Following hugely disappointing results posted last week, Prada promised some ideas about how it would turn itself around at a conference call on Monday. The key outcome? It has finally got the digital message, it seems.
And it really needed to. One of the most forward-looking brands on the style front, Prada has long been in the corner of the classroom with a dunce’s cap on as far as digital is concerned (if you’re too young to get that analogy, look it up here).
Chairman Carlo Mazzi started by saying he isn’t seeing any change in consumer behaviour, adding fairly cryptically “especially the new generations”. It can only be assumed this means the brand just isn’t getting through to younger consumers who see digital as key.
Hopefully that won’t be the case for long as head of strategic marketing, Stefano Cantino, said Prada now has a target of doubling e-tail revenues in two years. On the assumption that Prada group e-revenues aren’t currently that big, that may not be too ambitious, but for a brand that has lagged on the digital front, it’s a sign that it has really woken up.
Interestingly, it’s not going to feel about in the dark as it aims to boost said e-tail, rather work with experienced partners like Yoox Net-A-Porter. So get ready for more of its product being available in multi brand e-stores. It will also boost its social media efforts and will be on Snapchat by October. While Burberry isn’t likely to be quaking in its very expensive boots just yet, it’s all heading in the right direction, albeit slowly.
The company’s growth should be achieved by adding categories online, such as shoes. But it seems we won’t be seeing clothing for sale online. It really is all about accessories for Prada and in this area it’s also promised lower prices and value for money.
Where does this digital focus and pricing strategy leave physical stores? Directly-operated stores were Prada’s holy grail during the last decade. It opened them at breakneck speed and at very high cost on the world’s key shopping streets. It won’t stop opening stores, but it’ll close some too and aims to boost productivity of each one at the same time. That includes boosting customer service. “Since we have fewer customers coming to our stores we have to treat them very well,” Cantino said.
This post first appeared on Trendwalk.net, a style-meets-business blog by journalist, trends specialist and business analyst, Sandra Halliday