Prada Group has recently announced the establishment of a new joint venture with SSI Group, a subsidiary of Stores Specialists. This collaboration, named ‘Prada Philippines’, will play a crucial role in strengthening Prada’s presence in the Philippines. The joint venture will involve an initial investment of PHP 16.6 million by SSI Group and PHP 25 million by Prada Group. Furthermore, the total investment in the joint venture is expected to reach PHP 152 million and PHP 228 million upon completion. Prada Group will hold a majority stake of 60% in Prada Philippines, while Stores Specialists will possess the remaining 40%. The joint venture is set to commence operations from the beginning of 2024.
The primary objective of this joint venture, as highlighted in a statement released by SSI Group, is to drive the growth of the Prada brand within the Philippines while also enhancing operational efficiencies. It signifies a shift from the traditional franchisee-franchisor relationship to a partnership between SSI Group and Prada Group. SSI Group, based in the Philippines, has been collaborating with Prada since 2013 and currently manages two Prada stores in the outskirts of Manila. Additionally, the company boasts an extensive portfolio, managing approximately one hundred brands, which includes luxury labels like Balenciaga, Boss, Bottega Veneta, Cartier, Loewe, and Alexander McQueen. Furthermore, it also represents mid-range players such as Gap, as well as Spanish groups Inditex and Tendam. With its strong presence in the retail market through over 550 points of sale, SSI Group has established itself as a major player in the industry.
Prada Group, renowned for its prestigious brands including Prada, Miu Miu, and Church’s, has experienced robust sales growth, particularly in the Asia-Pacific region. Throughout the first nine months of 2023, the group achieved a significant sales increase of 17% amounting to €3.344 billion, with 35% of its revenue generated in the Asia-Pacific region.
The joint venture between Prada Group and SSI Group is expected to yield substantial benefits and contribute to the expansion of the luxury fashion industry in the Philippines. With the combined expertise and resources of both companies, this partnership aims to capitalize on the immense market potential and meet the ever-growing demand for luxury brands in the region.
For more information on Prada Philippines and the partnership between Prada Group and SSI Group, please visit the following links:
