Italian luxury group Prada is making strategic moves to further solidify its growth and success. After achieving positive results for two consecutive years, the brand is now embarking on an industrial investment plan to expand its market presence. In 2022, Prada experienced global growth, with sales reaching €4.2 billion, reflecting a significant increase of 21% compared to the previous year. The brand saw particular progress in various sales areas, including a 19% increase in leather goods, a 27% increase in ready-to-wear, and a 29% increase in shoes. Building on this momentum, Prada aims to surpass expectations and continue its upward trajectory in the coming years.
To meet its goals, Prada has announced a recruitment plan focused on strengthening the manufacturing capacity of its Italian factories and preserving their craftsmanship. The brand intends to prioritize in-house production rather than outsourcing, making it vital to retain and expand its factories. As part of this strategy, Prada is investing €60 million this year, with a significant portion dedicated to industrial development. The investment will primarily focus on optimizing factory equipment and recruitment.
Aside from its eponymous brand, Prada also owns several other luxury labels, including Miu Miu, Church’s, Car Shoe, Pasticceria Marchesi, and Luna Rossa. The group aims to significantly increase production across these brands to maintain positive results. This includes various changes within Italian workshops. For example, Prada plans to double the size of its Torgiano factory in Umbria, which produces sweaters and knitwear, reaching an impressive area of 9,000 square meters. Additionally, the Levane production center in Tuscany, which specializes in shoes, will be equipped with new production automation. Prada is also focusing on modernizing its French tannery in Limoges, specifically in water treatment. To accomplish these expansion plans, the group will be hiring 400 new employees.
By making continuous investments, particularly in its production chain, Prada aims to sustain its growth and success. Additionally, rumors suggest that the brand may be preparing for its entry into the Milan Stock Exchange after being listed in Hong Kong over a decade ago. To position itself for future success, Prada is focusing on new technologies, production development, and implementing a sustainable development strategy. These moves indicate that the Italian luxury group is well-positioned to continue its upward trajectory and secure its place as a leader in the industry.
Useful links:
1. Prada Official Website
2. Business of Fashion
