Prada Group's Q4 Performance Paves the Path to Success

Post by 
Thomas Piachaud
March 5, 2024

Prada Group unveiled their 2023 sales performance with the highlight being a 58% rise in Miumiu’s sales FY and an even more impressive 82% increase in Q4.

Behind the Stat: Miumiu has long been touted as an up and comer, often mentioned as being the hottest or most buzz worthy brand. Does that translate to China?

🔶 From financial reporting, Prada accounts for nearly 74% of the groups revenue, with Miumiu nearly 14%. Miumiu is roughly 20% the overall size of Prada within the group in terms of revenues.Let’s stick with this 20% and see how Miumiu stacks up over-time in China. For our comparisons, we analyzed Q1 2022 vs Q1 2023 vs Q1(TD) 2024 to highlight the trend – all the changes we highlight have been especially accelerated since Q2 2023.Brand Generated Content

🔶 Weibo - Miumiu generated only 3.3% of Prada’s BGC engagement in 2022, rising to 8.2% in 2023 and for 2024 it now stands at 30.5%. This is driven by an increase of over 500% (not full quarter yet! So even more impressive) 2024 vs 2022, coupled with a nearly 40% decline for Prada on Weibo BGC engagement.

🔶 RED– Miumiu appears to have a better resonance on the more fashion forward social media channel, generating 7.1% of Prada’s engagement in 2022, 21.7% in 2023 and 46.6% in 2024. These higher numbers perhaps reflect RED being a key strategic focus for the brand to raise awareness. Prada also saw a decline in RED engagement.

🔶 User Generated Content – The trends for both brands are reflected in the UGC posts. Miumiu accounts for 114% of Prada’s posts on RED in 2024 vs 47% in 2022. On Weibo - 3.5% in 2022 increased to 14% in 2024.🔶 Tmall – the social metrics show that Miumiu is indeed driving growth in China, but what about ecommerce?

🔶 Miumiu accounted for 37.5% of Prada’s revenue in Q1 2022, rising to 42.9% in Q1 2023. Q1 (TD) for 2024 Miumiu’s revenue is now 7.4% higher than Prada’s.

🔶 This gives us a 59.3% growth rate 2024 vs 2022 (with still one month left to go), showing that Miumiu on pace to reflect its Q4 2023 growth rate of 82% (yes -only on ecommerce – offline performance could be different).

Moving Forward

🔷 Miumiu has grown significantly in China over the past 2 years. Even though it grew froma small base, the high triple figure growth rates are impressive to say the least. Most impressively its Tmall revenue eclipsing Prada in 2024 so far.

🔷 For Prada, the brand has experienced declines in some key metrics, BGC engagement, UGC posts on Weibo, Tmall revenue, signalling caution – however, the market suggests that the brand is performing well currently in 2024 in brick-and-mortar channels, while the Tmall performance drop is likely due to issues in product stock.

The group now sits in a favorable position – an established player that raises eyebrows with innovative marketing, and an up-and-coming star. With an overall focus on sustainability added into the mix, the group looks towards a promising 2024.

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