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Prada just posted its lowest profit in five years, and it's trying to get back on track by closing stores and focusing on more affordable handbags.
Racked investigated Prada's decline in January 2015; it seems like the same issues from last year are still plaguing the fashion house, including unrest in the Asia Pacific market, and the problem of ubiquity.
In addition to selective store closures, Prada wants to launch bags that aren't so staid or expensive. "We are working deeply to really fill all the price ranges," Prada’s strategic marketing director Stefano Cantino said in an investor presentation, according to Bloomberg. Cantino said Prada plans to add more bags in the $1,370 to $1,600 price range. "There is strong demand for newness," he said.
We've heard Prada's cheaper bag promises before though, and $1,370 doesn't really qualify as affordable.
Bloomberg also reports that Prada is trying to distance itself from a word that actually does make sense: "I don’t like the word luxury," said Chairman Carlo Mazzi. "Value for money is our strategy for the future."
The brand's plan includes doubling down on e-commerce and social media — to a certain extent. It's taking its sweet time getting on Snapchat, with an expected launch date of October. Prada also wants to double its e-commerce sales over the next two years. That plan doesn't, however, include selling Prada clothing on its website any time soon.