Respond to the post:Luxury fashion companies are having a slowing growth in China
In the original blog, Cristine indicates that while some luxury fashion companies ,such as Burberry and Tiffiany&Co.,are both having a slowing growth in china, sales of Prada still increasing.
By comparing Burberry and Prada,the author suggested that the different brand positioning made their profit growth, Prada is more diversify than Burberry.
I have some different opinions about this problem. I think the reason of this situation is mainly due to the regional price difference. To be more specific , the selling price of Burberry’s products have large difference in china and in some other countries ,such as the U.K. and the U.S. and the same as Tiffiany. The products were sold much cheaper in America than in China because China has high import tax, especially for luxury goods. Therefore,those luxury fans in China are more willing to buy stuff through Internet (i.e.,buy goods from America or other countries.) .However , the situation is a kind of different about Prada. First of all, there are many categories in Prada’s product and the big difference in price ,which means Prada may have more target consumers. Then , the regional difference in price is not that large for Prada. In this case, China is a large potential market for Prada.
original blog link: https://blogs.ubc.ca/cristineli/2012/09/24/luxury-fashion-companies-are-having-a-slowing-growth-in-china/