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Sales of Italian luxury goods organization Prada in China have recovered strongly since retail outlets have been oversteered there and, to date, have exceeded last year’s levels, EXECUTIVE Chairman Patrizio Bertelli told Reuters on Friday.
Bertelli said Chinese customers’ appetite for luxury goods remained strong despite the consequences of the coronavirus pandemic, which led the world economy into recession and froze overseas travel.
The virus first gave the impression in China of expiration last year and then spread to the rest of the world, forcing high-end stores to temporarily close outlets and inactivate production sites.
Overall industry sales are expected to fall by up to 35% by 2020, however, luxury equipment is on a sharp uptick in mainland China to restrict damage.
“To date, Sales of the Prada Group in China have already far exceeded 2019 levels, recording a double-digit expansion since the beginning of the year,” Bertelli said in an emailed statement.
He said the recovery in China had accelerated since late March, with sales expansion of up to 60% in the following months.
“We believe you can maintain the same trend in the coming months,” Bertelli said.
He added that Prada’s for Valentine’s Day in China, which fell this year on August 25, has reached an all-time high.
In the first part of the year, Prada’s global sales, indexed in Hong Kong, fell by 40% at constant exchange rates, the organization said in presenting its effects that retail sales in mainland China increased to 60% in June and 66% in July.
The Asia-Pacific region accounted for 44% of Prada in the six months to June.
Chinese buyers accounted for 37% of the world’s luxury purchases in 2019, according to consultancy Bain, most purchases made on overseas travel.
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