The customer is very sensitive to price. They travel and if they know they can get something cheaper in Milan or London you risk losing their loyalty.

This is good news for Prada. This could be the start of a new growth phase for the company.

Time is money. Yves Saint Laurent is eating up a quarter of Gucci's profits. How long can they afford that?

It is not exactly a new market. All the big Italian brands already have stores there.

Certainly merger and acquisition activity will pick up. There are many small- and medium-size companies that need to consolidate to compete, especially in Italy.

The fourth quarter profit was below estimates, my estimate was 590m or 44 cents per share.