On Saturday, April 12th, as part of the Morning Program of Radio Television of Serbia, our director and founder Miljan Premović was a guest.
Parada bought Versace. The main question was how much does this affect the luxury brand market?
Summary of what Miljan Premović said: Prada and Versace’s annual global market revenue is $6.5 billion, but Prada alone generates $5 billion. That’s impressive, but within the Louis Vuitton group of brands (LVMB), that revenue is $85 billion.
It is certainly expected that the Versace brand will benefit from the developed infrastructure and system built by the Prada brand, and that Prada will gain a serious brand in its portfolio. However, it seems that this will not be enough to raise the value of “made in Italy” compared to the value of “made in France” luxury.
The Louis Vuitton group does not have sub-brands that tarnish its name, unlike the Italian brands. Moreover, Louis Vuitton prefers to destroy products that it does not sell, rather than give them away at discounts or promotions.
