Prada, the renowned luxury fashion brand, has experienced a substantial increase in sales in China during the month of May, with a double-digit growth rate in comparable sales. However, the company acknowledges that it still has a long road ahead before fully recovering from the devastating impact of the coronavirus pandemic.

In an interview with Bloomberg TV, Co-CEO Patrizio Bertelli disclosed that sales in China had surged more than 10% this month. While this news is certainly positive, it is not enough to declare a complete recovery for Prada in the country. Bertelli also highlighted the ongoing challenges faced in Europe.

A key factor contributing to the difficulties in the European luxury sector is the heavy reliance on tourist sales. Even with the easing of lockdown measures, the tourism industry in Europe is expected to remain subdued, which will have a significant impact on the sales of luxury brands. Bertelli does not anticipate a significant improvement in this situation until a vaccine for the virus is developed.

Considering the uncertainty surrounding the availability of a vaccine, Bertelli’s assessment may appear pessimistic. However, he maintains an optimistic outlook for the future and expressed his belief that global demand will gradually recover. Prada has no intention of resorting to extreme measures, such as going private again. Instead, the company is placing its focus on brand development, expanding its sales network, and capitalizing on digital technology.

The fashion industry has been severely affected by the coronavirus pandemic, and luxury brands have not been spared from its repercussions. Nonetheless, Prada’s impressive sales performance in China indicates a potential path to recovery in one of its vital markets. With a deliberate emphasis on brand development and digital innovation, the company is positioning itself for long-term success in a post-pandemic world.

Useful Links:
Forbes – Stop Crying For The Luxury Industry
Bain & Company – China Luxury Market Study 2020