The COVID-19 epidemic posed significant hurdles for businesses, including the luxury industry. With people stressed for cash and only spending on necessities, demand for luxury products fell.
Even as brands like Gucci strive to recover from the pandemic-induced financial impact, Asian buyers appear to be driving the revival of other luxury merchants such as Prada and Moncler.
"Prada has had a positive start to the year," stated Andrea Guerra, Prada's CEO, in the retailer's most recent financial statement.
Prada's retail sales increased across all areas, particularly in Japan. According to the report, the surge is attributed in part to the relaxation of COVID-19 regulations, an increase in local shopping, and the assistance of visitors. (Japan formally abolished its COVID-19 limitations in April of last year, enabling visitors to enter without a vaccination certificate or a negative COVID-19 test result.)
Sales in Japan increased by approximately 46% in the first quarter. Meanwhile, the corporation said that revenues in the Asia Pacific area increased by 16%. Furthermore, buyers are buying more apparel and accessories from the group's Miu Miu brand, which had an 89% increase in sales during the quarter.
Meanwhile, Italian fashion giant Moncler is profiting from Asian customers as well. The firm recorded a 26% increase in revenue throughout the continent, driven in part by strong demand in mainland China, as well as demand from both local customers and visitors in Japan and Korea, according to its results release. Chinese customers have long been a driving force in the luxury sector, and it appears that their neighbors have joined them.
Meanwhile, Moncler's ready-to-wear brand, famed for its puffy jackets, reported a rise in sales due to its direct-to-consumer (DTC) channel.
Despite its first-quarter performance, Moncler is "conscious of the volatile macroeconomic environment," according to CEO Remo Ruffini. Those normalizing trends in the sector would compel Moncler "to remain prudent and reactive in light of these ongoing uncertainties," Ruffini underlined