Prada’s on a roll. Italy’s leading luxury group in terms of turnover, it is also one of the first to see its sales boom in Asia, particularly in China, since the reopening of its physical stores. The results look promising for 2020, while the Milanese brand had already seen its turnover rise sharply in 2019 with a net profit up by 24.5% to 255 million euros.
“In Asia and China, sales are growing at important — double digit — rates and we are confident that this trend can continue also in the months to come.” Patrizio Bertelli, CEO of the luxury group, was happy to say in an interview with WWD fashion magazine on Thursday July 2nd.
The Asian sales of the Italian Prada group have indeed experienced strong growth in recent weeks since the situation normalized after the health crisis, with a very high rate of consumption: “We have seen a rapid and sustained return of consumer purchases” says Bertelli, who said he is “confident” that this momentum recorded in Asia will continue in the coming months.
An upward trend, even though the group has recently had to increase the prices of its products to compensate for the financial difficulties resulting from the coronavirus crisis and, in particular, the break in the supply chain.
“The recent logistical and production difficulties have forced us to raise prices to offset the increase in organisational and raw material costs.” says the CEO, pointing out that these are “single-digit” increases.
This dynamism can be explained by the various measures undertaken by the brand over the last few years, in particular the renovation of its distribution network, but also the focus on marketing and digital with a strong desire to develop its online sales.
Prada’s e-commerce has moreover recently received significant investment and is now able to offer a growth experience that is “captivating and in line with market expectations” and “in triple digits” according to the Italian CEO.
Prada is also banking on its participation in the Digital Fashion Week of Milan’s National Chamber of Fashion to be held in September. “I am sure – said Patrizio Bertelli – that the opportunities offered by the digital platform for the presentation of collections will remain a permanent appointment also in future editions, keeping in mind that the physical element of the presentation of a new collection will continue to be central“.
As for Bertelli’s succession plan, it already seems to be in the hands of his son Lorenzo, 32 years old, head of marketing and communication at the fashion house, who recently stated in an interview with The Business of Fashion that he was not ruling out replacing his parents at the head of the company in the future.
“I like to challenge myself and solve problems. I simply want to enjoy what I’m doing. I’m now enjoying what I’m doing. And so…why not?” he said, answering a question about succession plans at Prada.
Featured photo : © Prada
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