Julie Lee

Equity Bottom-Up

Luxury brand companies raised price by 2~4% again in January again after raising price by 10~15% in 2020.  Luxury fashion industry is one of a few industries which has shown strong pricing power even during the pandemic.  The core personal luxury goods market is expected to be contracted for the first time since 2009, falling by 23 percent to hit EUR217 billion, according to Bain&amp;Company.  But it has been showing strong recovery since 2H20. Even though the prolonged pandemic and lock-down can still weigh on the luxury industry, it will continue to show resilience given increasing disposable incomes of high-end consumers thanks to wealth effect and lack of spending on travels.  <a href="https://www.smartkarma.com/entities/prada-s-p-a" target="_blank" data-smartkarma-citation="entities:889:1" rel="noopener">Prada S.P.A. (1913 HK)</a>  is one of a few luxury brands which has been improving its brand equity by appointing the new co-creative director, Raf Simons, enhancing its online marketing and changing its distribution model.We will review details of Prada's strategies and its long term growth potentials in the below section.

Luxury brand companies raised price by 2~4% again in January again after raising price by 10~15% in 2020.  Luxury fashion industry is one of a few industries which has shown strong pricing power even during the pandemic.  The core personal luxury goods market is expected to be contracted for the first time since 2009, falling by 23 percent to hit EUR217 billion, according to Bain&amp;Company.  But it has been showing strong recovery since 2H20. Even though the prolonged pandemic and lock-down can still weigh on the luxury industry, it will continue to show resilience given increasing disposable incomes of high-end consumers thanks to wealth effect and lack of spending on travels.  Prada S.P.A. (1913 HK)  is one of a few luxury brands which has been improving its brand equity by appointing the new co-creative director, Raf Simons, enhancing its online marketing and changing its distribution model.We will review details of Prada's strategies and its long term growth potentials in the below section.  

PRADA (1913. HK): Improving Brand Equity to Fuel Its Long Term Growth