Prada sees China sales tripling in 2-3 years

Prada said it expects Asia to account for half of its business within a year, with Chinese sales tripling over the next two to three years.

‘About 40 percent of our business is from Asia, and it may rise to 50 percent next year,’ Deputy Chairman Carlo Mazzi told the Hong Kong Economic as reported by Reuters. ‘I don't think China’s economy will be seriously hit by the global economic crisis.’

The Italian fashion brand went public on the Hong Kong stock market in June 2011. Previously, Prada re-staged its S/S ’11 show in Beijing in January 2011. The brand reported that sales for the six months to July surged 38% from the previous year to €223m.

Prada is among many European luxury houses pinning growth hopes on Asia. Burberry staged a special-effects-heavy show in Beijing last spring and Christian Dior produced a couture-heavy extravaganza in Shanghai. Yesterday, American handbag designer Rebecca Minkoff announced that she plans to open her first stores in Tokyo as opposed to New York, where the brand is based.

Luxury brands’ expansion into Asia could have knock-on effects to UK and European retail. Last week, HSBC reported that as much as 50% of all luxury goods sales in Western Europe come from visiting foreigners.