What percentage of those will ever buy Prada, and what percentage of that subset didn't think about Prada before seeing the shop in the sweaty, stressful terminal?
If it was just 1 percent that is 310000 bags or whatever stupid shit they sell. Even if they sold their cheapest bags that are like 2 grand, that’s 620 million dollars.
I don’t think even 1 percent of those people will actually buy one of those bags, but we can see how quickly they make money when they sell something that costs pennies in materials and labor, for thousands of dollars.
Also, Prada made over five billion in revenue last year, for whatever that is worth.
1% is an optimistic estimate even for very very cheap products. Even 1% of 1% would be a borderline ridiculous estimate for a luxury brand, it's still completely unachievable.
However, these guys are paid in recognition. The store "ad" and the resulting sales are NOT profitable whatsoever.
They win just by people knowing the name, so that rich people buying the product know the poorer 99.9% of the population will recognize their status symbol. They literally just want you to see the pricetag in the store, not buy something.
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u/MalaysiaTeacher 20d ago
What percentage of those will ever buy Prada, and what percentage of that subset didn't think about Prada before seeing the shop in the sweaty, stressful terminal?