With the current economic crisis due to inflation and the pandemic that started a couple of years ago, many brands and establishments have gone out of business, especially the smaller and less stable ones. But did the economic crisis have a negative effect on Prada? Did it even affect the brand?
Even with everything happening in the economy, Prada is not going out of business. It is one of those brands thriving more than simply surviving.
Here is How Well Prada’s Business is Going:
Prada experienced some decline in sales, but it recovered quickly during the second half of 2020. While the brand suspended its operations in Russia, Prada has had a strong start to 2022 overall. It is one of the brands that made a good recovery after the pandemic.
Is Business Still Going Well for Prada?
Just like it did for all businesses, the pandemic made a dent in Prada’s business during the first half of 2022. However, the sales gradually increased during the second half.
The quick recovery in Asia causes an increase in sales. From October to December 2020, Prada did not register any drop in sales.
Overall, the business is still going well for Prada.
The brand made such an impressive recovery that it was able to close 2020 and 2021 with increased profits.
According to Patrizio Bertelli, the Chief Executive Officer of Prada Group, “We successfully reached a good level of profitability and generated significant cash flow, improving our financial position. These results give us the confidence to face the upcoming rebound as soon as the most critical phase of the pandemic will end.”
Now that the world is recovering from the pandemic, Prada started 2022 strong even though it suspended its retail operations in Russia because of the current situation. Russia accounted for roughly 2% of Prada’s sales in the previous year.
Although he admitted that it could be difficult to predict the impact of the situation between Ukraine and Russia on the global economy, the brand’s CEO is feeling positive about Prada’s growth as they are still on track with their long-term strategy,
Is Prada Still Considered Luxurious?
Headquartered in Milan, Italy, Prada is one of the world’s most popular luxury fashion brands. It started as a leather goods shop, eventually becoming one of the biggest names in luxury fashion.
Prada specializes in leather handbags, clothes, shoes, accessories, and fragrances for both men and women.
Even with the economic crisis happening worldwide, Prada is still considered luxurious.
The quality of Prada products has not diminished. The brand’s products are some of the most coveted luxury designer goods.
Are Prada Products Still Valuable?
Prada is generally known as a luxury fashion brand, so their products are expected to be quite expensive with high quality.
The brand boasts of high-quality products made from the finest materials. Prada products are known to be both fashionable and extremely durable.
Because of their excellent quality, products by Prada are considered valuable. The value of Prada products does not diminish; these products are known to have very good resale value.
If you own a Prada bag and plan to resell it, you can get a very good amount of money from it as you can sell it close to its original retail price. If it is a rare design, you can even sell it for more than what you paid for it.
While some people would say that the prices of Prada products are too high and not worth it since they are just fashion items, the resale value of Prada products speak for itself.
Prada is among the most well-known companies in the world, and its products, specifically its bags, are among the most coveted and sought-after items worldwide.
Are Other Brands Better Than Prada?
Regarding design, quality, and durability, all luxury fashion brands are on par with each other.
All designer brands, such as Prada, Gucci, Louis Vuitton, Dior, Hermes, and the like, produce high-quality fashion products that look good and last long.
However, some brands are doing better than others regarding sales.
In the ranking based on sales in 2021, Prada is in the 8th spot, with Bvlgari and Yves Saint Laurent below it. This means that seven other brands are doing better than Prada regarding sales.
In 2021, Prada had a total sales of $3,386M. Here are the luxury designer brands that outranked Prada:
Gucci:
Besting all the other luxury brands out there, Gucci closed 2021 with the most sales in the fashion category.
It ended the year with $15,599M in sales – slightly lower than its 2017 sales but still the top luxury fashion brand overall.
Gucci is an Italian luxury fashion house founded in 1921 and headquartered in Florence, Italy, by Guccio Gucci. Like Prada, this brand specializes in men’s and women’s bags, ready-to-wear clothing items, shoes, accessories, make-up, perfumes, and home decor items.
Louis Vuitton:
This brand ranked 2nd with a total sales of $14,858M in 2021, a drop from its $16,479M sales in 2020.
Louis Vuitton is also one of the biggest names in the luxury fashion industry. Also known as Louis Vuitton Malletier, this brand is a French luxury fashion house founded in 1854, and it specializes mainly in luxury bags and leather goods.
However, it also sells ready-to-wear clothing, shoes, watches, jewelry, and accessories for both men and women.
Chanel:
Next in rank is Chanel Chanel, which ended 2021 with $13,240M in sales. This was almost the same as their sales in the previous year.
Chanel is a French luxury fashion house founded by Coco Chanel in 1910. This brand specializes in women’s luxury fashion items such as ready-to-wear clothes, bags, fragrances, and accessories.
Hermès:
Another French luxury fashion brand, Hermès, ranked 4th in 2021 sales with a total of $11,656M, which is consistent with their 2020 sales.
This brand was founded in 1837 and is known as one of the biggest names in luxury fashion, mainly for its expensive designer bags.
Hermès sells leather goods like bags and shoes, ready-to-wear clothes, watches, jewelry, and accessories for men and women. The brand also has a line of make-up and perfume.
Dior:
Ranking 5th, Dior had a total sales of $7,826M in 2021. This was an increase from its $6,868M sales in 2020.
Dior is another French luxury fashion house. It was founded in 1954 in Paris by Christian Dior, and Bernard Arnault, a French businessman, now controls it.
Dior specializes in clothes, bags, shoes, and perfume for men and women. The brand also caters to children by offering clothing items for kids and babies.
Coach:
Next in ranking is Coach, with a total of $4,253M in sales in 2021. Although its sales plummeted in 2020, it made a good recovery the following year.
While its products are not as expensive as its European counterparts, Coach is another big name in the luxury fashion industry.
Coach is an American brand specializing in leather goods such as handbags and travel luggage. It also offers ready-to-wear clothing and accessories.
Burberry:
Just a spot above Prada, Burberry ended 2021 with a total sales of $3,401M, slightly declining from its 2020 sales.
Burberry has been a British luxury fashion brand for more than 150 years. Like the other brands, Burberry sells leather goods like bags and shoes and ready-to-wear clothing, accessories, and fragrances.
Does Gen-Z Culture Like Prada Products?
Prada has been around for more than a century. Even though it is an old and well-establish brand, Prada is constantly evolving by bringing trendier pieces into the market while retaining its timeless pieces.
A Gen-Z culture like Prada products. It is one of the brands that this generation patronizes.
While Prada products are generally expensive, several bags and fashion items are more affordable than the rest. And these are products that a lot of Gen-Z people can somehow afford. One example is the Prada Re-Edition Re-Nylon Mini Bag which has made its way to thousands of Gen-Z’s wardrobes.
Prada constantly reworks its classic pieces to fit into current styles as a popular brand. So it is no surprise that Gen-Z continues to support this designer brand.
Sources:
Prada Confirms Targets After Strong Start to 2022
Is Prada A Luxury Brand? How To Tell Whether A Brand Is Luxurious
Luxury And Premium 50 2021 Ranking
Prada Is Officially The Go-To Designer Label For Super Stylish Millennial And Gen-Z Shoppers