Is the luxurious group on a path towards being dethroned?
Fashion has changed immensely over the years and while some designer brands have learned to transition with their changing customer, Prada admitted to WWD that they are struggling with finding the exact things that there evolved customer needs. Patrizio Bertelli, the brands chief executive officer stated that the year 2014 proved to be a more challenging one. Within the last 9 months profits for the company have dropped 27.6 percent.
So what exactly is it about today’s customer that has changed? Millard “Mickey” Drexler 3rd, Chairman and CEO for J.Crew recently stated in an interview with WWD, “apparel spending is down across our industry. It’s common knowledge that store traffic has been down for the past couple of years. Customers are shopping online more than ever and the promotional environment is like I have never seen before. Clearly, this is not business as usual. The world is changing and customer behavior and expectations are changing even faster.”
The future of Prada is currently unknown but if an iconic brand can be defeated what does this say about the future of the fashion industry?