Italy Luxury Prada Group Sales Zero Growth In 2015

As of January 31st this year, Prada group's wholesale business revenue fell by 16.6% to 444 million euros, resulting in a slowdown in China's regional economic slowdown and a 4% decline in the Asia Pacific region (excluding Japan).

News from Milan benefited from the increase in currency exchange rates and store sales.

The 2015 earnings report announced on Wednesday showed that the group's sales were flat compared with 2014 sales.

In the first 12 months ending January 31st, the total sales volume of the group was 3 billion 540 million euros, which was basically unchanged compared with the total sales volume of 3 billion 550 million yuan in 2014.

Group retail sales rose 2.5% to 3 billion 50 million euros.

As of January 31st this year, the group has 618 direct outlets, and the wholesale business revenue has declined by 16.6% to 444 million euros as the group focuses on sales of its own stores.

Sales in Europe and Japan have increased, while the weakness in the Chinese market has weakened sales in the Asia Pacific region.

Prada group's brand Prada benefited from exchange rate fluctuations, sales rose 1% to 2 billion 480 million euros; Miu Miu and Church 's sales increased by 10% and 14% respectively.

CEO Patrizio Bertelli of the group said that the two factors led to huge fluctuations in commodity prices and negative impacts on the consumption tourism industry due to the fluctuating exchange rate of currency, especially the turbulence of the economic environment in 2015 and the deterioration of geopolitical situation in many regions.

But the global retail network system, which has benefited from the group investment, enables the group to establish trade relations with the required customers in the harsh business environment.

Patrizio Bertelli revealed: "

In the coming months, we will focus on developing new business models and marketing activities to maintain organic growth and create an omnibearing digital project to enhance communication with customers. "

Last December, Patrizio Bertelli talked with analysts about the company's focus on the development of technology and social media, from Instagram to Twitter.

From January 15th this year, Wi-Fi services will be available in shops of Prada and Miu Miu.

Donatello Galli, chief financial officer of the group, said that the interaction between companies and customers increased in order to find more customer needs. Although the service industry is facing more and more challenges, it is also an opportunity.

Prada group revealed that, thanks to strong sales of eyewear and Miu Miu perfume, licensed merchandise sales were good, franchising sales rose 14% to 44 million euros.

By region, thanks to the increase in the number of tourists, sales in Europe are rising. The company emphasizes that Italy's market sales will get better and better, and maintain strong momentum in the fourth quarter.

Sales in Japan increased by 11% and the exchange rate was constant. Sales rose by 4%. The Japanese region has maintained an upward trend since 2010.

Sales in the Middle East soared in the last quarter, resulting in an annual sales growth of 11%.

China's regional economic slowdown has led to a decline in sales. Sales in the Asia Pacific region (excluding Japan) have dropped by 4%, and sales have declined by 16% on the basis of a constant exchange rate.

Thanks to the impact of exchange rate,

A 5% rise, but a strong dollar led to a 9% drop in real earnings.