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Since Mario Prada opened a small store in Galleria Vittorio Emanuele II in Milan selling leather bags, beauty cases and accessories, the Prada brand has become synonymous with style and elegance. In the space of less than 100 years, the company has been transformed from a family-run, one-store operation into one of the world’s leading producers and retailers of luxury goods and haute couture.

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Prada has continually evolved its fashion lines to keep up with and often even set the latest fashion trends. Prada has also very successfully expanded its offering to include leather goods, footwear, eyewear, fragrances and ready-to-wear clothing for men and women.
The company has embarked on an ambitious program of global expansion, turning it from an exclusively Italian operation into a company that has stores on three continents. This has given the fashion house a strong foothold in several markets.
The company has successfully acquired and integrated the British men’s shoe brand Church’s and Italian shoe manufacturer Car Shoe into the Prada Group. Prada established the high fashion brand Miu Miu aimed at attracting a younger, more avant-garde female clientele.

Your key questions answered

* How has Prada used acquisitions to grow into a leading player in the gloabl luxury goods market?
* How successful has the company been in rivalling PPR and LVMH?

Table Of Contents

Prada Case Study: From Family-Owned Business to Global Luxury Goods Powerhouse
Prada's transformation into a global fashion powerhouse has been a gradual process
Prada has remained resilient during the global economic downturn
The diversified nature of Prada's operations is central to its ongoing success
1979 heralded the successful launch of new shoe and bag ranges
Following these successes, Prada pressed on with further product line expansion
Prada looked to establish itself as a major label in men's fashion
The company marked the millennium by launching eyewear and fragrance ranges
Prada's expansion has also been geographical
Prada has grown through a series of acquisitions and the establishment of sub-brands
Prada embarked on the acquisition trail with the buyout of Church's in 1999
The takeover of another shoe manufacturer followed in 2001
Not all of Prada's acquisitions have proved successful
Prada's investment in Fendi was also short-lived
The establishment of sub-brand Miu Miu has been a smash hit
Prada's product offering is reinforced by a targeted marketing campaign and strong brand positioning
Prada emphasizes its status as a desirable producer of high-quality goods
Prada utilizes targeted promotional material to woo customers
Prada has cultivated a reputation for class, style and elegance. This, coupled with effective marketing and brand positioning, has helped it grow into a luxury goods powerhouse
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