In a jaw-dropping move that will change the luxury fashion sector, Prada has bought its iconic rival Versace for $1.38 billion from Capri Holdings. The acquisition consolidates two fashion houses which are symbols of Italy and are global players in fashion. It was announced on Thursday.
Prada has been countering the slowdown in the luxury market, and is intent on global expansion, which makes this acquisition versatile. On the other hand Versace, that has been struggling financially in recent quarters, can now expect more stable growth under new management. This merger changes everything for the brand.
The union is more than a business decision and has deepened significance. It is an expression of art. While Baroque glamour is Paris’s domain, minimalistic elegance is more of Pradas forte. This symbiosis provides each brand with a sharp competitive advantage without sacrificing the identity of any brand.
The merger strengthens Pradas presence in Italian luxury, however sends the message that Italian fashion is blended with history and tech and has heeded for bold moves.