How Can Prada Save Itself From Difficulties?

As we all know, the current luxury brands are having a bad time, but among the most famous ones, the worst performing Prada is Prada.

Recently, Prada's stock price has fallen to the lowest price since its listing.

In order to save the decline, the group closed a number of Chinese stores and launched discount promotions.

But can these actions really save the decadent Chinese market? Can it save the brand?

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By the end of December 1st, the lowest price of Prada was HK $27.1.

This also confirms the negative evaluation given by Prada to the major investment banks in August.

On the contrary, LVMH, Kai Yun group, Burberry (Bo Baili), Dior (Dior), but because of the arrival of the holiday season, share prices have risen slightly.

This is also related to some of Prada's strategies.

In the whole luxury industry, in order to counter the decline, Prada has been conservative in its choice of price cutting and closing.

Besides,

There are more and more negative news.

In June this year, a woman bought a Prada handbag for only two weeks, but after Prada headquarters identified it,

No refund.

In the same month, Beijing industrial and Commercial Bureau sampling clothing shoes, Prada boarded luxury quality blacklist.

It is precisely because of these conservative strategies and slow reaction speed that Prada group has been at the bottom of luxury brands.

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On the same day, the two brands of Prada and Miu Miu launched half off promotions in Hongkong.

It is understood that the Prada discount products include leather and clothing, of which leather products 40 percent off promotions, clothing is as low as 50 percent off, Miu Miu part of the handbags and wallets are promoted by 50 percent off.

But the performance of the stock market has already reflected that the group's pricing strategy has not worked very well.

In addition to price cuts, Prada has closed from 49 in 2014 to 33 this year to reduce costs to cope with the weakness of the Chinese market.

But for Prada, which is too dependent on the Chinese market, shutting down will not save this decline.

As of July 31, 2015, the net profit of Prada group increased 4% to 1 billion 823 million euros compared with the same period last year.

The Asia Pacific market is still weak, showing a similar negative trend in the first quarter of the year.

In the first quarter of fiscal year Prada, there was only a 0.6% increase in the Asia Pacific region, with only 5% growth in the Asia Pacific market in the first half of this year.

From the two quarter results announced by luxury groups, the LVMH, Kai Yun group and Burberry all grew, and only Prada maintained a downward trend.

From the 2015 first half of the group's earnings report, group net profit decreased by 23.0% to 188 million 600 thousand euros compared with the same period last year.