PRADA Semi Annual Profit Plunging Group Directors In Tax Evasion Scandal

A single product structure, a sharp drop in group profits.

In September,

It can be said that the "worst half year report" has been released. By July 31, 2014, the group's revenue increased by only 1.3%, while net profit fell by 20.6% to 245 million euros.

As a good impetus for Prada (Prada), the Asia Pacific market has lost its former glory.

In the Asia Pacific region, Prada (Prada) has 164 direct outlets, but the net sales in the first half of this year dropped by 1.3%.

Because of a The Devil Wears Prada movie, Prada (Prada) became a household name in China overnight.

。

Relying on the classic single product "killer pack", Prada (Prada) has won the worship and popularity of countless consumers in China. However, the product structure is stuck with classic and basic Prada (Prada), and gradually began to fail to cater to the trend of consumers.

In order to cater for the Asian market to launch new products, Prada (Prada) designs are hard to attract the attention of consumers.

Prada (Prada) in Europe and the United States, the age of consumers is over 40 years old, so its design and sales are very traditional, strictly abide by the concept of high quality luxury goods, for China's young luxury consumer main groups, it lacks a sense of intimacy.

As the movie shows, Prada (Prada) has never put down its own posture, has been walking its own high cold line, has never considered the needs of the market.

Perhaps this is an indispensable condition for luxury brands, but it has also become one of the important reasons for Prada (Prada)'s performance declines.

Group directors are in a tax evasion scandal.

But there was not much comfort.

After the financial report has just been issued, the group has issued a notice that the chairman of the group Miuccia Prada (Mucha Prada) and her husband and chief executive officer Patrizio Bertelli (Partizio Bertelli) are accepting investigation by the Italy authorities for tax inspection.

Prada (Prada) group has repeatedly stressed that the incident involved only two directors of past tax, and the group and any Affiliated Companies has nothing to do with it.

However, local media speculated that two directors were suspected of pferring assets to overseas tax evasion, which had long been taken care of by Italy regulators. It was estimated that the amount of assets pferred amounted to 390 million pounds (about 3 billion 850 million yuan).

Quality problems emerge in endlessly, crisis public relations intelligence quotient is zero.

A splash, a wave again.

A media recently reported that Shenzhen consumers' Prada (Prada) Sunglasses purchased at duty-free shops in Seoul, South Korea, had broken down without screws on the day of Prada.

According to the media, at present, Prada (Prada) has said that the $292 sunglasses will be submitted to the after sales department for identification. It is impossible to confirm whether the glasses are of quality or not, and can not confirm whether the glasses are produced for the company.

As early as in 2013, a "if you buy a Prada (Prada) for a year, the zipper is not bad, Logo did not fall, did not open the line did not fade, the quality bar is good, basically can confirm that you bought a fake" micro-blog has been widely disseminated, which micro-blog has been called "advanced black" by many netizens, it is actually satirical Prada (Prada) quality problem.

However, unlike the Gucci, Gucci and Cartier (Cartire) brands that have also been caught up in the "quality gate", the Prada (Prada) salesmen even use the "colorless, tasteless high-grade glue and poor abrasion resistance" to respond to consumers.

"Consumers have a lot of misconceptions that Prada (Prada) is produced by Prada (Prada). In fact, Prada (Prada) shoes are made by nine Xing, glasses are Luxottica, and Prada (Prada) glasses have problems. Then, Chanel (Chanel) and Coach (GC) most of the world's luxury glasses may have problems, because Luxottica is the world's largest luxury spectacle producer."

Tang Xiaotang, a luxury goods analyst, commented that "for a long time, we thought that the quality of luxury goods is good. This is also a misunderstanding. Luxury premium is not high in terms of brand, history, culture and quality."

But regardless of the premium, quality problems will become a major concern. If you want to think about the quality of the media, do you choose the quality of Chanel (Chanel)?

In addition, the most serious problem of Prada (Prada) quality is that Prada (Prada) group has long been known as product Made in Italy (Italy).

After being exposed by a large number of media in Dongguan, it was forced to change the label to Made by Italy.

Unable to delegate family clan system management crisis

Like all family businesses in Italy, the Prada (Prada) group's management is quite old-fashioned. Many directors are as creative as Italians, but they only want to maintain their dominance in the group and never consider decentralization or introduce other shareholders.

From the beginning to the end, they believed that their talents were important assets of the group. They could not separate property from management. This was caused by Italy's traditional culture and values.

Prada (Prada) has publicly disclosed that 94.89% of the group's shares are held by Prada (Prada) family and Group CEO Patrizio Bertelli (Partizio Bertelli), while the Bank of Italy St Paul holds more than 5.11% of the shares.

After listing, the abuse of this family management is even more prominent.

After half a year of listing, Prada (Prada) lost 1/3 of its management staff. When China Economic Weekly consulted Prada's IPO prospectus, it found that 8000 employees and 14 senior managers were responsible for the daily operation and management of the company.

Its 2011 Annual report shows that 5 senior executives have left. They are chief operating officer of the group, chief executive officer of Asia Pacific region, chief executive officer and HR Director of Prada, USA and Germany.

Prada (Prada) former staff told the media that the current CEO Patrizio Bertelli (Partizio Bertelli) arbitrary management practices, is the main reason for the high turnover rate.