overview

“Having one of the best known and most respected international brands, with undisputed leadership in design and innovation, means we have to make choices in the pursuit of growth that privilege the preservation of the cultural and stylistic fundamentals that our brand identity is based on”.

 

Patrizio Bertelli

8 Sept 2017 -  Prada Group H1 2017 Results

Key Figures 31 January 2017
3,184

€M revenues

12,579

Employees

620

DOS

70

Countries

Key Highlights
Profit & Loss
NET SALES H1 2017*

    *excluding royalties

    Direct Operated Stores
    H1 2017
    share price and shareholding structure
    08 aug 2017 - 4:08 am
    27,15 HKD +1,88%
    integrated VALUE CHAIN

    One of key success factors of the Prada Group is the integrated management of the whole production, the direct control of the strategic phases - from the creation and development of the product, to orders, supply, main processes and distribution – and the ability to innovate in all stages. 

    This approach has allowed the Group to translate avant-garde concepts into innovative exclusive products, to rapidly initiate large industrial productions, distribute products in exclusive locations through a top-level service in order to effectively satisfying customers’ requests and maintaining strict control over quality standards.

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    La catena del valore

    The teams of designers of each brand of the Group are composed of talents boasting qualified professional and training background. Driven by their intellectual curiosity and creative sensitivity, they constantly seek new solutions to be translated into products able to define - and often anticipate – new trends. Experience and dialectics are the essential components of the design content that distinguishes every product which is developed experimenting the use of new materials and manufacturing techniques.

    The Groups’ brands operating in the fashion industry present their new collections through fashion shows and events held at show rooms in order to allow merchandisers and buyers from all over the world to know their new products. Sharing the processes that led to the creation of the collections and their interpretation, filtered through the demands of each market, enable costumers to access exclusive and quality content that characterize every product of the Group.

    Selecting the right suppliers is fundamental for achieving the highest quality standards. The Group has always relied on the best suppliers of raw materials, , in their own right leaders and reference in their sectors.  In most cases, these are long-term relationships, initiated following a rigorous selection process, whose strict parameters are intended to ensure the highest standards of technical, economic and ethical reliability. 

    During the financial year ended January 31, 2017, the Prada Group purchased raw materials from about 500 suppliers, of which 81% were Italian and 10% from the European Union. The Group has been collaborating with 57% of them for over 10 years and with 19% of them for a period between 5 and 10 years.

    Raw materials – leather, fabrics and yarns - are an essential component of the quality of the product, thus representing a vital interest for the Group. 100% of hides come with a certificate of origin a data sheet guaranteeing quality and compliance with standards, and certification regarding the parameters stated on the Group's Restricted Substances List (RSL). Furthermore, the Group strictly complies with local and international regulations on on the procurement, importation, use and exportation of raw materials, such as the Convention on International Trade in Endangered Species (CITES).

    The Prada Group wants to set an example and serve as a catalyst for qualitative excellence as well as the promotion of a culture and modus operandi that tend to higher ethical models. In its relationship with suppliers, the Prada Group promotes and supports the respect for human rights and existing international laws concerning child and forced labour, regulations on workers’ health, safety and well being. 

    Besides encouraging social sensibility, it promotes knowledge of existing legislation and the adoption of the main environmental, social and quality certification, overseeing their application.

    The Group, thus, requires its suppliers to adopt responsible behaviour by undersigning its Code of Ethics, which establishes the mandatory principles on employees’ rights, working conditions, equal opportunities, freedom of association, health insurance and protection of the environment in the procurement of materials and the production activities.

    A system of procedures defines the ethical, technical and economic requirements that all the suppliers of the Group shall meet for the beginning and the continuation of a partnership with the Group. Specifically for ethical issues, documentation and certification provided by partners shall guarantee compliance with the law on remuneration, social security, taxation, health and safety, environment, privacy and governance model.

    This information is subject to periodic updates and systematic checks by the Prada Group in order to ensure veracity and consistency.

    Qualitative excellence, health and safety of customers are the focus of Prada Group’s manufacturing processes. Raw materials and finished products undergo the most stringent quality control conducted by a department comprising 290 technicians with at least 10 years of experience, who regularly visit production sites of suppliers of raw material and independent contractors to evaluate the processes, the manufacturing quality and the general working conditions.

    In order to achieve products that meet homogenous qualitative excellence standards, compliant with the various applicable laws in the over 70 countries in which they are distributed and sold, the Group has put in place specific measures, such as the introduction of an Industrial Compliance Committee (since 2010). Its aim is to ensure the operational application of national and international regulations on the nature and proof of origin of raw materials, creation of the finished product, and consumer health and safety.

    The Group has also introduced a Restricted Substances List (RSL) aimed to set the limits for chemical substances present in its products, which has been harmonised in 2016 according to the most stringent parameters set out in the “Guidelines on eco-toxicological requirements for articles of clothing, leather goods, footwear and accessories” of National Chamber for Italian Fashion (i.e. proactive approach).

    The products of the Prada Group are manufactured in the 18 directly owned production sites, and through a wide network of independent contractors which are craft artisan workshops with extensive experience and a strong sense of tradition. Here, accompanied by qualified Group’s technicians, they produce samples and are involved in the production, starting from previously selected raw materials supplied by the Group together with all the technical specifications. 

    During the financial year ended January 31, 2017, the Prada Group has collaborated with about 400 manufacturing suppliers, 79% of which are Italian and 10% from the European Union. 38% of the suppliers have been collaborating with the Group for more than 10 years and 25% for 5 to 10 years.

    The Group-owned production sites embody the highest expression of the manufacturing tradition of the Prada Group, as they harmonise the ability of preserving artisanal knowhow with cutting-edge industrial processes, geared to achieve and respect the quality and excellence of the production.

    The online and offline retail network undergoes incessant research aimed at increasing usability for customers, effectiveness of product display and conveyance of the identity of every collection of the brands.

    Furthermore, stores transcend their primary selling function, serving also as an important means of communication and customer assistance. They consistently communicate the image of each brand and allow a continuous dialogue as well as providing services that safeguard the products’ quality and durability over time.

    In order to achieve an effective control over a product and a direct relationship with customers, the Prada Group invests in the retail channel and conducts a strict selection of independent retailers based on stringent quality criteria that ensure the compliance with the Group’s reference standards. 

    During the fiscal year 2016, the Prada Group has completed 84% of its sales in the 620 directly-operated stores.

    DISCOVER MORE
    December 2017
    Prada launches new e-Commerce platform in China
    December 2017
    Prada unveils a new concept store in Miami
    November 2017
    Prada Spa admitted to the Cooperative Compliance Regime with the Italian Tax Authority
    November 2017
    Prada opens in Brussels
    November 2017
    Prada, Miu Miu and Church’s open in La Rinascente Rome
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