I Prada Case Study

And, there also are concerns for luxury brands managers that for pricing. In one aspect, less discount promotions on the websites are involved in compared to high street fashion websites, which might affect consumers on online purchase. In USA, UK or Europe, there are huge discount events, such as summer sales, winter sales as well as Christmas sales for almost 50% off, whiles in China, there are few of promotions with 80% off, even some of them 90% off only, with a much higher aftersales price compared to the original tag price of the same item in its birth hometown. As mentioned above for the price difference problem, it has a similar effect in China. Announced in March 2015, the price of Chanel Europe has increased by 20% and decreased a similar amount in China, due to the Europe stocks fall(Guarino, 18 May 2015). Prada then took the similar action. And Fan (2014) also mentioned that from the report, 24% of the luxury branding goods were purchased …show more content…
According to previous study conducted by Moore and Doyle (2010), achievement of a brand has been contributed by establishing good communication devices to mark its value, position and its products. Selection of Prada’s position in market was achieved because of its boutique site and the material of product. Its first boutique was located in a famous arcade, where was near the city’s famous Opera House. This first boutique is still standing in a great visible presence even now. Furthermore, the material of product has been made to focus on leather. Its attractive products draw attention from those customers who require an elite lifestyle and therefore, Prada meets their needs. Also, Prada shared similar groups of customers with other Italian luxury brands, such as Gucci and Louis Vuitton. Yet, there are some striking differences. These differentiations helped to distinguish Prada from other famous luxury