In response to production and supply challenges, luxury fashion houses have been prioritizing investments in their supply chains to meet the growing demand for luxury goods. Prada and Ermenegildo Zegna, two renowned Italian brands, have recently exemplified this trend by collaborating and investing in Luigi Fedeli e Figlio, a highly regarded knitwear manufacturer.
Luigi Fedeli e Figlio, based in Monza, northeast of Milan, has specialized in producing exceptional knitwear and yarns since the 1930s. As a family-owned company, it has a strong reputation for its high-quality craftsmanship. The company also operates its own brand, Fedeli. By acquiring a minority stake in Luigi Fedeli e Figlio, Prada and Zegna are aiming to solidify their presence in the world of prestigious knitwear. While Luigi Fedeli, the CEO of the company, will maintain a majority stake of 70%, Prada and Zegna will each hold a 15% stake. The financial details of this investment have not been disclosed.
Patrizio Bertelli, the President of Prada Group, emphasized the strategic nature of this investment, stating, “This agreement represents a strategic investment to preserve the know-how and tradition of Italian excellence in fine yarn.” This aligns with Prada’s commitment to its production chains, as the group had previously announced a €60 million investment plan.
In recent times, numerous luxury groups and brands have publicly announced their investments in suppliers. An example of this is LVMH Métiers d’Art, which made a majority investment in the Italian tannery Nuti Ivo S.p.A. Similarly, some brands have chosen to engage in cross-investments. Just a few days prior to the Prada and Zegna collaboration, Chanel and Brunello Cucinelli confirmed their joint investment in a cashmere supplier.
These strategic investments reflect the luxury industry’s emphasis on securing and strengthening their supply chains to meet the rising demand for luxury goods. By partnering with renowned manufacturers and suppliers, brands like Prada and Zegna are not only preserving their heritage and craftsmanship but also enhancing their production capabilities. As the luxury market continues to evolve, such investments are becoming essential for maintaining a competitive edge in the industry.
Useful Links:
1. Prada Group – Sourcing and Production Chains
2. Ermenegildo Zegna – Artisanal Excellence
