Prada sees Chinese luxury market driving expansion
Print Edition
THE Chinese market for luxury fashion products will be the main driver of growth at Italian group Prada, the company said yesterday after reporting stable profits.
Prada played down talk of a slowing of the Chinese luxury sector, after reporting almost flat net profit for 2013 of 627.8 million euros (US$864 million).
That figure showed an increase of 0.3 percent from the outcome the previous year, and Prada said the results had been held down by the strength of the euro and an increased tax charge.
The company, which also reported a sales leap in the Middle East, has set a target of raising sales by 9 percent this year and intends to open 120 shops around the world in the next three years.
China has introduced tough laws to fight corruption, including restrictions on lavish entertainment and the giving of expensive gifts.
Some luxury product groups, which had experienced booming sales to a new middle class in China, have reported signs of a slowdown of their activities there, blaming the new laws and a slowing of the Chinese economy.
The makers of luxury watches in particular have seen their sales slow down.
But in remarks to the French business newspaper Les Echos yesterday, Prada Chief Executive Patrizio Bertelli, said that China would be the key market for the company and that forecasts of a sharp slowdown of the Chinese luxury market were mistaken.
“I do not really believe that the Chinese market has yet reached maturity,” Bertelli said.
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