Prada says e-commerce gross sales elevated by greater than 200% in 2020, with youthful prospects
Prada’s on-line gross sales grew by greater than 200% final yr, the Italian style group revealed on Wednesday as a part of its FY2020 report. Producing 2.42 billion euros (2.9 billion euros) billion) in income for the yr (down 24% year-on-year, however solely 8% for the second half), the group – which consists of its flagship model Prada, in addition to Miu Miu, Church’s, Automobile Shoe and the “historic” pastry store Pasticceria Marchesi – cited a “gradual enchancment” in gross sales “in all geographies” throughout the yr October and December in comparison with the identical months in 2019. “
Milan-based Prada Group stated in a press release on Wednesday that its retail gross sales, which account for round 90 p.c of income, rebounded within the second half as China led to such a rebound; gross sales in Taiwan and mainland China elevated by 61% and 52% respectively for the second half of 2020, adopted by the Center East (+ 26%), Korea (+ 22%) and the Americas (+ 4%) . Wholesale operations fell 49% in comparison with fiscal 2019 and 20% within the second half of the yr, in comparison with the identical interval in 2019.
The group attributes its rebound capability to “the expansion of native consumption within the second half of the yr in all geographic areas”, in addition to to the “quick, decisive and far-reaching” response of the Group to the looks of COVID-19 .
Addressing particularly the significance of e-commerce, Prada stated the COVID-19 pandemic “has accelerated the digital evolution, strengthening the Prada Group’s omnichannel technique,” gross sales within the group’s e-commerce channel tripling from ranges of 2019 and the increasing digital world. When it comes to “digital channels”, the Group notes that its Prada model skilled “triple-digit progress in views on Instagram” for the S / S 2021 season in comparison with S / S 2020; his Weibo hashtag # PradaSS21 generated 170 million views in a single day in 2020; and the model boasted 32 million and 35 million respectively on Chinese language social media apps Weibo and Douyin, a nod to the sheer significance of the Chinese language client.
On the identical time, throughout a corresponding convention name, the Group declared that its Leather-based Items class had skilled double-digit progress for the second half of the yr in Asia, the USA and the Center East, “because of the profitable launch of recent merchandise. and reinterpretations of iconic merchandise. Based on a word from Bernstein. Reflecting on its client base, Prada revealed that it’s “radically shifting to a youthful technology,” which boasts “higher KPIs when it comes to retention, on common. [order value], and many others. ”He famous that“ outstanding initiatives ”, like his Linea Rossa line,“ match completely into the brand new world centered on sportswear and younger customers.
And but, Prada stated its value positioning “has improved considerably” in 2020 when it comes to its skill to boost costs (and presumably transfer away from markdowns in favor of a sustainable Prada model effort), but additionally when it comes to “the upper perceived worth of the merchandise.” (And talking of markdowns, the Group revealed that by “efficient provide chain administration” it was in a position to “keep away from extra stock”.)
As to the place the Group suits within the broader development of business mergers and acquisitions transactions, he stated throughout the name that he “doesn’t plan to promote” the Prada model, however “might possibly contemplate buying different manufacturers ”.