Back in 2014 the world saw Prada’s annual profit fall a drastic 28 percent resulting in €451M. By 2015 the brand had seen a drop off of 27%, a further 16% in 2016 and finally a further 7% dip in 2017. Things were not looking good for the Italian Fashion house, since then the brand has repositioned themselves and worked out how to engage an entirely new luxury shopper.
Despite the pandemic Prada has reported profits for 2020. Even though sales fell 6% in the second half of last year, a surge in December Christmas sales restored profit figures to be on par with pre-pandemic revenue. So, how did they do it?
When Prada released the re-edition and re-nylon collections they made a huge impact on the millennial luxury buyer winning over a market that had previously been disengaged.
Two Key Things Happened:
A wave of 00's nostalgia brought millennial shoppers back to the brand driving more sales
The brand re-established themselves as a "sustainable"leader in the luxury space.
Nostaliga
Prada capitalised on their customer's obsession with 00's nostalgia. Recognising that their ideal audience was the right age to appreciatethe 2000's re-edition minimal over the shoulder bag silhouettes of their childhoods. They re-released a seriesof shapes from that era tapping into this audience's fond memories of childhood and early teen years, therefore winning audiences who had previously disengaged from the brand.
Sustainability Champions
Speaking to the sustainable nature of the recycled nylon used for the Re-Nylon collection, Prada doubled down on their commitment to win over the millennial luxury market. Knowing the massive emphasis on sustainability and environmentalism, they have made this a priority.By adding it as aa value it is now startingto define their messaging, visuals and content.
Key Takeaways
Knowing your customer can empower you to make strategic product decisions that yield huge results
Customer data can light the path to your next big win, learn as much as you can about your buyer's life stage.
Establish a cause that your brand can back that aligns with the causes your customers care about too. Make sure this is also authentic to you.