamo Asia Pacific, said: "by 2012, China will be the first market of Ferragamo, but maybe it will be 2011."

In its prospectus, Prada (Prada) mentioned that in January 2007, Prada had 8 direct outlets in China, and by January 2011, it had increased to 18. It is estimated that by January 2014, the number of outlets will increase to 30.

Such expansion has so far increased rapidly.

In 2010, LV had 35 stores in 28 cities in China, accounting for nearly 40% of global sales, while the traditional luxury consumption market accounted for 19% and 23% of Europe and the United States respectively.

Nowadays, even Kunming has the flagship store of LV.

In 2010, the 20 largest domestic luxury consumption city ranked Kunming in twelfth place, far higher than the index of the same level of development in China.

In fact, before the rapid expansion of the "big names", they used to pay large sums of money to recover the country in large quantities.

Dealership

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For example, in 2007, Armani set up a sole proprietorship company in China and announced the opening of a direct store. In January 2008, MontBlanc recovered the agency power of Shanghai Ruixin clock Co., Ltd.

In this wave of agency recovery, the focus on profit seeking agents can not agree with brands in terms of brand training, image maintenance, and so on. This has become a big reason for "big players" to recover.

But after reclaiming the agency, luxury brands have not changed much in terms of brand image and service.

The biggest change is that the speed of luxury brand shops is greatly accelerated.

However, these luxury brands have suffered from "acclimatized" in China. The brand that originally captured the hearts and minds of people with high quality service and good user experience in China is only responsible for selling goods to consumers in China.

For example, at present, most luxury brands do not have special maintenance centers in the mainland, and consumers who want to get the authentic service of Dior and LV must be sent back to their place of origin.

Most of the bags wanted to be protected, most of them could only rely on local "small shops".

Compared with the luxury sale service of luxury goods handed down abroad and no need for invoices to be followed, the Chinese luxury aftermarket is indeed like a crude roadside stall.

It can be seen from a set of data. In 2010, about 67% of the mainland's luxury market growth came from new consumers. This shows that the loyalty of Chinese luxury goods consumers is very weak, and luxury brands do not carefully manage existing customers.