Category: Prada

Chinese shoppers are buying fewer Prada replica bags

It looks like China doesn’t wear Prada any more.

The Italian luxury brand Prada reported a 26.6% fall in net income in 2016 on Friday, blaming weak sales in China for the slump.

“Difficult times on Asian markets had a significant impact on sales performance throughout the region, especially in Hong Kong and Macau where reductions in local consumption and in the flow of tourism hit harder than elsewhere,” the group said in a statement on Friday.

Prada shares have collapsed 42% in the past 12 months, after concerns about the health of China’s economy and the ability of its consumers to continue splurging on luxury items – started to emerge.

Chinese President Xi Jinping’s crackdown on corruption has also hit other premium brands, because wealthy officials are less likely to buy expensive items.

Asia Pacific is the most important market for Prada outlet, with the region making up a third of the group’s global sales. Prada reported sales of just over $1 billion in the 12 months to the end of January in the region, a decline of 16.1% compared to 2014, including currency fluctuations.

The company also blamed the Paris terror attacks, social and political tensions worldwide, and currency fluctuations for its poor results. Prada said those market conditions are still present, making any forecast for 2016 uncertain.

Prada is not the only luxury brand hit by the Chinese slowdown. Hermes, Burberry, Hugo Boss, and others also reported weaker sales amid the concerns about China’s slowing economic growth.


2016 Prada is in trouble

Prada is in trouble. On April 8, the Italian luxury group reported results for 2015 (pdf) that were its worst in years. Profit fell a staggering 27%, edging out last years dismal results. Today (April 11), the Italian labels share price is plunging.

Prada, which also makes Miu Mius replica handbags and Churchs shoes, blamed several things, including volatile currency fluctuations and the recent terrorist attack in Paris. But China is the biggest one weighing it down.

Asia Pacific rivals Europe as Pradas largest market, each separately accounting for 35% of Pradas total sales, according to its latest figures (pdf). China makes up by far the largest portion of those Asian sales. But in 2015, Asia and China were the only geographies that saw sales drop. In China, the decline was more than 8%. Excluding the effect of changes in exchange rates, it was 22%.

Its troublesome, as China has long fueled Prada outlet business. As Chinas GDP growth has slowed to a level it hasnt seen since 1990, sales that once seemed guaranteed have been dwindling for more than a year. Exacerbating this is the ongoing anti-extravagance campaign launched by Chinese president Xi Jinping, which has curbed the gifting of fancy watches and pricey replica handbags among Chinese officials.

Prada isnt the only brand suffering. Bain & Company estimated that Chinas luxury market shrank 2% in 2015, an acceleration over the previous year.

But Prada in particular seems to have lost some luster among Chinese luxury shoppers. A report last year by Millward Brown, a brand-strategy consulting group, examined the diminishing cachet held by select brands and found that replica Pradas brand value dropped more than any other brands from 2014 to 2015. China was the greatest factor. By comparison, Chanel and Louis Vuitton both gained in brand value.

While the clothes in Pradas recent fashion shows have been lauded as the labels best in years, Prada is still a business built on replica handbags, which it made abundantly clear in its last runway show. Yet even Prada replica fans feel the bags arent what they used to be.

Investors may start looking for a new vision from the companys management, which for decades has been Miuccia Prada, 66 years old, and her husband, CEO Patrizio Bertelli, who turned 70 on April 6. It certainly doesnt help that the companys CFO recently resigned after joining the label in 2004.

What they have to do is basically relaunch the cheap Prada brand, an analyst at investment firm Sanford C. Bernstein told Bloomberg in response to the latest earnings.

It wouldnt hurt to find new customers somewhere other than China.

This story was updated with the sales drop in China excluding the effect of changes in exchange rates.


Prada’s New Fall Replica Bags Will Arrive in Stores This Week

Pradas teaser videos for its Fall 2016 collection showing at Milan Fashion Week today might be premonition, but you dont need to be a seer to get your hands on the Prada UK brands latest replica bag styles. The neutral-toned Pionniere and Cahier bags will be available for purchase at the houses Milan, Paris, and London stores on February 26. (New Yorkers, dont fret. Both will arrive in Manhattan at Pradas Madison Ave., Fifth Ave., and Broadway stores on March 4.)

Both silhouettes feature bronze-hued hardware and thick shoulder straps. The Pionniere, a small, rounded flap bag, was introduced at Prada Replica Fall 2016 mens show, carried by hands covered in check gloves and and gilded metal bracelets. The larger shape, the Cahier, is inspired by the bindings of antique books and features black color-blocking and accentuated metal trim.

The news that Prada Outlet will adopt an accelerated delivery schedule for its replica bags follows proclamations from other Italian brands as well as French ones against see-now-buy-now runway shows. But if theres one thing we know for sure about Prada, its that the house doesnt play by anyone elses rules.


Chinese shoppers are buying fewer replica Prada bags

It looks like China doesn’t wear Prada any more.

The Italian luxury brand replica Prada reported a 26.6% fall in net income in 2015 on Friday, blaming weak sales in China for the slump.

“Difficult times on Asian markets had a significant impact on sales performance throughout the region, especially in Hong Kong and Macau where reductions in local consumption and in the flow of tourism hit harder than elsewhere,” the group said in a statement on Friday.

Prada shares have collapsed 42% in the past 12 months, after concerns about the health of China’s economy – and the ability of its consumers to continue splurging on luxury items – started to emerge.

Chinese President Xi Jinping’s crackdown on corruption has also hit other premium brands, because wealthy officials are less likely to buy expensive items.

Asia Pacific is the most important market for Prada outlet uk, with the region making up a third of the group’s global sales. Prada reported sales of just over $1 billion in the 12 months to the end of January in the region, a decline of 16.1% compared to 2014, including currency fluctuations.

Related: These companies will suffer most if China stalls

The company also blamed the Paris terror attacks, social and political tensions worldwide, and currency fluctuations for its poor results. Prada replica said those market conditions are still present, making any forecast for 2016 uncertain.

Prada is not the only luxury brand hit by the Chinese slowdown. Louis Vuitton, Burberry, Hugo Boss, and others also reported weaker sales amid the concerns about China’s slowing economic growth.