Despite a crackdown on luxury goods in China, Prada — which also includes sub-brands like Church, Miu Miu and Carl Shoe, to name but a few — said it is confident that growth in its biggest market will continue, driven mainly by new retail offerings.
Prada yesterday reported a 11.7% increase in overall net profit with Asia Pacific making up 36.8% of its net revenue, compared to 35% last year.
While sales in Greater China, including Hong Kong, slowed to 20% in the first half of 2013 from 35% last year. Greater China, including Hong Kong and Macau, counted for 23% of Prada’s overall business.
Recent retail expansion in Greater China includes two Prada store openings in Shanghai and Tianjin as well as a Church’s store in Hong Kong this month; four mono-brand stores for its Prada and Miu Miu labels in Shanghai and Tianjin last month.
Its expansion echoes that of other luxury brands like Burberry, a brand which is also confident that sales in China will continue, albeit not as a rapid as past years.
“It’s not just Burberry that was affected [by the crackdown], the entire industry was,” Angela Ahrendts, CEO of Burberry told CNBC.