Cutting ties with over 200 supply chains, Prada under RedNote scrutiny

What happened The Prada Group has faced dual pressures over the past fortnight, navigating a major creative appointment at Versace while fielding questions about labor standards across its Italian supplier network. Pieter Mulier will join Versace as creative director on July 1, 2026 replacing Dario Vitale who departed in December after just one collection. The Belgian designer, who most recently led Alaïa, inherits a brand whose cultural visibility has consistently outpaced sales. Versace’s revenue has declined from $539 million in H1 2023 to $386 million in H1 2025 under previous owner Capri Holdings. Executive chairman Lorenzo Bertelli framed the appointment as strategic: “We identified Pieter Mulier as the right person for the brand when we considered the Versace acquisition.” 222 suppliers cut as audits expose violations Separately, Prada Group has terminated ties with 222 suppliers since 2020 following more than 850 audits of its Italian supplier network. The inspections, part of a “zero tolerance” policy, uncovered labor law violations including unsafe working conditions, unauthorized subcontracting, inadequate health and safety measures, and in some cases, workers sleeping in dormitories inside factories. Prada is not under formal investigation, but Milan prosecutors requested supply chain documentation in December as part of a broader probe into alleged labor abuses across Italy’s luxury manufacturing sector. These challenges reflect broader pressures facing luxury conglomerates: delivering creative renewal at acquired brands while meeting rising scrutiny over manufacturing practices that have sustained Italy's luxury industry for decades. The Jing Take Netizen reactions to Prada’s supply chain cull illustrate a broader reputational challenge facing luxury brands in China. Comments, such as, “Prada is charging high prices for nylon,” and skepticism about supplier oversight reveal a growing impatience with perceived price-value imbalance. Chinese luxury consumers increasingly challenge price-value relationships, particularly around materials and manufacturing transparency. Platform discussions on Xiaohongshu (also known as RedNote) and other channels show shoppers questioning why premium pricing persists without corresponding improvements in quality or ethical standards — scrutiny that intensifies when brands face labor controversies. Online scrutiny turns ethics into brand equity The scrutiny reflects broader shifts in Chinese luxury consumption, where buyers increasingly prioritize tangible value in design, function, and manufacturing ethics over heritage alone. Platform discussions show consumers questioning price increases that don't correspond with quality improvements. As China’s economic growth moderates, luxury shoppers have become more selective, demanding visible evidence of craftsmanship and ethical production practices rather than accepting price as a proxy for quality. For legacy houses like Prada Group, which are simultaneously managing creative transitions and reputational scrutiny, these attitudes suggest that success in China will increasingly depend on meaningful quality differentiation and ethical transparency rather than heritage alone. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

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Cutting ties with over 200 supply chains, Prada under RedNote scrutiny