PRADA. Strategic Recommendations

PRADA (http://www.prada.com/) is luxury fashion company founded in 1913 in Milan (Italy). It's has been managed during this time by Prada - Bertelli Family and in June 2011 has published an IPO in HK market raising US$2.14 billion. Prada said they will invest in cut part of his debt, international expansion (mostly in APAC) and redesign is current stores in a 18months plan. (http://www.reuters.com/article/2011/06/24/us-prada-idUSTRE75N09P20110624)

PRADA is sophisticated, exclusive and alternative. Vast relationship with arts in his flagships stores, cultural innitiatives or specific collaborations such as Po Koolhas in Seul 2009 or Elmgreen&Dragset in Texas 2005. All of these propositions coverge in PRADA Foundation, which is a reference for the company values.

PRADA has women and men fashion, ready-to-wear, leather goods, shoes, perfumes, eyewear and a sort of useless accesories to banalizing the brand

PRADA is a well-known brand and extremly well-positioned in Apac. But is dramatically loosing revenues in Europe and NorthAmerica. They are aware of changes and we expect some strategic decisions in this sense.

OUR recommendation for PRADA is to diversify and growth and we suggest two specific actions:
1.- Joint venture with Nespresso (http://www.nespresso.com/)
2.- Takeover Burberry as target company (www.burberry.com)

NESPRESSO could contribute with cashflow and it's also a lever to promote european-way coffee tasting in Asia.

BURBERRY has reemerge and it's a very attractive acquisition for many companies. For PRADA could be and excellent opportunity to add british value to his company and leveraging this knowledge gain legitimacy in asian countries

LuxuryCompanies

June 2011