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Prada Half-Year Profits Soar On Growing Asian Demand

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It won't get much better for Prada, there's a huge counterfeit market across Asia mostly based out of China. Prada can make profit selling out of the biggest cities in Asia as that's where rich people go. But the average person is happy with a knockoff.

They can probably reach 300-400 million euros though. Prada is the most overpriced/ expensive tat I've ever seen there's no surprise they make such obscene profit.

As for anyone thinking of joining the high quality consumer market, it's a bad idea. People buy mostly for the name and quality isn't that important anymore, I remember someone posting about a study into jean brands and found the cheapest jeans last longest. The brand market is like politics, it's about how big your advertising budget is.

Only two ways to make money now, selling expensive things to rich people or selling wholesale. The latest game around is to buy samples from existing factories, reverse engineer the product and draw up a manufacturing blueprint. Start up a special factory that has the flexiblity to make all kinds of unique products then get much better profits from wholesaling. The reverse engineering method is why you can get perfect replicas (ie same quality) of big brand products including Prada, usually that's due to the official Prada factory staff selling the manufacturing blueprint behind the company's back.

As the problem right now is too many wholesale agents so the margins are very thin unless you can manufacture yourself, thin margins still work because many people sell a wide range of products but if you can manufacture the products that's where the money is now.

In 50 years it will probably be possible to buy a 'manufacturing toolkit' for a few thousand pounds and you'd be able to programme it to manufacture things right in your home. For example to manufacture electronics and other plastic moulded products.

Edited by Saberu

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It won't get much better for Prada, there's a huge counterfeit market across Asia mostly based out of China. Prada can make profit selling out of the biggest cities in Asia as that's where rich people go. But the average person is happy with a knockoff.

They can probably reach 300-400 million euros though. Prada is the most overpriced/ expensive tat I've ever seen there's no surprise they make such obscene profit.

As for anyone thinking of joining the high quality consumer market, it's a bad idea. People buy mostly for the name and quality isn't that important anymore, I remember someone posting about a study into jean brands and found the cheapest jeans last longest. The brand market is like politics, it's about how big your advertising budget is.

Only two ways to make money now, selling expensive things to rich people or selling wholesale. The latest game around is to buy samples from existing factories, reverse engineer the product and draw up a manufacturing blueprint. Start up a special factory that has the flexiblity to make all kinds of unique products then get much better profits from wholesaling. The reverse engineering method is why you can get perfect replicas (ie same quality) of big brand products including Prada, usually that's due to the official Prada factory staff selling the manufacturing blueprint behind the company's back.

As the problem right now is too many wholesale agents so the margins are very thin unless you can manufacture yourself, thin margins still work because many people sell a wide range of products but if you can manufacture the products that's where the money is now.

In 50 years it will probably be possible to buy a 'manufacturing toolkit' for a few thousand pounds and you'd be able to programme it to manufacture things right in your home. For example to manufacture electronics and other plastic moulded products.

I can't wait for those 3D printers to become mainstream. I've spent a fortune on lego cubes and similar overpriced artifacts and can't wait to get my own back.

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Something that is mis-reported is the state of the global economy. I keep seeing people saying the global economy is in tough times. It is actually just the major European nations and America. The global economy is actually growing at an impressive 4% a year right now.

The growth is just happening in places like East Asia, South Asia, the Middle East and Latin America. Places with vast populations that previously were not that involved in global trade.

Imagine you own a vast cattle ranch in Argentina, and you just found out the world price of beef rose again. Your daughter might be getting Prada for Christmas.

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Something that is mis-reported is the state of the global economy. I keep seeing people saying the global economy is in tough times. It is actually just the major European nations and America. The global economy is actually growing at an impressive 4% a year right now.

The growth is just happening in places like East Asia, South Asia, the Middle East and Latin America. Places with vast populations that previously were not that involved in global trade.

Imagine you own a vast cattle ranch in Argentina, and you just found out the world price of beef rose again. Your daughter might be getting Prada for Christmas.

Imagine China had stockpiled too many commodities, had bubblicious inflation, and QE was temporarily off the table.

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So an Italian luxury goods brand is succeeding in turning the East Asians into mindless consumer drones willing to pay 20 times cost for a piece of leather, and everyone thinks this is sign of how well the East are doing?

Wake me up when a Chinese brand is doing well selling to Westerners. ;)

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Wake me up when a Chinese brand is doing well selling to Westerners. ;)

Chinese businessmen are too busy minting much more money from wholesale to get into the brand business. I think the most successful wholesalers probably go straight into commodities or property once their wholesale business earns them a few hundred thousand pounds/ month.

Land development for property is big money in China now mainly because of all the excess cash flowing around from these rich businessmen buying up property and the huge wealth gap.

My plan is to go from wholesale to commodities, I will start by private investing to become a shareholder in a junior miner then from the knowledge learned and future prosperity try and become a partner in an exploration firm.

The reason commodities and property are the biggest money spinners is that they are the ultimate resource, everything is made from material and everyone needs to buy land to live on. Hence that's where the biggest margins exist because until the land is developed or the resources discovered they have a very low value, it's also where the biggest demand exists.

This is why rich people are laughing all the way to the bank when they invest in commodities and property development.

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Chinese businessmen are too busy minting much more money from wholesale to get into the brand business. I think the most successful wholesalers probably go straight into commodities or property once their wholesale business earns them a few hundred thousand pounds/ month.

Biiiiiiiig mistake. Brands are the secret sauce that allow you to move production from one place to another cheaper place and still charge exactly the same for your product.

It also permits a much higher profit margin, as people are buying the intangible, ethereal dream as opposed to the boring actual physical product.

As for the Chinese businessmen going into property... :lol: Good luck with that :rolleyes:

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  • 335 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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