Sales for Prada Group were up 9 percent in 2013 -- which, as the company noted in its year-end report, is higher than the luxury sector's average 6 percent growth. With the Asia-Pacific region representing 37 percent of sales -- the brand's largest market, with Europe clocking in next at 22 percent -- China's crackdown on gifting has seemingly hurt the group's sales.
Prada's sales in Greater China were up 12.3 percent, outstripping the 11.4 percent rise in Asia Pacific. But that comes up short against 2012's 35 percent growth in China.
The brunt of that responsibility falls on the Prada brand's shoulders. Eighty-three percent of the group's sales come from Prada, with Miu Miu accounting for 15 percent and Church's Footwear 2 percent. Miu Miu is growing significantly slower than Prada, with sales up just 1 percent last year versus Prada's 11 percent growth.
The group is taking steps to grow Miu Miu's business in the coming years, though. Its first fragrance launch is slated for 2015 -- a standard way for luxury brands to bulk up sales and draw in consumers from a lower income bracket.
Miu Miu will open roughly 70 stores in the next two years, the group reports.
Japan, however, is much keener on Miu Miu than it is Prada: 14 percent of Miu Miu sales take place in the region, versus 9 percent for Prada. (Asia-Pacific is roughly the same for both.)
Another area that the group is looking to tap into in 2014? Men's. The area now represents 25 percent of Prada's sales. And while 46 percent of men's sales dollars go toward leather goods (compared to 69 percent in women's), RTW is a much more robust business, at 31 percent of sales. The group will be opening roughly 120 new stores in the next two years, 50 of which will be dedicated to menswear.
Note: This article has been updated to include Prada's Greater China sales figures for 2012 and 2013.