When one thinks of the world of high fashion, a few well-known and highly recognizable names always come to mind: Gucci, Armani, Dolce & Gabbana, Prada. When most store-based companies, fashion houses included, start running into financial troubles they can go one of two ways. The first is to open new stores in new locations to attract new customers and spread your brand. While this is somewhat effective, it can be ruined if the products you’re offering are the same as they’ve always been. That brings us to the second option, coming up with new products and designs to bring in new customers while keeping your old ones happy.
Prada, one of the world’s most well-renowned fashion houses, have been facing tough economic times due to declining sales in existing stores all around the world. Faced with said declining sales, Prada has decided that the course of action they should follow is to open new high-end luxury stores in new cities that are full of the same bags and designs as all of their other ones. While it’s possible to follow the train of thought that Prada is following, it seems pretty clear to financial and business analysts around the country that they’re chasing the wrong strategy. Most people agree that the main reason Prada is losing sales isn’t because of a lack of exposure, it’s because they haven’t continued releasing new products or designs and people are getting bored and not purchasing anything new.
If people get bored of your products they will stop buying them. That’s one of the first lessons in business and it seems to be one that prada has forgotten. Even the designs that have been recently released seem to be very similar to previous designs that were huge hits for the brand. While it’s understandable that Prada is fearful of moving beyond the designs that once brought it so much fame and fortune, this sort of trepidation will kill the company if they don’t change. Opening new stores isn’t going to help bring in more revenue. Companies need to adapt and be constantly evolving so that they can stay in front of trends and constantly reaffirm to their customers why they should be as loved as they are. Prada has been resting on it’s laurels and it’s catching up to them. If they don’t change soon, they might be buried with their laurels too.
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