Prada Second Generation Succession

Patrizio Bertelli, chief executive of Prada, an Italian luxury brand, announced on Friday that Prada will never sell. At the same time, his eldest son, Lorenzo Bertelli, is ready to take over the family business.

Of course, it takes time to become Prada's boss. Lorenzo joined the group's digital communications Code Promo Soufeel department last September. Before joining the family business, he was a WRC racer serving the Italian FWRT s.r.l. team. "Lorenzo has been preparing, and he waited until one day when he learned the skills and has the will to take over," Bertelli said. Recently, Antoine Arnault, the eldest son of Bernard Arnault, owner of LVMH Group, has just been appointed as Brand Communications and Image Director.

The second-generation “princes” of luxury brands are being appointed to be one of the most important businesses besides sales. The second generation of family companies holds the same emotional appeals and preferences as the younger generation of consumers, which will undoubtedly bring effective brand marketing. Accurate strategy.

But Bertell did not reveal when he and his wife, Miuccia Prada, were considering retirement.

Prada's new plant in Valvigna, Italy, opened on June 8

In the grand environment where luxury brands are catching up with young people, Prada is one of the few brands with relatively backward transition. The company still stays under the traditional family business model. The performance of the past few years can show that the business model and creative style of the founders are all dragging Prada to actively respond to market changes, of which the creative part is the most difficult area.

The 2018 Global Powers of Luxury Goods (2018) released by Deloitte in May this year announced the list of the top 100 luxury companies in the world in 2018 - France's LVMH ranks top of the list, while Melorra Coupons the Estée Lauder Group surpasses Switzerland. Richemont Group jumped to second place, while Prada Group fell to 19th place, 10th place was a sharp week, 13th place was Lao Fengxiang, and 20th place was Pandora.

Prada has experienced a three-year decline in profits. According to the latest data released by the Prada Group in March this year, sales and profits in 2017 had a decrease of 3.6% and 4.3% respectively, but sales in the two months of 2018 recorded an increase of 7.5%. This is largely due to the renewed growth in demand for the brand in the Chinese market. This year, Prada's share price has risen by approximately 40%. Patrizio Bertelli said in an interview in March this year that the situation in the opening up in 2018 was positive and he was confident in the performance of the Prada Group this year.

Handbags are the key to the recovery of Prada's performance, accounting for 60% of the company's overall revenue, with the remainder relying primarily on ready-to-wear and footwear. Bertelli believes that the best way for the brand to respond to trends is to have complete control of the manufacturer. In Prada's entire production base, the company has 35% of which 80% is located in Italy.

Like other luxury brands, Prada also tried to attract the millennial generation. This group of young people contributed nearly 60% of the performance, while China is the younger generation. Millennials have 400 million people in China, but only in the United States. 80 million.

At the beginning of March this year, Patrizio Bertelli said that the launch of the Group’s trendy “Cloudbust” sneakers was very successful, and that the new “Linea Rossa” sports series was coming soon. At the same time, Prada began to pay attention to online advertising and investment in e-commerce business. In December last year, Prada followed Dacoz Coupon Code the pace of luxury brands such as Louis Vuitton and Saint Laurent to open an online store in the Chinese market. Chiara Tosato, the digital director who joined the group for a year, said that the group will continue to achieve online sales growth at a double-digit rate. By 2020, the total sales of online sales will increase from the current 4-5% to 15%.

However, Bertelli's business brain Bertelli still retains the traditional part of the concept. A few days ago, Gucci had shown investors a video of robotic shoes, Bertelli said: “This production method does not meet his views on luxury goods. It may be implemented for sports shoes, but it does not apply to Make handbags."

The old and new within the family are faced with many unknowns. The resistance of the older son Lorenzo Bertelli to take over Prada is not only his lack of knowledge in the field of luxury management, but he may have to worry that Lorenzo's own interest is not in the family business.

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