Prada Group posts 16% growth in Q1 2024, but Prada is not the jewel in the crown.
While Prada itself posted an impressive 7%, the Miuccia Prada led Miu Miu eclipsed this at 89%. Founded in 1992, it’s fair to say that the past five years have been the real turning point in carving out its own space in markets.
The brand also recently topped the global Lyst index, where it has been placed in the top 5 over the past five quarters.
The momentum of the brand has somewhat lagged in China, but the impressive growth numbers are at least partially due to the brand strategy starting to pay dividends.
In our most recent edition of the Re-Hub COMPASS Index (measuring brand momentum across Chinese social media), Miumiu ranked at #13. This represents a YoY change in their index of 21 places (being #34 in Q1 2023).
In addition the brand is the only brand luxury flagship store on Tmall that has seen growth each month versus the previous year for EVERY month since 2022 (with the small exception of Jan 2023).
What sits behind the success?
❇️ Interestingly Miumiu’s marketing only really took off in China from Q1 2023. Prior to that the brand did generate engagement, but the growth since 2023 has been steadily increasing QonQ.
❇️Multi-faceted marketing: When assessing Miumiu’s activations its clear to it leverages the idea of not being ONE thing, but MANY things. This is typified by its wide range of different influencers that are used both individually and together.
❇️Miumiu select is the anthesis. Locally relevant celebrities, given a chance to select their favorite pieces from Miumiu’s new collections, sold with a unique label.
❇️Miumiu Upcycled also taps into a rising trend in China – sustainability and circular economy. The rise of second-hand luxury attests to this, and Miumiu is positioning itself to be part of the conversation.
❇️Premiumization: Miumiu’s average price on Tmall increased 29% from 2022 > 2023, and a further 9% 2023 > 2024 (January, but a consistent trend). Coupled with an average selling price increase across the same periods of 17% and 63% respectively. These metrics represent a blend of price raises, new product releases, and a shift in category distribution.
❇️Miumiu’s contribution from Bags and Clothing to its revenue increased from ~50% in 2022, ~60% in 2023, to more than 70% in 2024 to date. This shows the drive to upgrade consumers category entry or upgrade within the brand ecosystem.
❇️New products: A sign of a brand that is getting it ‘right’ is the performance of new product launches during the first three months. For Miumiu, since July 2023, these contribute an average ~20% of revenue (higher and more consistent than most brands).
The TL:DR – Miumiu has hit the mark in China by blending global trends with local relevance and activation. It has acquired consumers with lower priced offerings and has gradually premiumized along the way through price increases, category shifting and new products that delight.