Italian luxury fashion brand Prada has reported a strong recovery in its business in China. The recovery is so strong that the company's sales have managed to outpace its performance last year, before the coronavirus managed to disrupt consumption and economic activity in the world's second-largest economy.
Prada's chief executive officer, Patrizio Bertelli, stated that the appetite of Chinese consumers for luxury products has remained largely elevated despite the pandemic. He pointed out that even as the pandemic brought global economies to their knees, Chinese consumers have continued to buy Prada products in large volumes through online channels.
During the spread of the pandemic in China during the first few quarters of this year, luxury retailers such as Prada were forced to close down their stores amid government-mandated lockdowns and shelter-in-place orders. The same companies were also forced to shut down their manufacturing facilities, negatively affecting global supply chains.
Bertelli noted that despite all of those factors, the company's sales in China from the start of the year up to this month have managed to largely exceed sales levels recorded in 2019. He added that sales growth has hit double-digit figures year-to-date.
Prada noted that sales in China managed to increase apace at the end of March. Every month after that, the company sales grew by up to 60 percent month-on-month. Bertelli stated that he believes the same trend can be maintained throughout the remaining months of 2020.
The luxury goods retailer revealed that one of its most profitable days this year fell on China's Valentine's Day, which was celebrated on August 25. Sales numbers generated during the single day set a new all-time high for the company.
During the first two quarters of this year, Prada's global sales plunged by more than 40 percent. However, the company noted that its sales in mainland China remained strong, with 60 percent growth in June and 66 percent growth in July.
China and the Asia Pacific region accounted for about 44 percent of Prada's total sales for the six months to June. According to data published by consultancy firm Bain, Chinese buyers bought about 37 percent of global luxury goods in 2019.
