There has been plenty of buzz about China’s dimming prospects. While there may be economic weakness, some do not expect China’s luxury market to be impacted much.
Italian fashion brand Prada, for one, sees strong growth in China.
The company expects sales to triple in the next two to three years, according to deputy chairman Carlo Mazzi.
“About 40% of our business is from Asia, and it may rise to 50% next year,” Mazzi said. “I don’t think China’s economy will be seriously hit by the global economic crisis.”
Prada’s confidence in China remains high because of strong domestic demand and the country’s ability to increase investment in areas such as infrastructure, which bodes well for growth.
For the first six months of 2011, Prada’s Greater China sales (includes Hong Kong and Macau) totaled €223 million (RM961.5 million), up 38% from a year ago and account for about 20% of total sales.
photo credit: prada