Marriage Prada and Versace is ‘Deal that changes Italian fashion sector forever’

« A deal that changes the Italian fashion sector forever, » headed the Turin newspaper La Stampa Thursday afternoon, when the news about Prada’s purchase of Versace was announced. For weeks it has already been speculated over the deal. First an amount of 1.5 billion euros was mentioned, but in the end Prada, the luxury house from Milan, paid 1.25 billion euros for the smaller rival Versace due to the turbulence on the financial market.

The acquisition reinforces the Italian position in the luxury market, and means competition for the French holdings LVMH and Kering. The price that Prada pays for Versace is a lot less than the approximately 2.15 billion dollars (1.9 billion euros), including the fact that the American group Capri Holdings (the former Michael Kors) had paid for Versace to the Versace family and the venture operator Blackstone in 2018.

The rumors about an acquisition swallow when Donatella Versace took a step aside in mid-March as creative director at Versace and was replaced by Dario Vitale, former design director of Miu Miu, which belongs to the Prada group. Donatella led Versace since the murder of her older brother Gianni in 1997 in Miami. The fashion designer, who turns 70 in May, remains ‘Chief Brand Ambassador’ of the brand.

An extra blow

In the Italian fashion world it was already thought that she accepted a different role at Versace, exactly to make this acquisition possible. After all, there is also a strong woman at the head of Prada, Miuccia Prada, who can not differ from Donatella Versace in a personality, style and fashion taste. Where fashion is and may pop at Versace, and the brand throws with colors and gold, glitter and glamor, Prada stands for subdued and timeless elegance and sober, chic class.

The Archetype of Prada is the ‘ruler’, the leader, while the archetype of Versace that is from the ‘lover’, the lover

« Each fashion brand stands for its own archetype, » says Gabriele Moschin, Fashion Design Management and AI teacher, to fashion training in Italy and Finland. « The Archetype of Prada is the ‘Ruler’, the leader, while the archetype of Versace that is from the ‘lover’, the lover. » There is also a geographical difference. Prada embodies northern minimalism from chic, international Milan, while Versace, which goes all the way for southern Italian maximism, resulted from the sewing workshop of the family in the sultry, multi-colored reggio Calabria. Gianni Versace used his younger sister Donatella as a mannequin to practice his creativity. « He dressed me and then sent me to the streets in a yellow mini skirt, with high leather boots and bleached hairs. I was twelve at the time, » Donatella Versace said in The Italian press.

How successful the acquisition will be in the financial field is still looking coffee. European luxury brands are struggling with the uncertainty of Donald Trumps import duties. Versace already had a hard time financially, and the step aside of Donatella Versace was an extra blow. Prada, that wants to grow, closed 2024 with a turnover growth of 17 percent, especially thanks to the success of Miu Miu, a brand that catches on with (wealthy) young people worldwide.

Effect

What will Versace look like under the wings of Prada? A merger of two very different fashion styles excludes fashionner Gabriele Moschin. If two fashion brands are so different, they must mainly cherish that individuality. « Going to brands within one group are very similar to each other, there is a risk that they will be able to be able to be able to be able to be able to be able to be able to be able to be able to be able to be able to be able.

Moschin would recommend the new creative director at Versace to dive into the archive, and use the era with Gianni at the helm as a source of inspiration. « An iconic piece such as the » Oroton dress « (a metallized look), which was worn by top models Naomi Campbell and Kate Moss in the nineties, was again popular a few years ago, » he calls as an example. The fashion teacher hopes that Versace will be surprised again. Look).

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