Bertelli on Prada, Lang and Sander future strategies

[tott]

What?!

It doesn't say so in the quote. But I wouldn't put it past Bertelli, he gives an impression of being quite ruthless and greedy. I'm really getting puzzled about the way Prada handles their bussinesses.

 

[Lena]

yes tott, of course the article doesnt mention China, but if one has in mind Prada's expandtion there (i think they've bought a factory or something) ...

does anyone has more on this issue?
i mean why should they downsize in Italy? where all traditional handcraft comes from?
maybe they are taking parts of their production elsewhere..

 

[helena]

maybe its just to make more profit lena

 

[AlexN]

i mean why should they downsize in Italy? where all traditional handcraft comes from?

Like Bertelli gives a **** about traditional handcraft...

I really think Prada Group will be going down the tubes bigtime within the next few years.

 

[Lena]

Like Bertelli gives a **** about traditional handcraft...

I really think Prada Group will be going down the tubes bigtime within the next few years.

correct
i even think you will prove right on the 'going down the tubes' remark

 

[PrinceOfCats]

If you sell your soul to the devil then don't expect him leave it untouched...

 

[Pastry]

Zing! Well Said!

Bravo.

 

[softgrey]

Lena,

Thanks for the article. It is really interesting for me to see the business side of a fashion house and the way in which a businessman thinks about fashion... even though a part of me hates to see it broken down so much to numbers, dollars, and cents.

I guess that most of the time all that I think of is the finished product from a given house, the interesting clothes, unique ideas, etc... but it interesting to know that perhaps BECAUSE of other considerations, some with which I wouldn't agree... those clothes can come about as they do and be as interesting as they are. What I mean is that, as Bertelli said, it is because of a large conglomerate that some smaller businesses were able to stay afloat. And, those large conglomerates become and stay large by making tough decisions based on the bottom line and what is going to make them larger... as opposed to a singular artistic vision come-what-may.

Or, in the case of Prada itself, it is because of the nylon bags and the sneakers (which many of us descry) that we can have some of the really interesting clothes that she sometimes produces from the main line or from Miu Miu. Without the financial freedom afforded from a successful accessories line, she probably couldn't take so many chances with the clothes line. For, like her or not, she doesn't just "play it safe" all the time. Just look at some of the collections from a few years ago... sleeveless, nylon halter vests for men, wool "double trousers" (I'm sure you saw them... they looked like one pair of pants worn on top of the other). I'm guessing that they probably sold 3 pair of those.

Of course, there is the converse argument, that because of their current financial constraints they are having to cut corners... But I still think that she has more of an ability to "play around" with ideas that she might have than some other large houses.

Look at Armani, for example. His business is almost entirely based on clothes, right? For this reason, he really can't take huge chances on a collection that may fail. Hence year after year of the same thing without much risk (all of which sell, predictably, like crazy).

Thanks again,
John

i thought this was a very good and insightful post...
welcome to the fashion spot john...
hope you'll keep posting...

 

[screenage]

I never got a welcome softgrey!

 

[Lena]

well, take it from me screenage
welcome to tFS

 

[screenage]

aw thankyou!

 

[rach2jlc]

yes tott, of course the article doesnt mention China, but if one has in mind Prada's expandtion there (i think they've bought a factory or something) ...

does anyone has more on this issue?
i mean why should they downsize in Italy? where all traditional handcraft comes from?
maybe they are taking parts of their production elsewhere..

There are some (authentic) items already that are made in China. I've seen some nylon Prada sport products (especially light jackets) made in China. I've also seen heavier nylon jackets and things made in Romania. I've not seen any of the mainline products made there yet, however.

But, it certainly makes me less anxious to spend $360 on aforementioned windbreaker when you know that they are paying so little to make it in a Chinese factory.

John

 

[Lena]

it's a steal isnt it?

 

[screenage]

It would be wonderful if Prada made fair trade fashion, and lots of money went back to the community

 

[Pastry]

rach2jlc, well-said! This brings up an interesting issue that haunts everyone...wearabilty. Obviously, the especially flambuoyant designs don't even get produced or at least towned down. I have always wondered how this works. Clearly, there is pressure from the CEO's, so how do the designers decide how much to experiment and where to stop. What does their creative freedom depend on, and how patient can the people at the top be?

 

[Lena]

voila.. all my suspisions come true hmmm
from just-style.com of today

Luxury goods group Prada Holding NV has revealed plans to expand further into China to take advantage of the fast pace of market growth there.

Prada, which presently operates 22 outlets there, says it is setting up its fourth global megastore in Shanghai.
China is the fastest growing of the world's top 10 economies, with its luxury market – which China entered eleven years ago - seeing growth of approximately 60 per cent annually.
*Prada has also announced that it may move some of its production from Italy to countries with cheaper production costs such as China, according to media reports.
Chairman and chief executive Patrizio Bertelli says that the fashion house is in the early stages of weighing up the potential advantages of outsourcing some of its manufacturing.

:S

 

[screenage]

These really big congolomerates are just evil, it's sad when one's occupation with money can destroy "design integrity"

 

[kit]

You would be REALLY surprised just how many of the clothes you wear , labelled ' Made in Italy ' are ACTUALLY made in China .

 

[Lena]

most italian production is made-in-china, thats a fact kit

 

[purechris]

I know a lot of it is really made there, but it just makes me so