Retail

Prada Steps Up Digital Luxury Push

Could Snapchat be the key to helping struggling designer label Prada get out of a two-year rut? Perhaps.

The luxury goods maker announced plans earlier this week to introduce new lower-priced handbags and expand its online business to nearly double its current digital footprint, as it shutters brick-and-mortar locations. All of this is an attempt to reverse over two years of stagnant sales, according to a recent article by Internet Retailer.

In an investor presentation in New York this past Monday (April 11), Strategic Marketing Director Stefano Cantino said the brand will also narrow the spread on prices of new products between regions to about 10 percent.

“We are working deeply to really fill all the price ranges,” Cantino said of Prada’s plans (via IR) to introduce more bags costing between $1,368 and $1,597. “There is strong demand for newness.”

While those price points may seem far from “discounted,” they are a reflection of nose-diving demand in China for luxury goods and terrorist attacks that have rocked Europe and kept consumers out of malls and usually bustling shopping districts, notes the outlet.

In addition to addressing pricing, Prada is also delving into eCommerce more heartily than it has in the past. The brand plans to increase the number of categories it offers online, with a focus on shoes, and expanding its social media activities to include new emerging platforms, including Snapchat, Cantino told IR.

While the brand doesn’t plan to sell clothing over the Internet, it will be looking to drive online demand to the company’s 618 brick-and-mortar locations, he said. Prada hopes to double its online business over the next two years, one Snap at a time.

——————————

LIVE PYMNTS TV OCTOBER SERIES: POWERING THE DIGITAL SHIFT – B2B PAYMENTS 2021 

Banks, corporates and even regulators now recognize the imperative to modernize — not just digitize —the infrastructures and workflows that move money and data between businesses domestically and cross-border.

Together with Visa, PYMNTS invites you to a month-long series of livestreamed programs on these issues as they reshape B2B payments. Masters of modernization share insights and answer questions during a mix of intimate fireside chats and vibrant virtual roundtables.

Click to comment

TRENDING RIGHT NOW