Anti Essays

Anti EssaysResearches have brought up the incompatibility between luxury and Internet, since one characterized by exclusivity and other by inclusivity. For brands in the mass market, the purpose of communication is visibility. Accordingly, the Internet appears to be the media that consumers use the most. Conversely, the luxury market has to show an image of selectivity and rarity. (Geertz & Veg-Sale, 2011, 81-82) On the one that fact is true, but on the other hand Internet today is THE information source so any business that wants to be successful, has to be in the Internet. Brands have to stay in step with their times to avoid becoming outmoded. Even since recently most luxury brands kept away from the Internet. Versace and Prada did not have corporate websites until 2005 and 2007, respectively (Okonkwo2009, 302). Since then Prada has been actively developing the website, in 2009 May online store was launched in Europe and in 2010 July in the USA. The merchandise in the online store is limited to leather goods and eyewear, Prada Group COO Sebastian Suhl Since told that „...the e-store had shown very encouraging growth. “ Currently Prada e-store is available in 19 countries. E-commerce doesn’t make Prada unique, though, because competitors are catching up as well and big players in luxury such as Louis Vuitton, Ralph Lauren, Versace, Gucci and others also have e-commerce set up. On the 24th of June 2011, Prada launched on the Hong Kong Stock Exchange. Prada was the first Italian company to list in Hong Kong and its demonstrating the importance of the Asian markets to luxury brands right now. Prada’s choice of Hong Kong as a listing venue was controversial at home in Italy, but owner and designer Miuccia Prada said that the decision was an easy one, given Chinas relevance as a major economy and its voracious appetite for luxury products. Chinas consumption of luxury goods is forecast to grow 18 percent annually to about $27.5 billion by 2015, from about $12.2 billion in 2010. (Barreto 2011) Prada raised about $2.14 billion from the initial public offering (IPO), with a majority of shares coming from existing stock owned by Miuccia Prada, and others in the company. The IPOs aim was to pay down debt and fund expansion. Right now Prada Group has 358 directly operated stores aims to have about 550 directly operated stores by the end of 2013. (Zargani 2011) Let’s take a closer look to the Prada group’s results in 2010. Net revenue was€2.017 billion which is 31.8€ higher than the year before.

Anti Essays 7.7 of 10 on the basis of 701 Review.