{"id":11608,"date":"2011-12-16T21:12:14","date_gmt":"2011-12-16T21:12:14","guid":{"rendered":""},"modified":"2011-12-16T21:12:14","modified_gmt":"2011-12-16T21:12:14","slug":"Prada-to-extend-slump-as-China-shoppers-cut-back-","status":"publish","type":"post","link":"https:\/\/asiancemagazine.com\/?p=11608","title":{"rendered":"Prada to extend slump as China shoppers cut back"},"content":{"rendered":"<p><strong>Prada SpA is falling out of fashion six months into <a href=\"http:\/\/www.asiancemagazine.com\/news\/2011\/05\/20\/prada-gets-nod-for-us-2b-hong-kong-ipo\">its Hong Kong trading debut<\/a> as investors brace for Chinese shoppers to curb spending.<\/strong><\/p>\n<p>Shares of the maker of $2,000 bags and Miu Miu shoes, which gets more than 42 percent of sales from Asia, have dropped 32 percent from their July peak.<\/p>\n<p>&#8220;Chinese shoppers could cut back spending on luxury items in the near term, as the stock markets and the property markets have corrected steeply this year,&#8221; said Eddie Lau, head of regional consumer research at Citigroup. &#8220;The wealth effect is fading.&#8221;<\/p>\n<p><strong>Luxury goods sales in China will reach a record 88.8 billion yuan ($14 billion) in 2011<\/strong>, rising 12 percent this year and growing 82 percent since 2005, Euromonitor International estimates.<\/p>\n<p>China will grow 8.5 percent next year, the lowest pace in 11 years, the Organization for Economic Cooperation and Development forecasts.<\/p>\n<p>Asia is Prada&#8217;s biggest market, with more than 42 percent of its 2 billion euros revenue in the fiscal year ending January, compared with 29 percent two years earlier.<\/p>\n<p><strong>Prada&#8217;s stock<\/strong> has lost 32 percent from <a href=\"http:\/\/www.asiancemagazine.com\/news\/2011\/06\/24\/prada-makes-lackluster-ipo-debut\">its July 27 record of HK$49.45<\/a>, wiping more than $5 billion off its market value. The benchmark Hang Seng Index has lost 19 percent in the same period. <strong>The luxury goods maker, which raised $2.5 billion in June through Hong Kong&#8217;s biggest public offering this year, still trades at 20.52 times expected earnings, more than double that of the benchmark.<\/strong><\/p>\n<p><a href=\"http:\/\/www.sfgate.com\/cgi-bin\/article.cgi?f=\/g\/a\/2011\/12\/16\/bloomberg_articlesLWAIOZ6S972A.DTL#ixzz1gqKZoIr9\">Read more<\/a><br \/>\n<!--break--><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prada SpA is falling out of fashion six months into its Hong Kong trading debut as investors brace for Chinese<\/p>\n","protected":false},"author":1,"featured_media":70655,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[1],"tags":[],"class_list":["post-11608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"magazineBlocksPostFeaturedMedia":{"thumbnail":false,"medium":false,"medium_large":false,"large":false,"1536x1536":false,"2048x2048":false,"colormag-highlighted-post":false,"colormag-featured-post-medium":false,"colormag-featured-post-small":false,"colormag-featured-image":false,"colormag-default-news":false,"colormag-featured-image-large":false,"colormag-elementor-block-extra-large-thumbnail":false,"colormag-elementor-grid-large-thumbnail":false,"colormag-elementor-grid-small-thumbnail":false,"colormag-elementor-grid-medium-large-thumbnail":false},"magazineBlocksPostAuthor":{"name":"Admin","avatar":"https:\/\/secure.gravatar.com\/avatar\/53e6cdc30765aade0129f85e5aeb50124b1d3f5bb9a70373be31e4eb328371e0?s=96&d=mm&r=g"},"magazineBlocksPostCommentsNumber":"0","magazineBlocksPostExcerpt":"Prada SpA is falling out of fashion six months into its Hong Kong trading debut as investors brace for Chinese","magazineBlocksPostCategories":["News"],"magazineBlocksPostViewCount":138,"magazineBlocksPostReadTime":2,"magazine_blocks_featured_image_url":{"full":false,"medium":false,"thumbnail":false},"magazine_blocks_author":{"display_name":"Admin","author_link":"https:\/\/asiancemagazine.com\/?author=1"},"magazine_blocks_comment":0,"magazine_blocks_author_image":"https:\/\/secure.gravatar.com\/avatar\/53e6cdc30765aade0129f85e5aeb50124b1d3f5bb9a70373be31e4eb328371e0?s=96&d=mm&r=g","magazine_blocks_category":"<a href=\"#\" class=\"category-link category-link-1\">News<\/a>","_links":{"self":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/11608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11608"}],"version-history":[{"count":0,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/posts\/11608\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=\/wp\/v2\/media\/70655"}],"wp:attachment":[{"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/asiancemagazine.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}