Italian luxury fashion house Prada has noted plunge in its preliminary revenues, due to low sales in Greater China region which is facing sluggishness in economic growth and a clampdown on extravagance.

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The retailer reported that its consolidated net revenue dived 0.2 per cent for a year earlier to 3.54 billion euros (US $ 3.94 billion) in the 12 months to January 31, 2016. Further to this, a fragile Chinese yuan and a change in consumer’s buying behaviour towards more inexpensive brands have downcast the buying capacity of mainland Chinese tourists in Hong Kong, a traditional shopping hub, in the three months through January.

Besides, luxury goods maker’s shares have gone down by 44 per cent over the past year, underachieving the benchmark Hang Seng Index which has dropped 19 per cent in the same period. It has also been observed over a course of time that growth in the luxury goods market has dived to low single digits from more than 10 per cent four years ago, as consumers are looking for better deals which are less expensive and more affordable. This is making a notable shift in buying of other brands such as Furla, Longchamp and Kate Spade in the United States of America.

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Headquartered in Milan and founded in 1913 by Mario Prada, Prada S.p.A specializes in ready-to-wear leather and fashion accessories, shoes, luggage, perfumes, watches, etc.