PRADA Group
FACT SHEETS
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PRADA Group
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Průmyslová činnost
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Výrobní střediska
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Suroviny
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Maloobchodní distribuční kanály PRADA Group
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Licenční smlouvy a joint ventures
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PRADA Group – čísla
PRADA Group
PRADA Group
PRADA Group, jedna z předních společností v oblasti luxusních výrobků, představuje originální
obchodní model, který úspěšně kombinuje industrializované výrobní procesy s precizním řemeslným
provedením a dokonalými rukodělnými výrobky.
Cestou k nekompromisní kvalitě, což je klíčová hodnota značky Prada, je důraz na dodržování
nejvyšších standardů a péče věnovaná sebemenšímu detailu v každé fázi výrobního procesu. Prada
vnímá kvalitu jako výchozí bod, nikoli jako kýžený výsledek.
Společnost, kterou založil v roce 1913 v Miláně Mario Prada, se v průběhu let ustavičně vyvíjela a
držela se strategie přímé kontroly nad všemi fázemi výrobního cyklu: návrh, plánování, výroba,
distribuce, prodej a komunikace. Zásadní roli v růstu značky Prada hraje neustálá optimalizace
efektivity výrobního procesu, rozšiřování sortimentu výrobků s vyšší marží a systematické pokrytí
oblastí s vyšší mírou růstu za využití inovativních distribučních kanálů.
Kolekce Prada a Miu Miu čerpají inspiraci z kreativity svých zakladatelů a již dlouho jsou ve světě
uznávané coby přední tvůrci stylu. Inovace, s nimiž od roku 1978 přicházejí Miuccia Prada a Patrizio
Bertelli, výrazně ovlivnili vnímaní pojmu klasicismus v posledních desetiletích. Prada představuje
především nepřetržité inovace – přitom však plně respektuje historii značky –, nezaměnitelný styl a
sofistikovanou eleganci s výraznou identitou, která vždy předvídala a často udávala trendy ve všech
oblastech. Na druhou stranu Miu Miu, je druhou duší Miuccii Prada, značka, již ocení zejména
klientela, které se líbí uvolněnost a pohodlí a kterou lákají sofistikované nové trendy. Do PRADA
Group dále patří značka 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 many international awards awarded to Miuccia Prada confirm her status as one of the most
influential people in the world of contemporary style and culture. The honours gained include the
CDFA International Award for Accessories in 1993, the VH1 Music and Fashion Award in 1995 and
again in 1998, the Premio Leonardo Qualitŕ Italia in 1998, her Honorary Doctorate from London’s
Royal College of Art in 2000, the CFDA International Award in 2004, the appointment as Officer of
the Ordre des Arts et des Lettres received from the French Minister of Culture in 2006 and the
acknowledgement by the Hammer Museum for her key role played as a driving force in international
design and culture, in 2007. In 2005 Miuccia Prada was also included in Time Magazine’s list of the
100 most influential people in the world, for having “provoked and influenced (fashion) for years with
her eccentric and highly personal sensitivity”. The same year Vogue America listed her among the
“magnificent seven” of the world’s fashion industry. In 2006, ‘Time’ magazine ranked Miuccia Prada
and Patrizio Bertelli among the 100 most influential couples in the world.
Manufacturing is concentrated in 16 plants: 14 in Italy and 2 (Church’s) in Great Britain. 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 distribution of Prada products has always been characterised by innovative selling concepts. The
most recent development in this approach is represented by the Prada Epicenters of New York, Tokyo
and Los Angeles, which arose from the desire to redefine the concept of shopping in an innovative and
experimental way through the collaboration of world-class architects Herzog & de Meuron and Rem
Koolhaas, winners of the Pritzker Prize, architecture’s most prestigious award.
Towards the end of the ‘90s, PRADA Group began implementing a selective expansion policy in other
product catergories through brand acquisition and licensing or joint venture agreements in new market
sectors. The Group currently operates in the eyewear sector through a licensing agreement with
Luxottica Group, and in the cosmetics field through its joint venture with the Puig Beauty & Fashion
Group.
The Parent Company PRADA spa reported consolidated revenues amounting to 1,661 million Euros in
2007, an 18.8% growth compared with 2006 at constant exchange rates and same consolidation area,
and the net profit totalled 127 million Euros (+65.8% compared with the previous year). These results
PRADA Group
confirm the validity of the choices adopted by the Group in recent years, with the development of the
retail network, restructuring the business and optimising every phase of the value chain.
Group revenues for leather goods and accessories increased their impact reaching 40% of total sales,
while clothing represented approximately 31% and footwear represented 28%. Italy generated 25% of
total revenues, whereas the rest of Europe (excluding Italy) accounted for 26%, North America 20%,
Japan 10% and Asia-Pacific accounted for 16%.
Revenues for the Prada brand alone reached 1,343 million Euros, with a well-balanced geographical
presence on all the key world markets.
The development of the Miu Miu brand continued during 2006, closing the year with increased sales
exceeding 43% (at constant exchange rates), in particular, thanks to the significant increase in achieved
in the Asia-Pacific area which increased revenues to 233 million Euros.
Car Shoe confirms the two-figure growth trend already reported in previous years, achieving sales
amounting to 25.8 million Euros. Church’s achieve revenues totalling 63.4 million Euros in 2007. At
July 31, 2007 PRADA Group has more than 7,200 employees, manages 220 stores, and has a presence
in 78 countries around the world.
November 2008
PRADA Group
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-to-wear and
footwear - coordinated centrally from the Terranuova Bracciolini offices in Tuscany. The production is
concentrated in 14 plants located in various Regions throughout Italy and also work with
approximately 540 external suppliers. Two other plants, located in Northampton and in Desborough,
Great Britain, are 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 knowhow
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, described in greater detail below, are concentrated entirely
within PRADA spa 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’ętre and still motivates their workforce.
Logistics
Logistic services for the distribution of finished products are organised over 6 central warehouse
facilities, including 4 in Italy and 2 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 16 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.
November 2008
PRADA Group
Production centres
PRADA Group’s 16 production plants, subdivided according to product sector, are:
Bags and accessories
 Piancastagnaio (SI): created in 1998 following the acquisition of a small workshop found on
Mount Amiata. The current facility, a modern building which covers approximately 2,900 square
meters, is located in an area which provides a stable source of manpower viewed as one of the most
qualified in Italy. The plant is comprised of production units, as well as CAD modeling, prototyping,
cutting and assembly departments. Professional training courses are also held at Pancastagnaio in order
to maintain the company’s know-how. The plant has 53 employees, who also coordinate the network
of outsourced manufacturers. The total output reaches more than 230,000 leather items each year.
 Scandicci (FI): is located in a very traditional area near Florence known as having one of the
highest productivity levels in Tuscany and where there is a consolidated tradition in the manufacture of
leather goods. One of the distinguishing features of this facility is the high tech equipment used to cut
hides which includes a computerized contour cutting machine with a vibrating blade. The plant has a
department dedicated to the preparation and realization of samples, prototypes and CAD models.
Thanks to the partnership with the Scuola di Alta Pelletteria di S. Colombano (S. Colombano School of
Advanced Leatherworks), Prada Scandicci also has an important role in the training of specialized
personnel (pattern makers and prototypists). The facility covers an area of 2,700 square meters, has 70
employees as well as a network of external suppliers. It has an output of approximately 80,000 bags
per year.
 Arezzo: formerly used for the manufacture of ”Sir Robert”, one of the first companies founded by
Patrizio Bertelli in 1973, this facility is specialized in the manufacture of belts, bags and luggage. The
plant covers an area of 2,800 square meters, has 44 employees, as well as a network of external
manufacturers to whom it supplies all the materials and patterns necessary for production. It has an
output of almost 380,000 pieces per year.
Ready-to-wear
 Fucecchio (FI) – Santacroce srl: an historic, specialized supplier of leather garments, the company
was acquired in 2001 and subsequently became the production and planning hub of this product
segment for the Group’s brands. Completely reorganized and upgraded, it now has a new production
facility with an easily recognized architectural style (designed by the architect Roberto Baciocchi)
which covers 4,400 square meters and which employs a staff of 81. The yearly output, equal to
approximately 40,000 leather garments, is achieved thanks also to a network of traditional, master
artisans from the local area who work in outsourcing.
 Montone (PG): specialized in men’s trousers, the plant has a yearly production capacity of 63,000
pairs of trousers thanks to the highly qualified workforce of 50 employees. The recently remodeled
facility covers a surface area of 2,900 square meters.
 Cittŕ di Castello (PG): this plant, dedicated exclusively to the manufacture and design of Prada
Uomo shirts, has a production capacity of 150,000 shirts per year, almost half of which are produced
internally thanks to the use of sophisticated, avant-garde technology. In order to meet excess demand
the company also uses a network of outsourced manufacturers to which it provides ready cut materials
for subsequent assembly and pressing. The plant covers an area of 2,200 square meters and has 58
employees.
 Arezzo: one of the centers involved in the manufacture of Prada Donna jackets, this 2,200 square
meter plant is equipped to cover all the typical production phases of women’s jackets, from the
assembly process, combining the most modern technologies with completely manual activities,
through to the pressing of the finished garment. The plant has a yearly output of approximately 23,000
jackets and has 83 employees.
PRADA Group
 Torgiano (PG): this is the Group’s knitwear company which is located in a region where the
knitwear industry is part of a deeply rooted tradition and where a network of outsourced manufacturers
and small workshops that produces handmade garments, with which the company works, still survives.
The plant covers an area of 2,600 square meters and has an installed base with state-ofthe-art
equipment capable of processing all the main yarns used in the production of knitwear. The majority of
the knitwear for the Group’s brands is produced in this facility (approximately 200,000 garments per
year) which has 50 highly specialized employees who are also involved in experimental activities
linked to the new collections.
Footwear
 Levanella (AR) – formerly Lamos srl: this is the main factory of a network which includes three
more facilities (in Levane and San Giovanni Valdarno, both near Arezzo, and Dolo, near Venice). The
plant, which covers an area of 6,400 square meters, was designed by the architect Guido Canali and is
considered a ground-breaking project due not only to the way in which it was conceived and its
structure, but also to the way in which the production cycle is organized and managed. Together the
four facilities employ a staff of 327 and manufacture approximately 500,000 pairs of shoes each year.
 Montegranaro (AP) – Artisan Shoes srl: already a Group supplier of classic men’s shoes, the
company, located in the hills of the Marche region, became part of Gruppo PRADA in 1996 when it
was completely reorganized and restructured and when substantial investments were made in all
sectors. The restructuring projects included the construction of a new 7,000 square meter, avantgarde,
plant which was also designed by the architect Guido Canali and which received the 2006 ANCEINARC prize for the best architectural work realized in Italy between 2001-2006. The plant quickly
became one of the most important classic footwear factories in the region. In 2001, in order to meet
increasing demand, a 2,500 square meter plant was also acquired in Civitanova Marche (MC) for the
direct production of sports shoes. Artisans Shoes employs a staff of 182 in its two plants and directly
produces 230,000 pairs of shoes each year.
 Northampton and Desborough (the United Kingdom) - Church’s: these are the two plants
dedicated to the manufacture of men’s footwear. The first, inaugurated in 1957, has a production
surface area of 13,500 square meters; the second, acquired by Church’s in 1967, covers an area of
approximately 3,000 square meters. The two plants have approximately 460 employees and
manufacture a total of more than 210,000 pairs of shoes each year.
November 2008
PRADA Group
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 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 used by the PRADA Group are 90% Italian and 10% European.
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 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.
PRADA Group
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.
The fabric suppliers of the PRADA Group are 80% Italian; the remaining 20% is equally split between
Japan and Europe.
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
innovarive 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.
November 2008
PRADA Group
PRADA Group retail distribution channels
Prada, Miu Miu, Church’s and Car Shoe products are sold through two distribution channels:
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the retail channel, represented by the single-brand stores (including the three Epicentres) directly
operated by the company, which currently account for approximately 52% of sales;
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the independent channel of multi-brand stores, department stores and franchises (so-called
wholesale).
This distribution solution enables the Group to have a presence in more than 2,500 of the most
exclusive points-of-sale which are either single-brand or multi-brand worldwide and to sell its products
in 78 countries.
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 – which totalled 220 at 31 July 2008, 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.
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.
November 2008
PRADA Group
Licences and joint ventures
Expansion into new product sectors is a key element in PRADA Group’s growth strategy. This has led
to collaboration with companies with outstanding know-how, well established in their respective
sectors, and the creation of joint ventures or licensing agreements for developing new product
categories.
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, 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, the first Prada perfume for women was created. Greeted with unanimous
critical and public acclaim, Prada perfume has enjoyed encouraging commercial success in all markets
where it has been presented. Prada presented Tendre in 2006, a new interpretation of the classic Amber
scent, and its first men’s fragrance, created for a gentleman drawn to and inspired by uniqueness,
quality, and non-conformist elegance, a synthesis of the values which express the Prada universe. 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. In 2008
Prada presented Infusion d’Homme, inspired by Infusion d’Iris.
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 keybord and new enhanced technological features.
November 2008
PRADA Group
THE PRADA GROUP’S FIGURES (AT JULY 31, 2008)
4
the number of brands: Prada, Miu Miu, Church’s and Car Shoe.
16
the number of production plants, 14 in Italy and 2 (Church’s) in Great Britain.
78
the number of countries where Prada products are sold.
220
the number of directly-operated stores.
1,300
the number of direct employees in Italy in manufacturing.
3,669
the number of direct employees in Italy.
7,225
the total number of direct employees worldwide.
15,000
approximate number of persons employed indirectly in Italy.
2,000,000
square metres of hides used in one year.
4,000,000
metres of fabric used in one year.
1.661
billion turnover in 2007 in Euros.