During the first half of 2016, the volume of sales of the Italian firm Prada, dropped considerably. In fact, the fashion brand's turnover fell by 14.8% in the first months of this year, below 1.55 million euros, while its net profit fell 24% to 141.9 million euros. The firm now announces that it will focus its efforts in e-commerce to improve your windows.
It is worth mentioning that every region in which the brand has a presence experienced setbacks, with the exception of the United Kingdom. A complicated market like Hong Kong resulted in a 22% drop in turnover. The terrorist attacks also had a negative impact on European tourism with a 20% drop in turnover.
The company has to reorient if it wants to revive sales, lowering the prices of its handbags and focusing its attention on low cost bags, with prices below € 2.000.
A greater focus on Ecommerce
Not only Prada will spend less on advertising and advertisements, but also intends to increase its focus on online sales. Although it is true that the firm already has an online store, in reality it has not paid much attention to it and therefore a new strategy aims to change the perspective.
The goal is to double your online sales every year for the next three years, something that should also help increase online sales of shares of 2% that currently contributes to the total turnover of the firm.
Finally, also mention that the brand will restructure its network of stores in less desirable places, while others will be remodeled or updated. All these changes in the company should be enough to see growth next year.