FACT SHEETS
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The PRADA Group
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Industrial activities
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Raw materials
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PRADA Group retail distribution channels
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Licensing agreements and joint ventures
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PRADA Group figures
March 2012
PROFILE OF THE PRADA GROUP
Prada was founded in Milan in 1913 by Mario Prada, Miuccia Prada’s grandfather, who
opened in the prestigious glass-covered Galleria Vittorio Emanuele II arcade in Milan
an exclusive shop selling leather bags, trunks, beauty cases and luxury accessories, soon
becoming a favourite port of call for the more elegant and refined members of the
European aristocracy and upper classes. In 1919 Prada was appointed Official Supplier
to the Italian Royal Household; as such, it was entitled to incorporate the House of
Savoy’s coat of arms and knotted rope design into its logo.
In the late seventies, Miuccia Prada and Patrizio Bertelli started their collaboration,
laying the foundations for the company’s subsequent international development.
Patrizio Bertelli is the first in the luxury industry to introduce a new business model,
applying uncompromised quality throughout the whole production chain and a
constant, careful control over the entire process. Miuccia Prada’s creativity, able to
infuse her work with thoughts linked to her day-to-day experiences and observations of
the environment in an original innovative way – thus anticipating trends - never
transcends the brand’s quality core-value and historic craftsmanship know-how. This
skilful balance makes it possible for Prada to become internationally renowned, so
much so that it was recognized as one of the 100 brands with the most value in the
world (Source: Interbrand).
A key attribute of Prada is its capacity for innovation in all areas. Being a pioneer in
introducing a new approach in the retail network, Prada is the first to launch a new,
revolutionary concept of stores - the so-called Prada Epicenters - designed by
internationally acclaimed architects such as Rem Koolhaas and Herzog & de Meuron.
An example which was later followed by all the leading brands in the industry.
Today the Prada brand includes men’s and women’s leather goods, ready-to-wear and
footwear which synthesize an innovative, sophisticated and modern design coupled with
the high quality typical of handcrafted products. Prada is also active in the eyewear,
fragrance and mobile phone sectors.
Prada’s horizons go beyond the confines of fashion: art, architecture, cinema and
culture in general are an integral part of the brand’s core values. The Fondazione Prada
(Prada Foundation) was established in 1993 to present “the most radical intellectual
challenges in contemporary art and culture”. It organizes contemporary art exhibits and
other cultural activities that have enjoyed great consensus on an international level. The
Prada Transformer in Seoul – designed in collaboration with architect Rem Koolhaas –
represents one of the most recent expressions of this approach. On March 28, 2011 the
Fondazione Prada announced its new exhibition space in Venice, the Ca’ Corner della
Regina, an historic palazzo on the Grand Canal which is going to be restored over a
period of six years with the goal of offering to the city of Venice, and beyond, a
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stimulating program of important events in the realm of the Arts. From May 31 to
October 2, 2011 Ca’ Corner was opened to the public with its first exhibition
documenting the multiple activity of the Fondazione Prada, such as the project for the
new permanent space in Milan – designed by architect Rem Koolhaas – to be unveiled
in 2013.
Prada is part of the PRADA Group, one of the global leading companies in the luxury
goods sector, which embodies an original business model that successfully combines
industrialised production processes with highly sophisticated workmanship and superb
handcrafted goods. The PRADA Group also includes Miu Miu - Miuccia Prada’s vision
of an alternative style – a brand with a strong personality, provocative and sophisticated
as well as free-spirited and avant-garde; Church’s, one of the world leaders in the luxury
footwear industry, established in 1873 in Northampton (Great Britain), and Car Shoe,
the first producer of the driving moccasin, characterised by a patent soft sole with
rubber studs, established in 1963.
The Group manufacturing is concentrated in 11 plants, 10 in Italy and 1 in Great
Britain, plus research and development laboratories. Each phase of the production
process is closely monitored and directly controlled: from the choice to the purchase of
the raw materials (external suppliers included), to the creation of prototypes, through to
the planning and coordination of external and internal manufacturing. The Group
products are sold in more than 70 countries around the world: besides a selection of
luxury department stores and multi-brand stores, the distribution network is composed
of 388 (31 January 2012) directly operated stores, a strong point in the international
growing process of the brand.
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Industrial activities
In all its production activities, PRADA Group successfully combines an industrial
approach with the spirit of handcrafted workmanship and outstanding quality in its
manufacturing processes. Equally important is the Group’s constant quest for excellence
and innovation in materials, processes and organisation.
Production activities are (sub)divided into three sectors - bags and accessories, ready-towear and footwear - coordinated centrally from the Terranuova Bracciolini offices in
Tuscany. The production is concentrated in 10 plants located in various Regions
throughout Italy and also work with expert external suppliers. Another plant, located in
Northampton, Great Britain, is dedicated to the production of Church’s footwear.
Each phase of the production process is directly controlled by Prada: from choice to
purchasing of raw materials (external suppliers included), to the creation of prototypes,
through to the planning and coordination of external and internal manufacturing. The
continuous development of internal know-how is the best possible guarantee of Prada’s
commitment to product innovation and production process improvement. The spirit
and values of craftsmanship, however, remain at the heart of all manufacturing
processes and represent a unique asset of all PRADA Group brands.
The PRADA Group’s production plants are concentrated entirely within PRADA spa
(with the exception of Northampton) and originate from both an internal development
and acquisitions of former suppliers over the last ten years. Fully modernised, often
with the addition of new plants built by leading architects such as Guido Canali (the
Levanella, Arezzo and Montegranaro, Ascoli Piceno plants) and Studio Cerri & Associati
with Vittorio Gregotti (Piancastagnaio, Siena factory), all were designed to optimise
manufacturing processes yet preserve and enhance the spirit of traditional
craftsmanship that was their original raison d’être and still motivates their workforce.
Group Logistics
Logistic services for the distribution of finished products are organised over 5 central
warehouse facilities, including 4 in Italy and 1 in Great Britain and are managed by a
forwarding agent within the Group that coordinates all post-production phases,
including customs procedures and bureaucratic matters. The Logistics Department
supervises acceptance of products arriving from the Group industrial sites subsequently
ensuring shipping and computer automated tracking of goods from the moment they
leave the warehouse to final delivery, as well as the quality control by means of a
specific structure.
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Raw materials
Prada places the utmost importance on raw materials that determine the quality of the
production process.
The acquisition of raw materials is entrusted to an internal structure within the company that
only chooses suppliers offering maximum quality. This criterion knows no compromise.
In many cases, the raw materials are exclusively produced for the PRADA Group, on the basis
of rigorous and specific requirements of both the style department and the acquisitions
department. This not only guarantees that the materials used to make each product are of the
highest quality, but also ensures their exclusivity, underlining the strong identity of all Prada
products.
Before being used for production, the raw materials pass strict quality controls by the
company’s technicians and inspectors.
The raw materials fall into two categories: hides and fabrics.
Hides
Hides have always been the basis of the success of the Prada brand, and are an integrated part
of its almost centennial history. In 1919, just five years after the opening of the original Prada
store in Galleria Vittorio Emanuele (1913), Mario Prada was appointed as Official Supplier to
the Italian Royal Household.
The know-how developed by Mario Prada, regarding the choice of different quality hides, as
well as tanneries most suitable for treating a particular type of leather, are an intrinsic part of
the company’s heritage that Mario Prada passed on, and that subsequent generations have
been able to preserve.
For Prada’s creation of leather goods, bags, accessories, but also items from clothing collections,
Prada uses around 2,2 million square metres of different varieties of leather a year.
Before being sent to the various production centres, the hides are subjected to a further quality
test that takes into account a whole range of requirements in order to supply the different
production centres with the most appropriate leather for a specific product.
The tanneries are selected not only because of their high quality of workmanship, but also due
to their capacity to keep up with the style department’s quest for creative innovation. Many
Italian tanneries are very avant-garde, especially for the treatment of fine leathers such as
python and crocodile.
The tanning of hides is an ancient process, and in many respects, still executed by hand. There
are many variables (temperature, water, air, humidity, type of leather, etc), therefore in Italy
separate production departments naturally came into existence to cater for the different
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tanning processes as not all techniques can be practised everywhere. Thus, a consolidated
tradition for a specific type of workmanship, developed through time.
The high quality of the hides has traditionally allowed Prada – and still does - to highlight the
natural appearance of the leather, avoiding chemical products or sprays, thus leaving intact the
natural patina and softness of the individual leather. This enhances the natural ageing process,
which, through time, only adds style and elegance to the finished product.
The fabrics
The PRADA Group annually uses approximately 4 million metres of fabric per year, varying in
type (silks, wools, cottons, linens, technical fabrics etc) and percentage, according to the season
and the collection.
As mentioned, a vast majority of these fabrics, such as printed silks, are made exclusively for the
different brands of the Group, based on drawings, style, and other factors specifically requested
by the design department for each collection.
Some of the workmanship is avant-garde and the fruit of intense research and development in
collaboration with the top fabric producers. This ongoing research has allowed Prada to open
new horizons in the field of fashion and luxury, creating and anticipating new trends.
Quality and innovation, as well as the respect for tradition, have always been the values Prada
has subscribed to. While consistently adopting a cutting-edge approach in the experimenting
new production techniques, new technologies and new fabrics, Prada has been able to
harmonise this innovative approach while maintaining its very strong ties with tradition for
craftsmanship and manual processes. Prada was the first label back in 1978 to use a particular
type of nylon made of a fine, twisted weave, appearing as precious as silk, obtained through a
special chassis. A new fabric trend was thus created in the world of fashion.
Prada's approach is that technology should serve ideas and creativity and not vice versa.
Therefore, technology applied to fabrics is not necessarily associated with futuristic fabrics or
designs: in fact, in the majority of cases most up-to-date technologies serve to reproduce luxury
quality and traditional colour, prints, etc, to achieve enhanced quality and precision processes.
March 2012
Retail distribution channels
Prada, Miu Miu, Church’s and Car Shoe products are sold through two distribution
channels:
- the retail channel, represented by the single-brand stores (including the three
Epicentres) directly operated by the company, which currently account for
approximately 77,9% of sales;
- the independent channel of multi-brand stores, department stores and franchises (socalled wholesale).
This distribution solution enables the Group to have a presence in the most exclusive
points-of-sale which are either single-brand or multi-brand worldwide.
The Group’s commercial strategy is based on a selective analysis of the potential of
individual markets, an innovative approach and rigorous control of display and
presentation criteria, and a continuous search for original sales concepts. Prada has
always pioneered new solutions combining design, architecture, and technology to
create environments that not only encourage sales but also communicate its unique
strong brand identity and the cultural influences and values of the Prada world in a
consistent and homogeneous way.
Towards the end of the nineties, Prada decided to redefine the concept of shopping and
enlisted the help of pioneering architects of international renown, Rem Koolhaas and
Herzog & de Meuron, recent winners of the prestigious Pritzker Prize. The result of this
partnership was the creation of the Prada Epicenters: areas and buildings which have
rapidly acquired landmark status both locally and internationally. Prada’s Epicentres
have not only transformed the concept of shopping but have also fused it with cutting
edge technology and a multitude of cultural stimuli, offering customers a whole range of
unique experiences and exclusive services. There are currently three Prada Epicentres:
one in SoHo, New York (designed by Rem Koolhaas in 2001); another in Aoyama, Tokyo
(Herzog & de Meuron, 2003); and the third in Beverly Hills, Los Angeles (also by Rem
Koolhaas, 2004).
Directly operated stores, including the three Epicentres, are designed, constructed and
managed in accordance with precise guidelines: location chosen are among the most
prestigious and the personnel is selected and trained to provide customers with an
exclusive treatment.
This type of store contributes to maintaining a very close relationship with customers,
providing immediate information about the market trend. Moreover, direct-sale stores
also provide very valuable support for the brand, acting as true ambassadors
communicating the Prada image consistently and uniformly all over the world.
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Prada manages the independent shops and department stores channel based on
selective distribution and a well-defined strategy of control aimed at maintaining
outstanding quality and high volumes, ensuring consistency in merchandising and
monitoring sales performance. Franchise shops are located in specific markets where
this form of retail is imposed by local legislation or custom, and entail partnerships with
local entrepreneurs with an excellent knowledge of the relevant market.
The wholesale channel, besides ensuring the brand benefits by a series of shop windows
in particularly significant positions in key markets, enables a direct and immediate
comparison to be made with the competitor brands. Therefore, the sales trend through
the independent channel represents a very useful indicator of the consumer trends and
brand strength.
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Licences and joint ventures
Eyewear
In 2000 the PRADA Group developed its first Prada and Miu Miu branded sunglasses,
and in 2003 it signed a licence agreement with Luxottica Group, a world leader in
eyewear.
Under the creative supervision of Miuccia Prada and Patrizio Bertelli, Prada
coordinates the conception, design, styling and communications for all collections, while
Luxottica has exclusive worldwide rights to the production and distribution of Prada
and Miu Miu sunglasses and eyeglasses.
Not only is this an important business agreement, but it is also an excellent example of
comprehensive cooperation – in creativity, style, production and distribution - between
two of Italy’s foremost industrial groups.
Fragrances
In 2003, an agreement was entered into with Puig Beauty & Fashion Group, one of the
world’s largest producers of cosmetics and fragrances, creating a joint venture for the
production, distribution and development of Prada perfumes.
Here, too, Prada is actively involved in the various phases of product, creation and
development as well as communications, while responsibility for production and
worldwide distribution is in the experienced and highly qualified hands of Puig.
In 2004, after lengthy and thorough research by Miuccia Prada in cooperation with
some of the most qualified noses in the world, Amber - the first Prada perfume for
women - was created. Greeted with unanimous critical and public acclaim, Prada
Amber perfume has enjoyed encouraging commercial success in all markets where it has
been presented. In 2006 Prada unveiled its first men’s fragrance, Prada Amber Pour
Homme, marking the birth of the first Made in Prada perfumes family under the amber
scent.
A new perfume for women, Infusion d’Iris, was launched in 2007, which was the key to
developing a series of complementary, innovative and personal products for bodycare
and for the home. From this new pillar a collection of limited edition fragrances was
derived: the Ephemeral Infusion Collection that includes Infusion de Fleur d’Oranger,
Infusion de Tubéreuse and Infusion de Vétiver.
In 2011, Prada Candy, the third pillar of the Prada fragrances, is launched. A new
perfume for women that highlights the funny aspect of the brand also in the beauty
sector.
March 2012
Mobile telephones
In 2006, the PRADA Group entered into an agreement with LG Electronics, one of the
world leaders in mobile telecommunications technology, to develop an “innovative and
iconic” mobile telephone. By leveraging their respective skills, Prada and LG explored
all of the product's aspects together, both in terms of the contents (for example: software,
user interface and music), and in terms of the presentation (from the design to the
packaging): the partnership created the “Prada Phone by LG”, a unique, sophisticated
and elegant telephone, the first in the world to have an interface that is completely
touch screen.
The “Prada Phone by LG” was launched in March 2007 in Italy, Great Britain, France
and Germany, and subsequently on the principal Asian markets and in Latin America.
The product's high qualitative and innovative content enables a significant commercial
success to be achieved, with more than 1,000,000 mobile telephones sold.
In October 2008 Prada and LG launch the second phone, another quantum leap in
mobile phone innovation and design, thanks to ultra-thin keyboard and new enhanced
technological features.
In December 2011, Prada and LG unveiled the partnership’s latest smartphone, the
Prada phone by LG 3.0 that combines Prada’s distinctive style with LG’s innovative
technology, including one of the biggest and brightest screens in the world with 4.3inch
and 800-nit screen.
March 2012
THE PRADA GROUP’S FIGURES
4
the number of brands: Prada, Miu Miu, Church’s and Car Shoe.
11
the number of production plants, 10 in Italy and 1 (Church’s) in Great
Britain.
70
the number of countries where Prada products are sold.
388
the number of directly-operated stores (31 January 2012).
3,514
the number of direct employees in Italy (at Jan. 31, 2011).
7,855
the total number of direct employees worldwide (at Jan. 31, 2011).
2,555 million
net revenues in FY 2011 in Euros.
March 2012