background preloader

3.3.4 Prada seeks younger customers in bid for growth

3.3.4 Prada seeks younger customers in bid for growth
Image copyright AP Italian luxury fashion group Prada has predicted a return to growth as it seeks to connect with younger customers through online sales and flexible pricing. First half profits fell 25% to €330m (£282m) due partly to falling demand in China and Italy. But Prada said it saw 2016 as "a turning point." It has been reviewing prices, product variety and online marketing to appeal to more customers. Revenue fell 15% to €1.55bn compared to this time last year and in April Prada announced its lowest profits in five years. It was previously criticised for opening too many new stores and failing to invest enough online. Prada said it was on track with plans to double its e-commerce sales over the next two years by increasing the number of products it offered online, particularly shoes. It will also expand its social media activities so it can raise its profile among "the 'always connected' millennials," referring to the 20s -30s age group. Image copyright Getty Images

Related:  Articles and WorksheetsLuxury Brandsmeenaali

3.3 LEGO Surprisingly Wants You to Stop Buying Its Toys. Here's Why. In 2003, LEGO nearly went bankrupt. But a decade later, business is going almost too well, forcing the company to do something rather unusual: discourage customers from buying its products. That’s right — the 67-year-old Danish toymaker (which has seen revenue increase by an average of 15% a year for the past 12 years) aggressively scaled back its advertising efforts last year because demand was simply too high. Time to prep for the future and catch a much-needed breather Or as CFO John Goodwin puts it, “We are of course excited about [LEGO’s success], but the high demand also puts a strain on our factories… We feel we need to invest, to build some breathing space.”

Prada Sales Slide on Weak Demand MILAN, Italy — Prada SpA reported the first decline in opening-half sales since its 2011 listing as weak demand in China and terrorist attacks in Europe continued to weigh on the Italian luxury-goods maker. Revenue fell 15 percent to €1.55 billion ($1.8 billion), the Hong Kong-listed company said in a statement Friday, missing the €1.65 billion average analyst estimate compiled by Bloomberg. Earnings also declined, though by slightly less than analysts predicted. As the wider luxury industry struggles for growth, Prada has been hit harder than most. That is partly because its handbags are too expensive and it is been too slow to invest online, according to Sanford C.

Coach, Michael Kors Discounts To Disappear As Luxury Brands Strive To Become More Exclusive Again Coach and Michael Kors luxury brands are both doing a bit of revamping in an attempt to increase the exclusivity of their brands. What that means for consumers is that those looking for discounts on the designer purses and other items may find themselves at a loss. Brands like Coach and Michael Kors were once pretty exclusive, and not just anyone could own the luxury handbags and other products marketed initially for the elite.

Gucci slammed for ‘irresponsible’ ad featuring ‘unhealthily thin’ model The ad, which appeared on The Times’ website in December last year, included several photos of models posing. The ad was investigated after one complainant argued the models were unhealthily thin, making the ad irresponsible. Gucci said the ads were part of a video that portrayed a dance party and was aimed at an older, sophisticated audience. The Times and the luxury fashion retailer said it was, to some extent, a subjective issue as to whether a model looked unhealthily thin. The brand believed both models had slim builds, but were not depicted in a way that could be interpreted as unhealthily thin.

Retail Trends 2016 The five disruptive forces changing the future of retail Technology has changed the way retailers and brands operate over the last decade, and the pace of change shows no sign of slowing. These are the five disruptors that we think will be next on the agenda for the industry: 3.3.4 - Have Tablets Entered the Decline Phase of their Product Life Cycle? Worldwide tablet shipments declined by 12.3% in the second quarter of 2016, which was the seventh consecutive quarter in which the market declined in size on a year-over-year basis. According to IDC’s preliminary estimates, a total of 38.7 million devices were shipped between April and June 2016, down from 44.1 million in 2015. Although most tablets shipped in the past quarter were Android-based, Apple continues to be the market leader with the gap between Apple and second-placed Samsung getting wider as Samsung suffered a fall in shipments by around 25%.

Fendi SS17 Our verdict: Refreshingly there was little complexity to Fendi’s narrative this season, and while that may sound like code for taking the easy route there is something to be said for clothes that are relaxed, wearable and downright fun. While the often press all coo over conceptual pieces and multi-layered meaning in collections sometimes it’s worth remembering that at the end of the day, clothes are there to be worn. And in fact there was more than one way to wear Fendi SS17. Many pieces in Silvia Venturini Fendi’s collection were reversible – from bucket hats (they’re back!), to quilted coats and silk jackets – all paired with oversized leather totes that you can pack your life in and hit the road. Shapes were loose and relaxed, baggy slacks in neutral tones worn with buttoned up polos or lightweight striped knits.

Luxury brands tap into social media to reach Chinese customer Luxury brands have hit some bumps on the road to expanding their sales in China, so many are coming up with new ways to reach their customers, especially younger ones, by opening up more social media accounts. CCTV’s Hu Xiaocen reports. Luxury brands tap into social media to reach Chinese customer Luxury brands tap into social media to reach Chinese customer Luxury brands have hit some bumps on the road to expanding their sales in China, so many are coming up with new ways to reach their customers, especially younger ones, by opening up more social media accounts. CCTV’s Hu Xiaocen reports.

Burberry becomes first luxury brand to personalise on Pinterest Burberry has become the first luxury brand to offer customers a personalised experience on Pinterest, letting them create customised make-up boards to promote its new ‘Cat Lashes Mascara’ product. The personalisation works by asking visitors three questions. Their answers, along with their initials will be combined to create the personal Pinterest board. The partnership allows Burberry to benefit from Pinterest’s features and data to cater its posts to individuals though personalised and monogrammed content. Pinterest is currently the largest beauty platform in the world, with 38.5 million unique viewers of its hair and beauty category. Content will include makeup preferences, inspirational images, ‘how to get the look’ guides, product tips and information.

5 Forces Impacting Retail Sustainability Evolving technology, changing supply chain models and consumers empowered with information on retailers’ business practices are each impacting retail and changing long-established standards in the industry. As more favorable economic conditions slowly return, retailers envision a prosperous and profitable future but must manage growth while accounting for these and other disruptive forces to maintain margins and improve operations. The five forces impacting retail each carry unique pressures and require careful consideration from the C-suite before a sustainability strategy can be mapped out.

3.3.4 Coca-Cola and the decline stage of the PLC Publicly available information about individual brands that the Coca-Cola company sell is difficult to come by but information about the soft drink industry as a whole can be used to make some assumptions about Coca-Cola sales. 1) Falling soda sales in the USA. This story reveals how overall sales of carbonated soft drinks fell for the 11th consecutive year in the USA, with 2015’s decline of 1.2% a bigger fall than 2014’s 0.9%. The article states that the decline in demand for diet soda drinks is even more significant. Of course, just because sales are declining in one market does not mean that overall sales are falling.