Unlikely as it may seem today, Prada used to be a seller of nylon rainwear in the 1970s. Having started life as an importer of English ‘animal goods’, the brand eventually picked up the epithet ‘luxury’ in the 1990s, thanks to its unique designs.
Specialising in tote bags, which it sold through deals with leading, high-end department stores, the brand built towards becoming the most desirable handbag brand in the 1990s. Building on this success, the company branched out into menswear and womenswear in the late 1990s and soon clothing accounted for 20% of the ‘luxury tote bag seller’s’ sales by the close of the decade.
Today, Prada runs the gamut of luxury segments. It specialises in leather handbags, travel accessories, shoes, ready-to-wear and other fashion accessories. Prada also licences its name and branding to Luxottica for eyewear and L’Oréal for fragrances and cosmetics.
After falling from fashion in the 2000s, the company has seen something of a renaissance since 2010, slowly becoming a sought-after brand once more. Sales in 2023 totalled $4.4bn, up considerably on 2019’s $2.8bn, while profits similarly climbed from $2bn to $3.5bn over the same period.
The company’s re-emergence in mainstream fashion has seen it acquire some unusual accolades. Its foray into mobile phones with LG Electronics in 2007 did, in fact, beat the iPhone to the first smartphone punch. The launch the same year of Prada Link watch, which could talk to the Prada phone via Bluetooth also presaged the smartwatch ecosystem that came to pass in the mainstream market during the early 2010s.
The company was also featured in the movie The Devil Wears Prada (2006), in which Prada wearing nightmare boss Meryl Streep earned an Oscar nomination. Fun fact: Vogue editor Anna Wintour, thought to be the inspiration behind Streep’s character in the movie, memorably wore Prada to the film’s 2006 premiere.
Prada is also adept at marketing. In 2014 the company launched the Pradasphere, an itinerant exhibition of artefacts and garments from the company’s archives, outlining its history and involvement in fashion, cinema, art, architecture and the Americas Cup yacht race, which it sponsors. Starting in Harrods the event moved round the world. In 2023 it set up again, this time in Shanghai between December 2023 and January 2024, with plans once more to take it round the world throughout the year.
This is one of nine company profiles on the RetailX Global Luxury 2024 report. There is also six short profiles.
The report examine the market in detail, looking at regional breakdown of sales, consumer behaviour, the channels and devices used to make purchases, sustainability and predictions of consumer change.
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