Lorenzo Bertelli, the group’s marketing director and the son of Miuccia Prada and CEO husband Patrizio Bertelli, told reporters the company is open to M&A options during the opening of a facility that makes Prada knitwear.
“We have been and will always be open to considering opportunities,” Bertelli said at the Torgiano-based based factory. Prada has been investing in its supply chains for many years, focusing on near-shoring production to Italy to building a more agile, shorter and more transparent supply chain.
Numerous family-run businesses operate in Italy’s luxury market, but they are unable to compete with the industry’s titans, such as LVMH and Kering. Even though they have grown into huge corporations on their own, brands like Ermenegildo Zegna, Prada, Salvatore Ferragamo, Brunello Cucinelli, and Moncler are still independent and significantly smaller.
Typically, French luxury businesses devote a significant amount of resources to marketing and innovation, which helps them generate talk about their brands and introduce cutting-edge experiences and products that appeal to consumers.
Their brand portfolios’ power and breadth offer them a competitive advantage in gaining market dominance across many geographies and customer categories. It’s possible that Italian luxury brands, such as Prada, Moncler, and Ferragamo, don’t have the same amount of worldwide awareness or brand diversity as their French counterparts.
Robust corporate governance frameworks and skilled management teams that promote operational excellence and strategic decision-making are advantageous to LVMH and Kering. To guarantee effectiveness, accountability, and openness, these businesses have put strong corporate governance rules and management practices into place. On the other hand, family ownership dynamics, management succession, and governance concerns could pose difficulties for certain Italian luxury properties.
