Prada heir Lorenzo Bertelli has said he would consider making acquisitions of his 110-year-old brand.
“We have been and always will be open to considering opportunities,” Prada’s second heir, behind founder Mario Prada’s granddaughter, recently told Bloomberg while answering questions about the future of a rival.
The 35-year-old declined to comment, as Giorgio Armani, 90, drew attention a few weeks ago by saying he is not ruling out the idea of eventually selling his eponymous brand.
Both managed to remain independent and family-owned, while establishing themselves as some of the most influential brands in global fashion.
Bertelli, also Prada’s head of social responsibility, is the son of Prada’s majority owners, Miuccia Prada, and her husband, Patrizio Bertelli, who serve as co-chief executives.
Prada heir Lorenzo Bertelli said Tuesday he would consider making acquisitions of his 110-year-old brand.
“We have been and always will be open to considering opportunities,” Prada’s second heir, behind founder Mario Prada’s granddaughter, recently told Bloomberg while answering questions about the future of a rival.
By contrast, Armani owner Armani told Bloomberg last month that, while he doubted, “the independence of large groups could still be a driving value for the Armani Group in the future, but [he doesn’t] feel [he] I can’t rule anything out.
That came from the second-richest person in Italy, after the heir to the also family-owned Nutella empire, Giovanni Ferrero, 59. He has accumulated some $6.6 billion in wealth over the course of 50 years.
His company is still doing well, raking in approximately $2.6 billion in revenue in 2022.
That said, the CEO has long ruled out retirement talk, remaining silent on the topic despite widespread interest.
A succession plan would see the brand he co-founded in 1975 likely handed over to his sister or three other family members who work in the business, as well as his long-time collaborator Pantaleo Dell’Orco.
With no children to pass it on to, there has been speculation about the long-term future of Armani’s impressive empire, as is the case with the world’s largest, LVMH.
Like Prada, the French fashion brand is also family-owned and still controlled by 75-year-old president and CEO Bernard Arnault.
Four of his five children have seats on LVMH’s board, and each of them is in the running to take the reins when he steps down.
Bertelli, also Prada’s head of social responsibility, is the son of Prada’s majority owners, Miuccia Prada, and her husband, Patrizio Bertelli, who serve as co-chief executives.
Miuccia, 74, is the granddaughter of Mario Prada, meaning the business is still family-owned after more than a century.
Candidates would include the Italian brand Armani, founded almost fifty years ago by Giorgio Armani (pictured in Rome in 2004).
However, family-owned fashion houses are not known for their transparency, especially when it comes to succession planning.
And in an industry dominated by luxury conglomerates, there is speculation about whether Armani will be able to do the same.
While there are no immediate plans for Armani to relinquish control, he said he is considering all options, including an acquisition.
That said, Armani’s CEO succession plan has not been made public and is complicated by the presence of several capable lieutenants hidden within the company’s management.
As for Prada, the Bertellis still control about 80 percent of the company, after reporting strong profit results in 2023 despite factors such as inflation affecting the luxury fashion industry.
On Tuesday, Lorenzo said he still plans to shape and shape his future as the forces influencing luxury continue to surface, prompting him and others to adapt.
But Armani, however, seems less confident in that approach, with its founder telling Bloomberg last month that while it may help grow the brand, it may lead to a change in its values and style.
“At the moment I do not foresee an acquisition by a large luxury conglomerate,” he told the publication. “Listing is something we haven’t discussed yet, but it is an option that can be considered, hopefully, in the distant future.”
His rival Armani, 90, raised eyebrows a few weeks ago when he said he did not rule out the idea of eventually selling his family fashion brand.
The Bertellis still control about 80 percent of the company, after reporting strong profit results in 2023 despite factors such as inflation affecting the luxury fashion industry.
Meanwhile, many others, such as Berluti and Gucci, have been acquired by conglomerates such as France’s LVMH and Kering, both family-owned.
In 2001, Prada acquired majority stakes in brands such as Fendi, before selling them to offset debts in 2005.
Six years later, in 2011, Prada went public on the Hong Kong Stock Exchange, raising billions in its initial public offering.
In the following decade, Prada focused more on e-commerce and digital marketing, adaptations in which Armani has not been as successful.
In 2020, the company has continued to shift its focus towards sustainable fashion, introducing eco-friendly lines and sustainability goals.
Other changes from tradition have included an emphasis on innovation and global expansion, entering markets such as Asia, which are experiencing a luxury boom as mass retailers struggle.
Japan has become an unlikely candidate for the world’s strongest luxury markets, as a weaker yen attracted bargain-hunting tourists and domestic demand remained strong.
In 2020, the company has continued to shift its focus towards sustainable fashion, introducing eco-friendly lines and sustainability goals. Other changes from tradition have included an emphasis on innovation and global expansion, entering markets like Asia that are booming as mass retailers struggle. In the photo, Prada shoppers in Hong Kong.
Strong profits also seen by LVMH and Louis Vuitton were supported by growth in Japan.
Luxury sales across Asia also held up, defying the cyclical slowdown affecting the entire sector as Chinese buyers hold back and growth slows in other key markets.
This has affected companies like Armani, which had a turnover of $2.5 billion last year.
Armani, still CEO of his company at 90, first acknowledged the possibility of an acquisition last month, after repeatedly declining to comment on the matter the previous year.