Lorenzo Bertelli, the eldest son and future leader of Prada, has confirmed his dedication to maintaining the autonomy of the family-owned luxury fashion group. In an interview, Bertelli emphasized his commitment to preserving the company’s independence once he takes over. Currently serving as Prada’s marketing chief, the 33-year-old has played a vital role in strengthening the brand’s digital business, aiming to achieve 15% of retail sales in the medium term, a significant increase from the pre-pandemic 2%.
During an investor presentation, Lorenzo’s father officially designated him as his successor, with a possible transition within three to four years. Patrizio Bertelli praised Lorenzo for his crucial contribution to the group’s turnaround efforts, which included eliminating discounts and reducing wholesale distribution. This strategy has proven successful, and Prada is now considered an attractive target for rival fashion groups.
Lorenzo Bertelli, like his father, firmly stated that the family-owned group, in which they hold an 80% stake, is not up for sale. When asked about his intentions to retain family ownership, he replied, “For me, absolutely yes.” He added that he does not see any other direction for Prada and that he hopes to lead the company for a long time, emphasizing the importance of maintaining independence.
While not ruling out potential acquisitions in the future, Bertelli asserted that there are currently no opportunities. However, he didn’t dismiss the idea of potential developments, saying, “tomorrow we do not know.” On the topic of selling Prada and its subsidiary brand Miu Miu on Amazon.com, Bertelli expressed doubt about the platform’s readiness for luxury brands. He mentioned a potential interest in joining a joint e-commerce venture, such as the collaboration between Richemont and Farfetch.
Looking ahead, Prada has set a medium-term goal of achieving a 20% operating profit margin, although this falls below the margins of competitors like Louis Vuitton and Gucci, as well as Prada’s own prime profitability margin of 27%. Bertelli acknowledged that reaching this level will take time but believes it is possible. He stressed the importance of setting realistic goals and striving for improvement rather than aiming excessively high and risking disappointment.
Useful links:
1. Prada’s Commitment to Independence
2. Prada’s Digital Strategy and Goal of 15% Retail Sales
