Prada SpA plans to introduce more lower-priced handbags and double its online business in an attempt to reverse two years of stagnant sales. The Milan-based company will also close stores and narrow the spread on prices of new products between regions to about 10 percent, Strategic Marketing Director Stefano Cantino said in an investor presentation Monday in New York.
“We are working deeply to really fill all the price ranges,” Cantino said of Prada’s plans to introduce more bags costing between 1,200 euros ($1,370) and 1,400 euros. “There is strong demand for newness.”
Prada plans to double its e-commerce sales over the next two years by increasing the number of categories it offers online, particularly shoes, and expanding its social media activities, Cantino said. Prada doesn’t plan to sell clothing over the Internet, preferring instead to direct consumers to the company’s 618 stores, he said. It will be on Snapchat Inc. by October, the executive said.
“I don’t like the word luxury,” said Chairman Carlo Mazzi. “Value for money is our strategy for the future.” Prada co-Chief Executive Officer Patrizio Bertelli didn’t speak on the call.