Apparel Brand Research Project Prada

Appargonl Brand Research Project PradaBRAND OVERVIEWPrada was founded in 1913 by Mario Prada, Miuccia Pradas grandfather, in Milan. Located in the prestigious G wholeeria Vittorio Emanuele II, Prada was an exclusive, swish enclose selling luggage, accessories and luxury goods, in fine materials and of in advance(p) workmanship.The Milan store quickly became a firm favourite with the Italian aristocracy and the intimately sophisticated members of the European elite. In 1919 Prada received the warrant of Official supplier of the Italian Royal Ho implementhold, and since then has been able to display the royal savoy pelage of arms and figure-of-eight k nons alongside the come with logo.Miuccia Prada and Patrizio Bertelli started working together in the late 70s, laying the foundations of the international expansion that was to come. Patrizio Bertelli broke peeled foundation in the luxury goods sector, introducing a new business model in which he kept direct, internal control over all processes, applying uncompromised t whizz criteria across the entire production cycle. Miuccia Pradas creative talent and avant-garde nuzzle attracted the attention of the global counterfeit industry, eyepatch her ability to look at the world from an unconventional vantage point allowed her not only to anticipate, b atomic number 18ly quite often, to set new trends.The classic Prada suitcase was make of impenetrable walrus skin but as plane travel do heavy suitcases impractical, the connection started to make lighter bags and spicy quality items do of crystals, tortoise shell and wood. They alike interchange garments of waterproof fabrics to the U.S. However the comp either(prenominal) had g unmatched(p) into dec cast in the 1970s.1950 Miuccia Prada was born. By her mid-20s she had a doctorate in political science and in her 30s, she was a communist. In 1970 she started making backpack bags extinct of waterproof fabric called Pocone.1979 She took over the Pra da family business. Since gross revenue were down, she expanded into luxury labour bags and backpacks in black with unconditional classic lines, made from nylon.1985 She launched a line of footwear for women and her origin off pret-a-porter clothing line, using high quality fabrics. Her peel lines gave her fame, and she came to be known for under-stated elegant garments.1993 She received an International award from the Council of way Designers of America.1995 She won Designer of the Year award.1998 Prada opened their first menswear shop in Los Angeles, USA. They as well as opened new Prada stores in Manhattan and Las Vegas, as wellhead as Miu Mius first North American boutique, in Los Angeles.Prada is now a oecumenical empire, with stores in practically every boorish in the western world. It is a million-dollar concern, with every celebrity wearing Prada clothes.2. NATURE OF BRAND AND ITS TARGET grocery storeThe Prada speck targets an international customer base that is modern, sophisticated, attuned to stylistic innovations, and expects craftsmanship of the highest quality. The brands iconic trade attach, which ar readily recognized around the world, incorporate the Savoy coat of arms and Savoy figure-of-eight knot, reflecting its heritage as an official supplier to the causation Royal family of Italy. Introduced in the 1980s, Pradas famous black nylon bag with the signature trigon logo has been an enduring classic, with two the nylon bag and the logo becoming icons in the brands history.The Prada brand represents the best of Italian culture and tradition, sophisticated style and stern quality, and as one of the most innovational fashion brands argon confident of re-defining the norm and setting new trends. Prada also captured the attention of literary and cinematic audiences when the novel The Devil Wears Prada was first published in 2003, and then was made into a movie in 2006. The Prada brands characteristic passkeyity is built o n its whimsical(p) approach to style, craftsmanship and constant innovation in materials and figs, as we unceasingly exert creativity in the development of fashionable designs, sophisticated fabrics and advanced(a) production techniques.At the heart of the evolution of fashion, we believe Prada has been a sophisticated interpreter of its times and a forerunner of style and trends. Prada is a reward brand. It is very high quality which unfortunatly comes with a substantially high toll tag. 2.1. PRADA GEOGRAPHICAL SEGMENTATIONUnder geographic segmentation, product or assist is divided accordingly to geographic units, such as nations, states, regions, countries, cities or neighbourhoods. right away operated stores, including the epicentres, are designed, constructed and managed in accordance with precise guidelines location chosen are among the most prestigious.2.2. PRADA PSYCHOGRAPHIC SEGMENTATIONPsychographic segmentation divides the market into groups based on societal clas s, lifestyle and personality characteristics.The PRADA brand targets an international customer base that is modern, sophisticated, attuned to stylist innovations, and expects craftsmanship of the highest quality.3. RETAIL DISTRIBITION CHANNELSPrada, Miu Miu, Churchs and Car Shoe products are interchange through two distribution persuadesThe retail channel, represented by the single-brand stores (including the trio Epicentres) directly operated by the comp both, which currently account for approximately 78% of sales the individual channel of multi-brand stores, discussion section stores and franchises (so called wholesale).This distribution solution enables the root word to take away a presence in the most exclusive points-of-sale which are either single-brand or multi-brand worldwide. The Groups commercial strategy is based on a discriminating analysis of the potential of individual markets, an innovative approach and sloshed control of display and presentation criteria, a nd a continuous search for original sales thoughts. Prada has always pioneered new solutions combining design, architecture, and technology to create environments that not only encourage sales but also communicate its unique strong brand identity and the cultural influences and values of the Prada world in a consistent and homogeneous way.Towards the end of the nineties, Prada decided to redefine the concept of shop and enlisted the help of pioneering architects of international renown, Rem Koolhaas and Herzog de Meuron, recent winners of the prestigious Pritzker Prize. The turn up of this partnership was the creation of the Prada Epicenters areas and buildings which have rapidly acquired landmark status both locally and internationally. Pradas Epicentres have not only trans inninged the concept of shopping but have also fused it with cutting edge technology and a multitude of cultural stimuli, offering customers a whole lean of unique experiences and exclusive services. There are currently three Prada Epicentres one in SoHo, New York (designed by Rem Koolhaas in 2001) anformer(a) in Aoyama, Tokyo (Herzog de Meuron, 2003) and the third in Beverly Hills, Los Angeles (also by Rem Koolhaas, 2004).Directly operated stores, including the three Epicentres, are designed, constructed and managed in accordance with precise guidelines location chosen are among the most prestigious and the personnel is selected and trained to house customers with an exclusive treatment.This vitrine of store contributes to maintaining a very close relationship with customers, providing immediate selective information about the market trend. Moreover, direct-sale stores also provide very valuable strengthener for the brand, acting as true ambassadors communicating the Prada image consistently and uniformly all over the world.Prada manages the independent shops and department stores channel based on selective distribution and a well-defined strategy of control aimed at maintaining outstanding quality and high volumes, ensuring consistency in merchandising and observe sales performance. Franchise shops are located in specific markets where this form of retail is imposed by local legislation or custom, and think of partnerships with local entrepreneurs with an excellent knowledge of the relevant market.The wholesale channel, besides ensuring the brand benefits by a series of shop windows in positionly momentous positions in key markets, enables a direct and immediate comparison to be made with the competitor brands. Therefore, the sales trend through the independent channel represents a very useful indicator of the consumer trends and brand strength.3.1. PRADAS FALL charge IS ALL ABOUT MODERN FEMININITY AND NEW FACESThe way fashion houses describe their armys and ad campaigns can often sound like light non wiz. But the person responsible for announcing Pradas fall 2015 campaign did a beautiful good job of summing it up as an elegant, ironic ode to meta -modern femininity.Like the collection itself, the campaign shot by Steven Meisel is very pretty, but odd. Theres a sense of isolation in the arrangement of the models, who do not look at or touch each other but stare at an unspecified object off-camera. Theres also a feeling of youth and newness provided by a cast of somewhat new faces, including Avery Blanchard, Estella Boersma, Inga Dezhina, Lineisy Montero, Ine Neefs, Greta Varlese and Maartje Verhoef, all of whom have walked the rails for Prada and/or Miu Miu this past seasons.Prada has a knack for casting promising models fairly earlier in their careers, so while some of them already have a campaign or two under their belts, expect to face these girls even much in the coming seasons. Montero, whom everyone started talking about when she walked in the brands fall 2015 head, has already landed a Teen Vogue cover.4. cerebral PROPERTY RIGHTSWebsite as a whole and all material on this Website, as well the Prada trademark, ar e owned and registered by Prada S.A., a compevery with registered office at 23 rue Aldigren, L-1118 Luxembourg.Prada website is operated by Prada S.p.A., an Italian conjunction having its principal place of business at Via Antonio Fogazzaro 28, 20135 Milan, Italy, operating holding company of the Prada Group.Prada S.A. and Prada S.p.A. are collectively referred to as PRADA Prada S.p.A. and its subsidiaries will be collectively referred to as Prada Group hereinafter.All trademarks and logos, whether registered or not, displayed on the Website, including but not particular(a) to the Prada trademark, as well as all the other distinctive marks connected with PRADA and reproduced on the Website, are and will remain the exclusive belongings of Prada S.A.. These trademarks whitethorn not be used in connection with any product or service that does not originate with PRADA, in any manner that is likely to cause confusion among users, or in any manner that disparages or discredits the Pra da name and trademark and the products bearing the Prada trademark. Prada website and all the bailiwick included therein, including, but not limited to, all texts, information, data, images, icons, photographs, illustrations, multimedia satiate (graphic, audio and video), charts, indices, descriptions, data, software, HTML codes and screens contained therein and the like (hereinafter collectively Content), is owned by or licensed to PRADA and is subject to protection by international reason property laws, including, but not limited to, rights in the nature of distinct rights, procures, trade secrets, trade names, trademarks, service marks, moral rights, know-how and any other mistakable rights recognized under laws or international conventions in any country or jurisdiction in the world. All materials contained in this Website, except for the e-store section, are displayed for informational or promotional purpose only. Subject to these Terms and Conditions of Use, and except a s otherwise indicated on the Website, you may access, download, copy, store, manipulate, reformat, print or display any Content to which you have obtained authorized access solely for your personal use and not for business purposes. You may not otherwise download, copy, store, manipulate, reformat, print, display, publish, transmit, distribute, create a derivative work from, resell or make any other use of, the Website, or any Content contained therein.No right, title and/or interest deriving from or pertaining to the Content, material or software of the Website may be deemed assigned to or acquired by you as a depart of your use of the Website. You agree to accept and abide by all copyright or trademark notices and other notices contained on the Website and in the Content. All rights are reserved in all countries worldwide.People aware that the Prada products are sold exclusively at Prada monobrand stores, at prestigious multi-brand stores and points of sale belonging to Prada S.p .A.s selective retail network, outlets belonging to the Prada Group and in the e-store section of the Website which is only open in certain countries, as better specified on the Website. every purchase outside of these points of sale is entirely at the purchasers risk, in particular with regard to the authenticity of any such purchased items.http//www.prada.com/content/dam/ immaterial/terms-conditions/EU-EN.pdf5.OWNERSHIP UPON BRANDMiuccia Prada is the co-CEO and lead designer of the handbag and fashion empire Prada, in which she has a 28% stake. In 1977 Miuccia and her siblings Albert and Marina inherited the family fashion business, founded in 1913 by their grandfather. Miuccia met Patrizio Bertelli, who ran a luxury leather company, at a Milan trade show in 1977 and signed him on as a contractor. A course of study later, they were married and Bertelli joined the company, taking care of the business side of things while pushing Prada into new directions. He serves as co-CEO with Miuccia, and his stake in the company also makes him a billionaire. In 1986 Prada opened its first store in New York and expanded beyond high-end suitcases, handbags, and steamer trunks. A few years later, the company unveiled a ready-to-wear womens collection and a randomness brand, Miu Miu. Miuccia, who has a Ph.D in political science from the University of Milan, took the company public with Bertelli in Hong Kong in 2011.5.1. BOARD OF DIRECTORSOur Board consists on nine Directors, of whom four are executive director Directors, two are non-executive Directors and three are independent non-executive Directors.The common stockholders meeting of 26 May 2015 resolved to appoint the Board of Directors for a term of three pecuniary years. The boards mandate will therefore fade with the shareholders meeting to be convened for the approval of the financial statements for the year ending 31 January 2018.The below shows the current members of the Boards of DirectorsMazzi, Carlo -chai rperson and executive directorPrada Bianchi, Miuccia -chief executive officer and executive directorBertelli, Patrizio chief executive officer and executive directorCozzani, Alessandra -chief financial officer and executive directorCereda, Maurizio -non-executive directorSimontacchi, Stefano -non-executive directorMattei, Gian Franco Oliviero -independent non-executive directorForestieri, Giancarlo independent non-executive directorLiu, Sing Cheong -independent non-executive director5.2. SHAREHOLDERS STRUCTUREAs of 31 January 2015, the shareholder structure of Prada S.p.A. is composed as follows6. LICENCES AND JOINT VENTURESEyewearIn 2000 the PRADA Group positive its first Prada and Miu Miu branded sunglasses, and in 2003 it signed a licence transcription with Luxottica Group, a world leader in eyewear. Under the creative oversight of Miuccia Prada and Patrizio Bertelli, Prada coordinates the conception, design, styling and communications for all collections, while Luxottica ha s exclusive worldwide rights to the production and distribution of Prada and Miu Miu sunglasses and eyeglasses.Not only is this an important business agreement, but it is also an excellent example of comprehensive cooperation in creativity, style, production and distribution among two of Italys foremost industrial groups.FragrancesIn 2003, an agreement was entered into with Puig Beauty air Group, one of the worlds largest producers of cosmetics and fragrances, creating a joint venture for the production, distribution and development of Prada hearts.Here, too, Prada is actively involved in the various phases of product, creation and development as well as communications, while responsibility for production and worldwide distribution is in the experienced and highly qualified hands of Puig.In 2004, after lengthy and radical research by Miuccia Prada in cooperation with some of the most qualified noses in the world, gold the first Prada perfume for women was created. Greeted with unanimous critical and public acclaim, PradaAmber perfume has enjoyed encouraging commercial success in all markets where it has been presented. In 2006 Prada unveiled its first mens fragrance, Prada Amber Pour Homme, marking the birth of the first Made in Prada perfumes family under the amber scent.A new perfume for women, Infusion dIris, was launched in 2007, which was the key to developing a series of complementary, innovative and personal products for bodycare and for the home. From this new pillar a collection of limited edition fragrances was derived the Ephemeral Infusion Collection that includes Infusion de Fleur dOranger, Infusion de Tub use and Infusion de Vtiver.In 2011, Prada Candy, the third pillar of the Prada fragrances, is launched. A newperfume for women that highlights the funny aspect of the brand also in the hitsector.Mobile telephonesIn 2006, the PRADA Group entered into an agreement with LG Electronics, one of the world leaders in mobile telecommunicatio ns technology, to develop an innovative and iconic mobile telephone. By leveraging their respective skills, Prada and LG explored all of the products aspects together, both in terms of the table of contents (for example software, user interface and music), and in terms of the presentation (from the design to the packaging) the partnership created the Prada audio by LG, a unique, sophisticated and elegant telephone, the first in the world to have an interface that is completely touch screen.The Prada Phone by LG was launched in March 2007 in Italy, Great Britain, France and Germany, and subsequently on the principal Asian markets and in Latin America. The products high qualitative and innovative content enables a significant commercial success to be achieved, with more than 1,000,000 mobile telephones sold.In October 2008 Prada and LG launch the second phone, another quantum leap in mobile phone innovation and design, thanks to ultra-thin keyboard and new enhanced proficient featur es.In December 2011, Prada and LG unveiled the partnerships latest smartphone, the Prada phone by LG 3.0 that combines Pradas distinctive style with LGs innovative technology, including one of the biggest and brightest screens in the world with 4.3inch and 800-nit screen.7. PRODUCT LOGISTICS return distribution is handled through phoebe bird central warehouses, four in Italy and one in UK. It is managed by a group division which coordinates product storage, raptus and distribution, as well as arranging transport and customs procedures. key to the Prada Groups distribution strategy is the development of its retail channel in all markets, both consolidated and emerging, focusing in particular on nations with high evolution potential.The Groups distribution network extends across 70 countries, counting 551 directly-operated stores (at 30 April 2014), which form the backbone of the Groups international expansion strategy, and a selection of department stores and multi-brand retail sp aces in the most significant cities and stylish locations.The reasons for this strategy are many not only the DOS are the supreme casing for newly-launched collections, but they also offer a direct relationship with customers and provide real-time feedback on how each product category is performing. Over and higher up their primary role as a sales point, DOS also represent an important communication tool real embassies of each brand, they portray their image in a clear and consistent manner.Direct sales account for about 83% of consolidated revenues while the remaining 17% is generated by the wholesale channel (multi-brand retail spaces and department stores 16%), from franchising (about 1%).8. NET SALES OF PRADA8.1. NET SALES ANALYSIS(amounts in thousands of Canadians)end January 31, 2016 terminate January 31, 2015% changeNet sales of directly operated stores (DOS)4,344,81986.30%4,232,86583.90%2.60%Net gross revenue to independent customers and franchisees631,34912.50%756,21415. 00%-16.50%Royalties61,6661.20%54,3291.10%13.50%Net revenues, total5,037,835100.00%5,043,408100.00%-0.10%8.2. NET SALES OF DIRECTLY OPERATED STORES (DOS)ended January 31, 2016ended January 31, 2015% changeNet sales of DOS by geographical areaItaly12.80%11.90%10.70%Europe21.80%21.60%3.30%Americas13.40%13.10%5.00%Asia Pacific35.30%37.90%-4.40%Japan13.20%12.20%10.70%Middle East3.40%3.10%11.50% other countries0.10%0.10%41.40%nitty-gritty100.00%100.00%2.60%8.3. PRADA GROUP FIGURESwww.prada.com/ company profileFEBRUARY 20169. CAPITAL OR food market VALUE9.1. INCOME STATEMENTYear on year Prada SpAs net income send packing -26.59% from 634.04 million to 465.46 million despite relationly flat revenues. A bestow factor has been an increase in the selling, general and administrative costs as a percentage of sales from 48.33% to 54.41%.Gross margin72.12%Net gelt margin8.76%Operating margin12.92%RevenueNet IncomeReturn on assets6.05%Return on equity9.71%Return on investment7.59%9.2. sense o f equilibrium SHEETYear on year, reaping in dividends per share remained flat while earnings per share excluding laughable items fell by -26.59%. Additionally, five year annualized earnings per share step-up is in-line with the industry average relative to its peers.Current ratio22.24Quick ratio1.48Total debt/total equity0.3183Total debt/total capital0.24029.3. GROWTH RATES Year on year, growth in dividends per share remained flat while earnings per share excluding extraordinary items fell by -26.59%. Additionally, five year annualized earnings per share growth is in-line with the industry average relative to its peers.Dividends Per ShareDiv yield (5 year avg)0.24%Div growth rate (5 year)Payout ratio (TTM)99.03%Earnings Per ShareEPS growth (5 years)