Prada to cull wholesale sales channels

prada-1024x668.jpg

Italian luxury fashion label Prada is to cull its wholesale distributor list, in order to take more direct control of pricing.

In a short filing with the Hong Kong stock exchange (where the company is listed), Prada said that its board has analyzed in detail the structure of its wholesale channels “and noted the growing complexity and fragmentation of the wholesale market”.

Consequently, the board has resolved in favor of additional rationalization of its network of independent partners.

“The Prada Group considers it essential to ensure greater consistency in pricing policies across retail and digital channels,” said chairman Carlo Mazzi in the filing.

“This strategic review is intended to further strengthen the Prada Group brands with the aim of supporting sustainable long-term growth.”

The statement offered no further details of how the rationalization would be undertaken or how many wholesalers would be culled, although it is apparent online distribution may be most affected.

Like many luxury brands, Prada wants to maintain relative product pricing between wholesalers and its own stores, in much the same way Apple has succeeded globally.


About Retail News Asia

Retail News Asia is committed to providing local and global retailers with the latest news from the Asian retail market on a daily basis.

We have resources for everyone from independently owned business owners to online-only retailers and major chains expanding their reach throughout the Asian market. Retail News is “the news source” with over 50 weekly posts and 13,6 million readers.


CONTACT US

CALL US ANYTIME

Most read



Retail updates

Stay up to date of the lates updates and retail news from Asia.








X