PRADA Asia Pacific sales increased by 40%

This year's domestic luxury goods market performance differentiation Burberry LV "slam brake"

Earlier luxury brand Burberry issued a profit warning, the market worried about the prospects of luxury goods. However, the interim results announced by PRADA a few days ago undoubtedly injected an invigorator for the entire market. PRADA's results for the first half of this year showed that it achieved a net profit of 286 million euros during the period, a year-on-year increase of 59.5%. The sales of all kinds of commodities in various regions of the world have increased substantially. The growth in the Asia-Pacific region has been particularly strong, becoming the fastest growing company. In the region, net sales increased by 44.7%. Analysts said that Chinese consumers with super purchasing power are still the absolute main force supporting the growth of global luxury goods.

Although PRADA's mid-term data shows strong growth, in fact, from the middle of August, luxury brands have shown a difference. Some media pointed out that brands that specialize in manufacturing lower-priced products are being hit by the economic downturn, but brand growth on the high-end routes is still good. Hermès raised its 2012 sales growth target to 12% last month.

The strong growth report in the Asia-Pacific region showed that all regions achieved growth in the first half of the year and the Asia Pacific region thrived, making it the fastest growing company in the region. Data show that the market growth rate and output in the Asia-Pacific region are all new highs, with net sales of 532.5 million euros, an increase of 44.7%, accounting for 34.9% of total net sales, up two percentage points from the same period last year. According to reports, its growth comes almost entirely from retail channels. Some media said that due to strong growth in the Asia-Pacific region during the period, Pradica CEO Bertelli Bertelli said at the analysts meeting that the company aims to maintain double-digit growth in same-store sales.

As the second largest market, Europe’s total net sales amounted to 348.7 million euros, accounting for 22.9% of total net sales, which represented an increase of 39.1% year-on-year. The report shows that the main reason is that the depreciation of the euro has led to the continuous increase in the number of passengers.

In terms of product category, sales of leather products rose by 52%, and sales of clothing and footwear rose by 17% and 14% respectively. Geographically, sales in the Asia Pacific region rose by 44%, while in the European region, due to consumer spending, revenue increased by 31%, sales in the Americas increased by 30%, and Japan rose by 34%.

Reports on the sluggish sales of multiple luxury brands, such as weak sales of luxury goods, have come to light. Luxury professional researchers believe that instead of the slowdown in luxury goods, the luxury market has divided. In fact, since 2012, a number of high-end brands in the jewelry, watch, automobile, luggage and other industries have shown that the performance of the Chinese market has begun to show signs of deceleration after years of accelerated growth.

This reporter learned that the luxury brand Burberry's sales in the second quarter (first quarter) increased by 18% year-on-year, and in the previous six months, the growth rate was as high as 34%. Due to the sluggish performance in the Asia-Pacific region, Burberry's performance did not reach expectations. After the release of the results, Burberry's shares fell 7% in the London market. Similarly in the Asia-Pacific market performance "battle" and luxury goods giant LVMH Group, although the overall sales growth in the first half of the year to maintain growth, but China's sales have rarely seen a slight decline.

Expert opinion Wang Fei, a researcher at the Center for Research of Luxury Goods at the University of International Business and Economics, told this reporter that luxury brands with better brand reputation will be more resilient. “The overall economic outlook is the main reason that affects luxury goods sales, and seasonal factors Relatively less impact."

At present, young people aged 25 to 40 have a higher level of maturation in luxury goods consumption. “Because of their overseas experience and high-end consumption experience, coupled with their ability to quickly accept new things, this consumer group is relatively mature. ."

Some analysts pointed out that in the context of China's economic growth slowdown, short-term irrational and external conspicuous consumption of luxury goods will be subject to certain restraint. At present, luxury brands that are more personalized, have cultural connotations, can maintain constant values, and keep up with the times can win the favor of Chinese high-end consumers.