Despite the poor economic malaise which is currently plaguing the global economy, Italian Luxury Design House Prada posted a whopping 72.2% increase in profits contributed by strong sales especially in Asia. Reported in Channel News Asia, the record profit represents a clear signal that the consumer appetite for luxury goods has stayed strong despite the gloomy economic forecast. According to the company, this record growth is due to their strong retail performance in Asia. Accordingly, their net profit rose to 431.9 million Euros last year, this is a mark improvement in from 250.8 million Euros the year before.
Prada, which is the parent company for several other luxury brands such as Miu Miu and Car Shoe was one of a number of western luxury brands that was turning their attention to China. According to a PricewaterhouseCoopers survey – By 2015, China is going to be the world's number 1 consumer market for luxury goods. Therefore Prada has been keen to tap on this undoubted potential by expanding into China which has generated 873 million Euros in sales last year.
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