Prime Highlights
- Prada acquired its Italian fashion rival Versace in a record €1.25 billion (approximately ₹12,000 crore) acquisition.
- The acquisition is the biggest takeover of the luxury fashion sector, with Prada increasing its international portfolio.
Key Facts
- Versace was once owned by Capri Holdings, which also holds Michael Kors and Jimmy Choo.
- Donatella Versace retails as Creative Director and will now be the Chief Brand Ambassador.
- Dario Vitale, a former Miu Miu employee, will take charge of creative direction at Versace.
Key Background
In a historic moment in the history of the world fashion universe, Prada has finally acquired iconic fashion brand Versace for €1.25 billion or ₹12,000 crore. The acquisition has been viewed as an act of dominance to seal Prada’s dominance at the pinnacle of the high-stakes world fashion universe. By acquiring a world-renowned brand like Versace, Prada wants to diversify its holdings, focus market power, and reclaim Italy’s grip on the high-fashion industry.
The acquisition is happening in a period of unrest among world luxury markets with global trade tensions and shifting consumer patterns. Irrespective of these headwinds, Prada has been in sound financial health, registering a 17% increase in revenues in 2024 following growing popularity of its brand Miu Miu. Such impressive performance has enabled Prada to invest shrewdly in expanding its presence, and Versace being an outlier international brand was one of the most sought-after takeover targets. Capri Holdings had Versace, an international fashion behemoth under stress from servicing its out-of-control debt after failing to complete a takeover bid for Tapestry.
Versace’s takeover is the fulfillment of Capri’s restructuring. Donatella Versace stepped down as Creative Director but continues to be a part of Versace heritage by taking on an ambassadorial role as a chief key figure. Her replacement, Dario Vitale, is new creative talent, which is going to breathe new life into the label while being true to its bright and bold DNA. The deal has been received positively by the Italian government, with the government giving a thumbs-up for the return of Versace to the ownership of an Italian. Structural changes will be rolled in incrementally within 18-24 months, and Versace will relocate its headquarters to Milan and assume Prada’s vertically integrated business model. Existing licensing agreements on eyewear and perfume will be retained to continue the tradition as it implements its reorganized brand and marketing strategy.
This is not a business deal; this is cross-cultural fusion — reaffirmation of “Made in Italy” tradition. It places Prada on the way to compete more vigorously with the French luxury houses and for a new generation of Italian fashion based on innovation, tradition, and vision.
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