Xiren Zhang’s Post

For the first half ended June 30, 2024, and despite a challenging macro context, Prada posted excellent results with a strong retail sales growth of +18% YoY at constant exchange rates and a net revenue increase of +17%. to €2.55 billion, largely driven by its retail network and beating consensus estimates. Retail sales for Q2 aligned with the half-year results at +18% YoY growth.   This outstanding growth was driven by all the regions, most of which experienced double-digit growth, and its brands, fueled by Miu Miu. The latter experienced retail sales growth of +93%, while Prada continued its more mature above-market sales trend with a +6% increase in sales, compared to the same period in 2023. Miu Miu’s commercial success was a result not only of outstanding creative prowess but also of successful activations, highly acclaimed fashion shows, as well as special projects like Miu Miu Upcycled and several collaborations. Regarding regions, APAC showed +12% growth for H1 (with an embedded slowdown in Q2 versus Q1), while Europe posted excellent +18% growth. The Americas experienced good sequential growth at +7%. The two standouts for H1 regionally were once again Japan at +55% growth and the Middle East region, which experienced an exceptionally robust +20% growth (all at constant exchange rates). Management re-iterated that in a challenging macro-economic environment, the Group continues to exercise the disciplined execution of its business and distribution strategy, as well as remaining agile and invested in capitalizing on the strength of its brands Prada and Miu Miu, in terms of product range, branding communication, and brand positioning. #CXG #CX #Customerexperiencegroup #customerexperience #industrynews #prada #miumiu #luxurybrands #luxury #financialresults

Prada Group delivers H1 sales growth 👏 The Italian luxury fashion house has revealed a 18% increase in first-half revenue, totalling €2.2bn. In a company statement, the group said that Prada brand retail sales grew by 6% and Miu Miu achieved an impressive 93% rise in retail sales. Sales in the APAC region rose by 12%, with Japan performing particularly strongly and growing by 55%. Europe sales were up 18%, Americas by 7%, and the Middle East by 20%. Andrea Guerra, CEO of Prada Group, commented: "In the current macroeconomic and geopolitical context, industry dynamics have become more challenging; this requires us to be agile and sharp on our product range, communication and overall positioning, to continue to drive client engagement and to progress in our journey towards retail excellence." #News #Fashion #Luxury #H1 #Revenue #Sales #Growth #Prada

Louis Vuitton shares dropped by 5% this morning after poor results. This follows a similar story for Burberry. Additionally, luxury watch sales have declined (Rolex quitting Formula 1 to be replaced by Tag Heuer, feels like a downgrade?). Gucci reporting shortly, with some apprehension. Luxury is under pressure. This is partly driven by poor sales in China, where a combination of slowing growth and purchasing goods from Japan (low Yen makes it very favourable to purchase in Japan at the expense of local China sales), but also weak growth in the West (dreadful PMI numbers in Germany, not much better in France). Burberry has tried cutting prices, with little impact on sales and potentially damaging the brand. What will LVMH do to drive sales? This is where Marketing Directors and Brand Managers need to show their skills, and ruthlessness. Focusing on those brands that make money or potentially will. Putting resource into growth drivers, no vanity projects, etc. Are they up to the task? Spotlight is on them now.  #bonfireofthehandbags #brand #luxury #LVMH #luxurybrands #louisvuitton #burberry #handbags #marketing

As someone who's more accustomed to crunching numbers than keeping up with the latest fashion trends, this post from The Business of Fashion really underscores the significance of paying attention to your demographic data: 💡 In business, there's always potential hidden within the numbers, even if they don't align perfectly with your current campaign objectives. Casting a wide net and gathering data is essential for laying the groundwork for success. ❓ After all, how can you tailor your message if you don't know who you're addressing? And if there's enough interest out there, why not take the leap and carve out an additional market for your brand voice? It's all about seizing opportunities and expanding your reach #MarketingInsights #SEOtips #GoogleAnalytics #DataDrivenSolutions

Prada is setting the stage for what audiences have been looking for – recognition. Fashion is for everyone, it doesn't matter who you are or how old you are. Seeing Prada enforce this idea will hopefully encourage others to make this a permanent fixture within the luxury industry. #MiuMiu #Fashion #Luxury #BusinessGrowth

How did Miu Miu grow by a dramatic 58 percent last year? The brand's success is due to a product and styling revamp that speaks to a broad church of consumers, “conversational” pieces and strengthened operations. Miu Miu launched the micro skirt conversation after their S/S 22 collection and countless stylists recreated the multi-layered peekaboo underwear look. Their slip-on silk ballet flats in pastel shades tipped the ballet-core micro trend into a major fad. Now, to create covetable styling pieces is one thing, but to cause ripples so that similar styling affirms the brand’s domination - that’s a cult following. The entire fashion world is waiting to see what they do next, clutching their credit cards. Will Miu Miu surprise us with their next move? Or simply rely on recreating their recent fool proof formula until it gets old.

PRADA SALES RISING 16% IN THE FIRST QUARTER METAVERSE FASHION MAGAZINE Prada Group defied a slump in the luxury sector, with sales rising 16% in the first quarter, driven by strong growth in Asia and a surge in Miu Miu sales. Revenue hit €1.19 billion ($1.27 billion), exceeding analyst expectations of €1.14 billion. Sales growth was fueled by Europe and Asia Pacific, particularly Japan due to tourist spending. The Americas lagged behind. Prada's main label grew 7%, while Miu Miu, representing 15% of sales, skyrocketed 89%. "Over the first quarter, we delivered a solid performance in a more challenging market environment", Prada Group Chairman Patrizio Bertelli said in a statement. "While the industry is experiencing new dynamics, we retain our ambition to deliver solid, sustainable and above market growth," Chief Executive Andrea Guerra said. French luxury group Kering said on Tuesday it expected a 40% to 45% plunge in first-half operating profit, after first-quarter sales declined. LVMH's sales slowed down in the first quarter, with only 3% growth. ($1 = 0.9356 euros) https://lnkd.in/g6qgbBaA #metaverse #fashion #ai #web3 #investment

The recent announcement by Kering, owner of luxury brands such as Gucci and Yves Saint Laurent, regarding an expected decline in its first-quarter sales, reflects the significant challenges facing the luxury sector as a whole. This decrease in demand is particularly pronounced in the Asia-Pacific region, a key market for many luxury brands. The stagnation of demand for luxury goods, especially among Chinese consumers, poses a common challenge for all luxury brands, despite initial expectations of an economic rebound in China. Even major players like LVMH and Hermès are not immune to this trend, although some have fared better than others. This period of slowdown contrasts with previous years when the luxury sector experienced robust growth. Brands are now faced with the need to rethink their strategies to adapt to this new environment, where competition is fierce and demand remains uncertain. In this context, brands must prioritize desirability and forge meaningful emotional connections while also establishing cultural relevance. Beyond geographical expansion and product innovation, fostering personalized experiences and exceptional customer service is crucial for building loyalty. Moreover, embracing digitalization and forming strategic collaborations remain essential to attract a diverse clientele seeking originality. #luxury #advisory

Last week, Joshua Schulman was announced as the new CEO of luxury British fashion house, Burberry. As the fourth CEO in 10 years, Schulman’s appointment was announced as dividends were suspended and a profit warning was issued. Some investors (and customers!) had hoped the shuffle might result in a change in strategy - the introduction of lower priced products in a move toward #accessibleluxury.  But Burberry remains committed to an upward push - hoping to position itself amongst European luxury brands like Chanel. Watch below to learn more about the ins and outs of brand positioning, luxury and customer perception in the #fashionIndustry. #Primerli #BrandStrategy #LuxuryFashion

The continued decline of Burberry has been fascinating to watch. Off the back of announcing ex-Coach Joshua Schulman at the helm on Monday, they have seen their share price plummet 19% in the past week. Whilst sales have been dropping for some time now, its always worrying to results like this for the once cornerstone of British luxury. In an increasingly competitive market, it remains to be seen if Burberry can hold its ground against industry giants like LVMH, Chanel and Hermès. We know they've been missing the mark for some time at the higher end of the market, and customers just aren't as interested. Will a return to its roots help Burberry regain its former glory? What are your thoughts on their future, is there a clear way forward? #retail #luxury #fashion