Cristine Li

Luxury fashion companies, such as Burberry and Tiffiany & Co., are both having a slowing growth in China. Both of them reported that their profit is less than what they expected. However, their rival, Prada, does not have this problem. According to Prada’s report,  “Sales in China rose 50 per cent to €334-million. Same store sales were up 19 per cent.”

Why there are big difference sales among these luxury fashion companies? I think one of the reasons is the their brand positioning. Not like Burberry, which is focus on the high-end fashional apparel market, Prada is “solidly in the luxury camp.” Prada’s products are more diversiffed than Burberry because they not only sells apparel, but luxury leather goods as well, which takes many Chinese luxury goods fans’ fancy. Maybe this different brand positioning make their profit growth different.

Also, even Prada can not ignore that the whole world’s economic is suffering a recession, expecially in Europe and North American. Even it does not stop the growth of the luxury goods market, it slows down it. The luxury fashion companies, however, count on too much on the sales in the holiday period for their good portion of annual profit.

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