Prada turns its focus on South America, Middle East and the U.S.
“The second half of 2013 may be not be characterised by the economic recovery everybody was hoping for,” Prada Group CEO Patrizio Bertelli said in a conference with analysts this week. The Hong Kong-listed company said it would maintain its appeal by reducing discount sales and entering new markets.”We don’t want to glut the market with our products,” Bertelli added. A stricter discount policy boosted margins at Prada but hit sales volumes, which were up only 5 percent in the fourth quarter, if excluding contribution from new stores.
Prada, which sells over a third of its products in Asia, says it still has ample growth prospects in emerging marketswhere it has a smaller presence compared to rivals like LVMH and Salvatore Ferragamo. “Our major focus will be on the Gulf area, South America, and U.S. department stores,” Bertelli said.
adapted from Reuters