Prada has budgets for new acquisitions, also and above all for the supply chains because it has a programme to strengthen its production capacity from year to year. “We think that being able to give generational stability to many medium and small companies is our entrepreneurial role and also a minimum of responsibility”, said CEO Andrea Guerra, who was present with the group’s top management at the inauguration of the Torgiano (Perugia) site. But Prada does not disdain the idea of acquiring new brands, with the prospect of the Armani group on the horizon.
Prada has budget for new acquisitions
Future acquisitions will certainly involve parts of the supply chain. Because by aggregating small suppliers, the company can provide the necessary scalability and stability, Guerra explained. “There will be increasingly fierce competition here as well”, noted the CEO, referring to the operations carried out by other players in the sector, both Italian and foreign. For the industrial development of the Prada group, around EUR 60 million has been earmarked for 2024, excluding acquisitions, writes Corriere della Sera. While according to Fashion Network, the figure allocated is between EUR 70 and 80 million. The aim is to expand production capacity and know-how.
About Armani
“We have been and will always be open to considering opportunities”, said Lorenzo Bertelli. To what extent? Because the media speculate about the possibility of a merger with Armani in a few years’ time. At Prada, they don’t give anything away. “We cannot comment on matters that concern Armani”, Guerra replied to Fashion Network. “I don’t think Armani has said that he is ready to make certain moves. Armani is a piece of the country’s history, and I don’t think he is on the agenda today”.
Normalisation
“I think 2023 and 2024 are two years of normalisation”, Guerra said about the group’s performance. “There is not a concern about the Asian consumer. There are concerns about where this consumer spends his money. Before, he did not go outside his border. Today we see the Chinese coming back to Paris, Milan and elsewhere. In these 3, 6, 8 months, the Chinese consumer has moved to other places”.
Pictured left: Prada Galleria bag, right: Giorgio Armani loafers
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