It’s no secret that Prada has been on a slippery slope of popularity since 2011. However, the brand just can’t turn its image around. Prada’s stock price is a direct reflection of the brand’s success and it’s sad. In 2013 Prada was at a high of $81.50 per share. That number has fallen to $28.30 per share, today. A net change of -$60.20 per share is detrimental, but what is the cause for all of this change?
First of all, Prada leather quality has been on the decline. The bags are not worth anything close to what they cost. Many online influencers have shared their horror stories about Prada purses and small leather goods. With poor quality, Prada can’t compete with other luxury brands- a $3,000 bag from Gucci prevails over a $3,000 Prada bag. They lose profit and their investors lose confidence.
Another issue with Prada is their introduction of nylon bags. Nylon is a very cheap material, that, although strong, doesn’t scream luxury. Prada nylon is nothing special- it is just nylon with a Prada emblem on the good. It fades, it frays, it tears, and it snags. So in reality, a nylon tote is really just a $1,480 garbage bag. Then why is it used? Prada uses nylon for the sole purpose of increasing profit. When it only cost $30 to make a $1,480 tote, the profit margin increases drastically. This is a technique Prada is using to try to stay alive as a company.
Prada’s decline can also be attributed to its lack of appeal. Although Prada has great designs and styling, it is not popular among new age groups- also known as the next set of customers. Without obtaining support from newer generations, the brand faces the consequences of declination because what once sold no longer sells.
Although there are many smaller reasons for Prada’s decline, quality and appeal are the biggest issues. If something isn’t done to turn the brand around, we may no longer see this company in existence… and maybe that’s a good thing.
But remember, always stay inspired!