Hong Kong (CNN) – Asia may not be the elixir to the world’s economic ills but it sure seems to be the pill that’s pushing one luxury goods maker to some great highs. On Tuesday, Italian fashion house Prada announced a stratospheric 74.2% rise in net income for the period from January to July 2011, compared to the same period in 2010. In hard cash numbers, that’s more than $244 million banked from the first half of this year versus $141 million from the first half of last year. Who are the people powering these profits? That would be Asia-based consumers. They are the ones buying up those high-end dresses, bags, shoes and other luxury accessories. Not the Italians, not the French, not the Americans. In fact this year, Asia (excluding Japan – that’s the way Prada categorizes it) registered 33% of the company’s net sales. And like last year, Asia was Prada’s largest market in the world. Breaking it down, Europe was the next most important region for Prada, contributing 22% to total net sales. Italy, Prada’s home turf, took a 19% slice of the sales pie. And it’s interesting to note that North America, with more than 450 million people, contributed 15% to Prada’s net sales while Japan, with just 127 million people, made up a competitive 10% of the total. Now, delving deeper into Asia’s drivers, the reason for Prada’s revenue rocket is simply this: Greater China is driving greater demand. This year, the Prada Group has 29 stores in mainland China, Hong Kong and Macau. By 2013, they’re boosting that total to 50 stores. By that year Prada expects about 50% of the Group’s planned 550 stores will be found right here across Asia. None of this should really be a surprise, though. If there was any clue as to where Prada’s strategic compass was pointing all we had to do was look to China: last January, Prada had it’s first-ever runway show outside Europe in Beijing. Looking ahead, let’s cue the music for the Italian fashion house. As Prada preps for a greater Asia expansion, we should well expect to see more models on catwalks across the region very soon. |
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Yes, its driven by China's utterly tasteless New Rich, who buy one of everything in every color. They are single-handedly reminding the world that money in no way conveys class, style, or refinement.
Jealous and bitter much Sean?
No, just tired of living in Hong Kong surrounded by tourists from the Big 6 who make the Beverly Hillbillies seem debonair by comparison. But yes, I am generally considered a bitter person.
You can blame it on the tasteless Nouveau Riche and their garish colors and their provincial ways. But the Far East also has the highest population both by number and by density. As the Asian buying power gradually converges with that of the developed world, its claim on the highest share of the luxury goods market should be as much a surprise as its share in the food market.
Have you ever seen the streets of Taiwan? Dirty, dog poop everywhere and peoples walking in the roads with cars zooming around because there are very few pedestrian ways. However many women here parade in/with Gucci, Burberry, Prada, high heels, Nine West, etc, nose up, they make quite a contrast.
In China (PRC) the streets are filled with human poop.
And that chick looks like a guy with makeup on.
Isn't China a communist country? I thought communism dislikes the rich. If China is a communist country, then why not keep the Zhongshan suit instead they are looking for Western suits and clothing, such as Prada. I guess they like the corrupt and controlling part of communism, but not the community and socialist part of it.
People.. people...people.. Your comments are just driving home the point to the world that the U.S. is nothing but a country of spoiled brats who have "lost their way" on the world stage. China is fastly becoming the new America. Sad to say. America GET OFF YOUR BUTTS AND TAKE RESPONSIBILITY FOR YOUR ACTIONS?? MAKE THE WORLD A BETTER PLACE AND QUIT BEING SO DAMN GREEDY AND STUCK UP!!!
Why applaud china for what hong kong was doing decades ago under british deed?
This is a very good sign that China is becoming affluent and has a rising middle and upper middle classes. True Prada is worn by the elite, but its not their dream or something they strive for, it are the growing chinese middle classes and upper middle classes to whom owning prada bags and shoes are important. And i am glad they are achieving their dreams, weather it be Prada or LV.. People´s comments are just VILE and BANAL. Why does it matter to Americans or British that Asian consumers are splashing a lot of cash
Greater China is driving greater demand.
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2100 years ago, Britain still has no civilization; the Roman Empire has imported the luxury goods from China – silk cloth.
700 years ago, Italy's Marco Polo has talked about this.
The National Palace Museum in ROC Taipei exhibits lots of luxury treasuries.
10 years later, Great China will demand more luxury goods certainly.
In 1949, the PRC killed their civilization. In 2011 they are trying to resurrect it. It's too late, it's gone.
asians are going to be richer and more powerful than the Westerners; get a grip sore losers. :)
I do not think so .
Hold on there... The Indians are coming!!!!
Why do they keep on talking about it? I also wondered why.
Just like you, I was also puzzled every time they try to conceal it when they include it
In the topic. All I know, people who are acquainted in this topic are amazingly rich.
Let’s find the answer at Google, just type “BlueGoldHunti” and click the first site.
China specifically the greater metropolitan area poses a threat – - – something to take with a grain of salt. What more if we open their market to the web. Not something to debate but their population alone and their footprint to various neopolis area in the globe... factors to consider... I somehow agree to this article...
It is just new to the Chinese, pretty soon their demand will die down (but obviously still be a large piece of the pie)...soon there will be a demand for mid-priced fashion in Asian markets too, as the middle class will opt for nice clothing but not spend dumb amounts of money on it...living out here I have seen some silly displays of money though...this happened in America too, just look at any Cash Money Records music video from the late 90s
oooo Sean big sour grape i see. Regardless of their taste in fashion, I think they have class when they spend it in CASH, not relying solely on credit card debts like Western chicks who try to follow latest Lindsay Lohan's looks every season.
China will never be the new America as some tard posted in this string. Nor will they ever learn the fundamentals of class – regardless of how much money flows into their wallets. The chinese people honestly have no sense of anything other than themselves. Proof of same is the 18 people that walked past a 2 year old that had just been hit by two cars and not bother to even make a phone call to emergency services. Proof is in the fact that they put poison in their own children's baby formula – knowingly. While there are exceptions I speak of the majority. And they continue to support a regime that has one of the worst human rights records of all times. Yes, the chinese may be able to buy a Prada bag but that will never put them in a respectable class. Ever.
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