Prada focuses on its bags to offer shoppers their money's worth

Although Miuccia Prada may be headstrong when it comes to her view of Prada, the fashion house has began to change its ways as part of its turnaround plan after being highlighted as one of the worst performing luxury stocks on the market. Unsurprisingly, part of its path to change includes its handbags.

The Italian luxury fashion house, which also owns Miu Miu, Church's and Car Shoe, posted its lowest profit in five years this year, having missed its earnings forecasts for 11 out of the last 12 quarters. Seen as one of the most expensive of all the luxury fashion houses, Prada has been struggling to stem declining sales and slowdown in demand from its Asia-Pacific region . Therefore, the fashion house decided to turn to its roots - leather goods and bags - to help turn the tide.

When Prada debut its Autumn/Winter 2016/17 collection in Milan this February, most of the looks were heavily accessorized with leather goods. Models took to the catwalk wearing chokers and belts and holding handbags, which ranged from the traditional, boxy Prada bags, to smaller crossbody bags. However what sets these bags apart from the Italian fashion house's previous collections are three things: their starting price point, the option to buy them online and the option to customize them.

Despite Miuccia Prada herself previously proclaiming there are enough wealthy people in the world who are able to afford Prada and will continue to do so, the company has been diversifying accessories and leather good offering. Stefano Cantino, Strategic Marketing director at Prada, stated that the company was "working deeply to really fill all the price ranges," during an investor presentation in April. He added Prada aims to double its e-commerce sales within the next two years by boosting the number of categories offered online, so with its increased focuses on leather goods and accessories customers can expect more bag for their bucks.

According to analysis by Exane BNP Paribas, Prada's bags featured in its online store by summer 2016 have become less expensive. The Italian luxury retailer has increased the number of entry-level accessories (500 euros and 1,000 euros) to account for 18 percent of the collection. In addition, half of the handbag styles featured are new to Prada's offering and they are available in a larger selection of colours and materials than their luxury counterparts. For example, on average a Prada handbag will be available in 29 iterations, which is more than offered by Burberry or Gucci online. And for an extra 650 euros, customers can even select their own embellished straps, a clear sign change is underfoot at Prada.