During its Capital Markets Day on November 18, Prada Group announced its plans to accelerate sales in the third quarter of 2021 compared to 2019. The luxury Italian company reported an impressive 18% growth during this period, fueled by its success in the American market and online sales, which saw a staggering 400% increase in Q3.
To sustain this momentum and adapt to the evolving luxury market, Prada Group is doubling down on its digitalization strategy. Following the establishment of the Aura blockchain consortium a few months ago, the company aims to generate 15% of its revenue through digital channels. While no specific timeline has been provided, Prada Group is fully committed to the transition to e-commerce and plans to reduce its reliance on wholesale while increasing retail sales by 30 to 40%. This shift towards physical consumption aligns with the company’s vision to refocus its brand image.
Patrizio Bertelli, CEO of Prada SpA, emphasized the need for the luxury industry to evolve in line with cultural and societal changes. Bertelli stated, “Our fluid dialogues and perspectives constantly reinterpret luxury. By being relevant, sustainable, and impactful, we will stimulate long-term growth.” In line with this commitment, Prada Group has set an ambitious revenue target of €4.5 billion in the medium term, nearly double the results recorded in 2020.
Prada Group also demonstrated its dedication to sustainability by implementing a Net-Zero Climate strategy. The company has added two environmental, social, and governance (ESG) experts to its board of directors: Pamela Culpepper, Founding Member of the consultancy firm Have Her Back, and Anna Maria Rugarli, Vice President of Sustainable Development at Japan Tobacco International. Together with Lorenzo Bertelli, Head of Corporate Social Responsibility at Prada, they will form a new ESG Committee aimed at improving the company’s practices.
As Prada Group continues to drive sales growth and pursue its ambitious revenue target, the company’s commitment to digitalization and sustainability will play crucial roles in its strategy. The appointment of ESG experts to the board highlights Prada’s dedication to responsible business practices and its recognition of the importance of sustainability in the luxury sector.
Useful links:
1. Prada Group Sustainability
2. Prada Group Corporate Website
