In the wake of the COVID-19 pandemic, numerous industries faced substantial hurdles, and the luxury sector was no exception. With consumers prioritizing essentials and tightening their budgets, the demand for luxury goods experienced a significant decline.
Despite ongoing challenges, some luxury retailers, such as Prada and Moncler, are observing signs of recovery, largely propelled by consumers in Asia.
Andrea Guerra, Prada’s chief executive officer, noted a positive performance in the retailer’s recent earnings report. Prada witnessed an upturn in retail sales across all regions, particularly in Japan. Factors contributing to this increase include the gradual relaxation of COVID-19 restrictions, an increase in local shoppers, and the resurgence of tourism in the region. Notably, Japan lifted its COVID-19 restrictions in April of the previous year, facilitating travel without stringent requirements.
During the first quarter, sales in Japan surged by nearly 46%, with a corresponding 16% rise in the Asia Pacific region. Additionally, consumers displayed heightened interest in clothing and accessories from Prada’s Miu Miu brand, resulting in an 89% sales increase for the quarter.
Similarly, Moncler, the Italian fashion house, experienced a 26% revenue growth across Asia. This surge was primarily driven by robust demand in mainland China, as well as increased patronage from both local shoppers and tourists in Japan and Korea. The continued prominence of Chinese shoppers in the luxury market appears to be extending to neighboring countries.
Moncler’s ready-to-wear line, recognized for its puffer coats, attributed its revenue growth partly to its direct-to-consumer (DTC) channel.
Despite the promising first-quarter results, Remo Ruffini, Moncler’s chief executive officer, remains cautious amidst the volatile macroeconomic landscape. Ruffini emphasized the necessity for prudence and adaptability in navigating ongoing uncertainties within the sector.
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