The Prada Clean Up

[helena]

THE PRADA CLEAN UP

PRADA is expecting its profit growth to average 23.5 per cent per year for the next five years, it announced last week, with sales reaching over £1 billion by 2010. The company ceo, Patrizio Bertelli, who is married to Miuccia Prada, said that the increased growth would come as a result of a new focus on money-spinning core brands Prada and Miu Miu, along with the strong Azzedine Alaia and Car Shoe labels. He revealed that the money-losing brands Jil Sander and Helmut Lang, meanwhile, had been placed outside the umbrella of a new company known as Prada SpA Group that will take company forward. "Nonstrategic brands [Jil Sander and Helmut Lang, had been isolated] from the core group with a view to their subsequent disposal," he said. However, we needn't expect a sale of either any time soon, since Bertelli said he was committed to relaunching Sander under the creative direction of newcomer Raf Simons and added that he expected the label to be "profitable on an operational basis as early as next year". With Simons set to make his debut on the Sander catwalk in Milan in February, the label will be one of next season's most closely watched. Prada and Miu Miu, meanwhile, are expected to simply continue in the same vein. "The Prada and Miu Miu collections were met with overwhelming praise both by the press and the trade," Bertelli told WWD. "This praise is reflected in the strong orders we have received thus far this year. It is proof that our efforts on product design and development, productions efficiency, effectiveness of the distribution and communications are going in the right direction."

from vogue.co.uk

 

[Zazie]

I HATE this SOB.

 

[faust]

He revealed that the money-losing brands Jil Sander and Helmut Lang, meanwhile, had been placed outside the umbrella of a new company known as Prada SpA Group that will take company forward.

Still looking for that elusive IPO, Patrizio?

 

[Scott]

Okay I get it now. Lure the most sought-after individuals,try to turn them into puppets....they leave because they can't tolerate you're incessive need to control absolutely everything and now you've got yourself two brands you can turn into mere novelties for your own brand. How lovely. What a maggot,he is.

 

[ThisHollywoodLfe]

I obviously understand the needs for companies to turn higher percentage of profits, but to acquire Raf for the Jil Sander line and just make sub group is a bit ridiclous, theres so much talent going to waste, his styles may not completley appeal to the Prada crowd, but in mind hes a far better designer than Miuccia.

 

[softgrey]

Still looking for that elusive IPO, Patrizio?

yes...it would seem so...
this is just a paper shuffle...

cooking the books, if you will...

kind of amusing....

 

[Caffeine]

well, apparently they are just running a business, not fashion

 

[cablackmon]

Hmmmmmm. Mr. Bertelli has always been like this. Obviously he hasnt yet-- after all these years-- found that connect between fashion, and the more industrial side. I have to say, he is good when it comes to product design, placement, and advertising. His wife is absolutely wonderful the design end of it.But some of you are right, this is a very seedy way to get "big business."

 

[The Baron]

I could have sworn I've already read a report that Prada has agreed to sell off Helmut Lang to Dior. Is this an older article?

 

[Andro]

If Mr. & Mrs. Bertelli are already making such a profit with their own collections, then why do they still need Sander and Lang?

It's one thing to open up $50'000'000 million dollar stores in Tokyo and New York for PRADA, while

 

[yourbestfriend]

if theyre relaunching jil sander, whats going on with helmut?

 

[Andro]

If Mr. & Mrs. Bertelli are already making such a profit with their own collections, then why do they still need Sander and Lang?

It's one thing to open up $50'000'000 million dollar stores in Tokyo and New York for PRADA, while

Made a typo with my post... Here is my edit

If Mr. & Mrs. Bertelli are already making such a profit with their own collections, then why do they still need Sander and Lang?
It's one thing to open up $50'000'000 million dollar stores in Tokyo and New York for PRADA, while Sander and Lang suffer from quality control and losing their showrooms/production factories... But it's another thing to force them into early retirement and hand them off to a subsidary.
Although Bertelli may be making money, I know that Miuccia is the brains and driving force. Anyone can do what Bertelli is doing, probably even much better. Look at Tom Ford and Bernard Arnault, and how many more companies they used to run with a much better turn out... I believe it is too early for him to be speaking about profit. I mean Raf Simons hasn't produced even one collection so far by the Prada Group. it is ignorant and premature to be saying this when the sales haven't even been put for sale.
With this kind of thinking, he's sure to get his foot stuck in his mouth again. You never know what may happen in the future. Look how 911 changed his plans for PRADA's International Public Offering on the NYSE. Considering that there is a war right now, I think he'll be talking inflation if he doesn't respect the success and vision of others.

 

[Caffeine]

At the same time, he's got all those bankers for business ideas. Now he wants his book to look nice to be able to sell in a road show. In a pure business perspective, he is doing the right thing. But I hardly found what he did to Jil Sander and Helmut Lang ethical.

 

[softgrey]

I could have sworn I've already read a report that Prada has agreed to sell off Helmut Lang to Dior. Is this an older article?

baron..can YOU produce an article that says that?...
i have heard no such thing......


thanks...

 

[macchiom]

Although Bertelli may be making money, I know that Miuccia is the brains and driving force. Anyone can do what Bertelli is doing, probably even much better.

I highly doubt that. Don’t underestimate Bertelli. Prada would not be as big as it is today if it wasn’t because of him!

Look at Tom Ford and Bernard Arnault, and how many more companies they used to run with a much better turn out...

Perhaps it would be more reasonable to put Domenico de Sole’s name instead of Tom Ford in this context...

 

[macchiom]

I could have sworn I've already read a report that Prada has agreed to sell off Helmut Lang to Dior. Is this an older article?

I would also really appreciate a link to this.

Thanks

 

[The Baron]

baron..can YOU produce an article that says that?...
i have heard no such thing......


thanks...

Well, I've been trying my utmost to find it again via Google, but of course searching for anything that includes the words "Dior", "Prada" and "Helmut Lang" tends to make hundreds of commerce sites bubble to the top, so I haven't had much luck.

That's why I was asking...I'm hoping someone else will have seen the article and saved the link.

Or else, no one will recall such a thing and I'll just have to assume I dreamed it in some particularly vivid, realistic, and geeky dream about surfing online for fashion news.

 

[faust]

if theyre relaunching jil sander, whats going on with helmut?

nothing. they'll probably unload it to someone at a bargain price... and they better do it soon, before Helmut starts designing under a different label name...

 

[liberty33r1b]

it's really just about the business, isn't it?!

 

[The Baron]

Sometimes I get the impression that they think this approach to business is just another part of their aesthetic, that whole near-future efficiency atmosphere of living just ahead of the present moment. When you adopt that attitude, you tend to be very bottom line, no-BS about a lot of things.

Of course, the necessary consequence is that you lose the creative potential that comes from chaos and letting things evolve. Like a hook-and-ladder firetruck, the way you steer your business has an effect on how you steer your craft.

I've seen their clothing referred to as uniforms for the modern neo-fascist, and they certainly seem to have a certain "you're with us or against us" no-grey-area fascist attitude toward business.

They are what they are, I guess. I do worry about Raf - I hope he will be okay.