Building for future growth, Prada announced that it would add 80 stores globally this fiscal year, costing US$478.8 million.
China continues to be a major expansion market with 10 to 15 new stores planned, mainly Prada and Miu Miu, bringing the total stores to 60.
New stores will be in second- and third-tier cities such as Urumqi in Xinjiang, “where there was a growing population of big spenders and an appetite for luxury handbags,” reports The South China Morning Post.
While analysts remain cautious about China’s economy which is expected to grow by 7 percent this year, down from 9 percent last year, the company is optimistic. Carlo Mazzi, deputy chairman of Prada thinks this is still a “great” growth rate. “We continue to think China is an economy which can expand because of its large population,” said Mazzi.
Prada has the Chinese consumers in mind even for its non-China expansion. “Chinese people are traveling more and more and increasing very much their [purchases] abroad, [while at the same time spending] a little less on luxury goods in China,” Mazzi said. “But their [purchases] are continuing to grow very fast overseas.”
For the nine months ending October 2013, Prada’s China sales grew by 14.8 percent to US$810.6 million, nearly a quarter of sales.
“If we did not open stores many years ago in China, today we would not have got the results,” Mazzi said.
image credit: prada