Luxury vs. middle-class market: Prada Group's growth and PouYuen Vietnam's setbacks
Prada Cloudbust Thunder sneakers at $1370.
Italian luxury fashion company Prada Group is set to expand its workforce and production capacity in response to increasing demand. The company plans to hire over 400 workers, including students from its prestigious Prada Group Academy, with a focus on skills development. Prada Group employs strategic marketing techniques such as advertisements, online promotions, collaborations, and fashion shows to showcase their exclusive products, which are sold through physical and online stores. Prices for Prada's bags range from $1,500 to $3,500, footwear from $600 to $1,400, and clothing from $800 to $3,000.
Nike Motiva men's walking shoes at $145
Meanwhile, PouYuen Vietnam holds the position of the world's largest maker of branded sports footwear. However, the company faces challenges due to declining orders caused by low market demand in the USA. PouYuen Vietnam primarily produces footwear for Adidas and Nike, typically priced between $50 and $150. As a consequence of reduced orders, PouYuen has been forced to lay off 6,000 workers in Vietnam.
This situation underscores the significant impact of economic conditions on middle-class companies like Nike and Adidas, while Prada, with its affluent market focus, continues to thrive.
Sources:
- Prada March 2023 Press Release
- February 2023 press reports on PouYuen
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