Prada says it is open to acquiring more brands, as Italian luxury consolidates

At a factory opening that produces Prada knitwear, Lorenzo Bertelli, the group’s marketing director and son of Miuccia Prada and CEO husband Patrizio Bertelli, told reporters the company is open to M&A opportunities.

“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.

But as WWD reported, Italy’s luxury sector is operated by many family-run companies, who cannot compete against the luxury behemoth groups like LVMH and Kering. While sizeable companies of their own accord, businesses like Brunello Cucinelli, Salvatore Ferragamo, Prada, Moncler, and Ermenegildo Zegna remain independent and much smaller.

Innovation

French luxury groups typically allocate substantial resources to marketing and innovation, enabling them to create buzz around their brands and launch innovative products and experiences that resonate with consumers.

The breadth and strength of their brand portfolios give them a competitive edge in capturing market share across different regions and consumer segments. While Italian luxury houses like Prada, Moncler and Ferragamo also have strong brand recognition, they may not have the same level of global reach or brand diversity as their French counterparts.

Management structure

LVMH and Kering benefit from strong corporate governance structures and professional management teams that drive strategic decision-making and operational excellence. These companies have implemented robust management practices and corporate governance standards to ensure efficiency, transparency, and accountability. In contrast, some Italian luxury houses may face challenges related to governance issues, family ownership dynamics, or management succession.