Prada tries to become again relevant for the China consumer - Ben Cavender

Getting traction from Chinese consumers is increasingly becoming harder for brands. Prada has been investing in its relationship, but has a hard time to become relevant again for their key consumers, says retail analyst Ben Cavender to CNN.

CNN:

China is one of the world's biggest markets for luxury goods, and Chinese shoppers at home and abroad make up almost a third of purchases globally, according to McKinsey.

As the value of China's currency has declined, "consumers just haven't been buying as much overseas this year," said Ben Cavender, an analyst at China Market Research.

The lackluster results come at a turbulent time for Prada. The Italian fashion house's stock price has fallen more than 36% over the last year...

Analysts say that Prada has fallen behind its competitors. They say it hasn't invested enough to create a unique experience for customers and hasn't rolled out new products fast enough to create buzz. 

The company is working to put this right, but it has some catching up to do to compete with brands like Gucci, which is owned by French luxury group Kering (KER).

"Both Kering and LVMH have been able to invest very heavily into store renovations, visual merchandising, and digital strategy in China which has made it easier for them to generate mainland China sales," said Cavender. "Prada was behind the curve."... 

Prada has made some inroads over the last year. Cavender notes that the company "has been more aggressive with product launches," and it recently relaunched a website for one of its most popular brands, Miu Miu, in Europe.

More at CNN.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on China's consumers? Do check out this list.  

Prada has to reinvent itself - Shaun Rein

+Shaun Rein 

Prada is still drawing large queues at outlets in Asia and Europe, those queues are one third smaller than they used to be. Branding expert and author Shaun Rein sees Prada has more problems with Chinese customers than the ongoing anti-corruption campaign, he tells in CNBC.

CNBC:

Shaun Rein, managing director at China Market Research Group, believes Prada's challenges in the mainland run deeper than Beijing's anti-extravagance campaign. 

On one hand it doesn't have the brand loyalty among wealthy mainlanders, who favor brands like Chanel or Hermes. And on the other hand, it's out of reach for the middle class. 

"It's not going to be easy for Prada," Rein Said. "They are going to have to look at their product mix, target younger, female customers who are typically more optimistic and spend more, and push their Mui Mui brand rather than Prada."

More in CNBC.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers´request form.

Are you looking for more branding experts at the China Speakers Bureau? Do check our latest list.  

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Buying Prada suits, not shares - Shaun Rein

Shaun Rein

Prada is not doing as well as Gucci and Louis Vuitton in branding themselves in China, and Shaun Rein tells at CNBC why he would buy their suits, but not their shares. China might be skipping import taxes on luxury goods for stimulate sales, so having a decent retail operation in China is crucial.

Also: Shaun Rein expects China to become a world financial center faster than most think, with the Renminbi as a reserve currency.

More at CNBC

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch.

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