While its biggest rivals are thriving in China, Prada lately finds itself struggling there.
The company reported on Aug. 1 that sales in Greater China fell 2% in the first half of the year.
It’s a modest dip, but it comes at a moment when competitors such as LVMH (owner of Dior, Celine, and Louis Vuitton) and Kering (owner of Gucci, Saint Laurent, and Balenciaga) are crowing about their strong performances in the region.
降幅不大。但出现的时机正是LVMH（Dior, Celine, Louis Vuitton的所有者）以及Kering（Gucci, Saint Laurent, Balenciaga的所有者）夸耀他们在这个地区强劲表现的时候。
“Unheard of” is how Michael Burke, CEO of Louis Vuitton, recently described the company’s growth in China.
The moment should be opportune for Prada, too.
Chinese nationals are already the world’s biggest luxury buyers, according to research from management consulting firm Bain & Company, and the Chinese market is still growing far faster than mature ones such as the US and Europe.
But the Italian label recently seems unable to match its competitors in connecting with what it has called its most important group of consumers, despite already getting about 23% of its sales from Greater China (and that’s not including the many purchases by Chinese nationals outside their home country).
Prada first raised warning signals about a China slowdown back in March.
It pointed to Chinese tourists spending less in Hong Kong and Macau, a trend that has been affecting luxury labels broadly.
But while a rise in luxury spending on the mainland has offset the problem for many luxury brands, it evidently hasn’t for Prada—even though company executives said on a call with investors today that they’re seeing more positive trends on the mainland.
He struggled, but he couldn't escape.
The company is struggling.