Prada Understated Luxury Challenge

In mainland China, Prada is well-known to be greatly credited with the landing of The Devil Wears PRADA in the 2007 movie. In the movie, the black V-shaped lapel blouse and skirt worn by the devil Miranda and the limited-edition beige 2006 autumn and winter handbag that hangs on the head of Miranda appear to be the highlights of the Prada brand. Respect and adhere to the high quality minimalist fashion.

As Italy's legendary absolute first-line brand, starting from the founding of the brand in 1913 by Prada's founder Mario Prada, it was destined to take a higher consumer orientation, because at that time, Prada's customers were almost always famous in Italy. Prada, with its noble, tough, and elegant style, also caters to a group of introverts in fashion circles who need to dress up. Especially in the New York Fashion Circle, Prada's low-key design always gives a smart high-profile and pride to people wearing this brand, and its design is like the temperament of Miranda in the film and is full of powerful female beauty. .

Although Prada was on the brink of bankruptcy in the 1970s due to changes in the fashion environment, since the current head of the brand Miuccia Prada took over, it has begun to reappear even if it was difficult to develop after the economic crisis of 2008. The performance is also growing rapidly.

According to Prada's 2012 annual report, as of January 31, 2013, Prada Group has established 461 directly-operated stores globally, and a network of department stores and independent retail stores in 70 countries around the world. Not only that, published in the famous market consulting agency Millward Brown 2013 annual Brand Z rankings in the world's most valuable brand, Prada as the first to enter the top 100 global list, and was named in a 63% increase in the world in the past year The brands with the largest value-added brands in all categories.



Cross-border marketing

According to the "2012 China Luxury Goods Market Research Report" published by Bain & Company, the world's leading management consulting company, for the top three brands most likely to be purchased by consumers in Beijing and Shanghai, Prada has entered the top three for the first time in the luggage category. Beyond Hermès is second only to Louis Vuitton. This also shows that Prada has always performed well in China.

From leather goods and clothing to shoes and underwear, Prada has become a complete boutique kingdom and its territory has expanded into the world. Today, Prada's “Pale Green Boutique” combines the functional and elegant qualities of the world with its unique design, perfectly complementing Prada's outstanding products.

As the first luxury brand to enter China, Prada continues to maintain its high-end luxury positioning, and uses cross-border marketing to maintain the brand's mystery and freshness.

Prada, who has tasted the sweetness from “The Devil Wears the Goblin,” not only focuses on entertainment marketing, but also extends cross-border awareness to the field of mobile phones. Concerning the Asia-Pacific market's enthusiasm for spending on luxury mobile phones, and having a good impression on luxury mobile phones with brand logos and intuitive features, in 2007, Prada and LG launched a mobile phone with a black body. Combining Prada's simple atmospheric design, it blends the noble atmosphere with the charming technical charm. Although mobile phones are expensive, they are still hotly sought after by consumers. Limited by the characteristics of luxury goods, the phone can only be sold in limited quantities, which makes many fans can only hope "machine" sigh.

In response to this situation, compared to today's luxury goods industry, and not saying that such "light luxury goods" such as Coach is operating on the social media platforms such as Sina Weibo and WeChat client, the Armani and Burberry have begun to operate. Your own brand website. In comparison, does Prada appear to be too high-end and “unfortunate”?

Dr. Zhou Ting, dean of the Institute of Fortune Quality, told the “Global Entrepreneur” reporter that “entertainment marketing and cross-border cooperation have a certain effect on Prada’s brand promotion, but today’s information technology and channels are so developed. These means are no longer as fast or timely as the Internet or new media means.In fact, Prada's marketing promotion is not as active as it is in terms of comprehensive use. Today, China's luxury goods market is rapidly becoming popular and fashionable. Brands need to make 'everyone know, but a handful of people own', Prada should use more Internet marketing methods to promote, otherwise it will lose a lot of market opportunities and audience groups."



New store dystocia

Although the cross-border marketing model has brought Prada a reputation with the world's top luxury brands. However, in the face of the economic slowdown and the anti-corruption campaign after China’s leadership change as a luxury industry-wide background, Prada cannot be left alone.

In Prada's recently released first quarter 2013 financial report, as of the end of April 2013, sales of 772.6 million euros, an increase of 16% over the same period of the previous year. However, compared with the first quarter of last year, the financial report has obviously slowed down.

As Prada, whose vast majority of its performance is achieved through its direct retail channels, is expanding the number of stores is very important. Earlier this year, Prada CEO Patrizio Bertelli has said that "in 2013 we will continue to focus on expanding global retail network," and this year plans to open 70-80 stores, of which China 10-12.

“Each time a new store evaluation is conducted, the following factors are considered within Prada’s necessary considerations: Evaluating the quality, space, location of shopping malls, department stores, hotels, or streets based on a combination of architectural and consumer type considerations. In terms of size, Prada Prada pursues a large space (including men's and women's shoes and accessories) that can create 'overall visual effects',” said Prada Asia Pacific CEO Sebastian Suhl.

However, the figures shown in the financial report are not optimistic, and the slowdown in Prada store expansion has become a clear trend. According to the survey, from January 31 to April 30 Prada did not open a store in the Chinese mainland. The four new franchise stores in the Asia Pacific region are located in South Korea, Singapore and Taiwan. In April, there was a net increase of only one store, and the total number of directly operated stores reached 462.

Patrizio Bertelli told the media that "in the future we will focus on the department stores in the Middle East and South America and the United States." But when the reporter called Prada Shanghai headquarters public relations manager, he said that in the second half Prada in China is still in Shanghai and two Third-tier cities have plans to open stores, and the specific site is still being determined.

Zhou Ting told Global Entrepreneurs that “Prada has a relatively small number of stores in China compared to brands such as LV and Gucci. Marketing in China is 'low-key'. In short, it is not enough. In terms of store layout, Prada needs to have a certain scale, but it is more important to master certain strategies. According to the data of the institute, the second and third tier cities in China are now more rigid in terms of consumer desire and spending power.

At the same time, however, Zhou Ting admitted that Prada also faced many challenges. She suggested that, first of all, media promotion in second and third-tier cities should sink, and local information channels are crucial for local consumers. Second, in order to enhance the interaction between consumers and brands and provide better experiences and services, public relations activities also need to sink. Consumers in second-tier and third-tier cities have lower consumer awareness than Beishangguang, and they need public relations activities to guide consumer cognition and consumption. Third, the brand's services have to sink, and at the same time that stores are opened, services need to follow suit. Consumers in the second and third tier cities are not likely to go to Kita-hiro to do maintenance and repairs. Therefore, the need to do these three points at the same time, Prada has the opportunity to embrace such a large market space in China's second and third tier cities.

As Miuccia Prada, the successor and designer of Prada, said: “I will never be lost. I am always quite rational and sober in the face of changes. I have never been afraid of any change.” To make Chinese consumers more able To understand the brand in a comprehensive way and to take a “low-key” style of luxury, Prada needed some tricks that were not “low-key”.