Prada Group bolsters ‘Made in Italy’ production

As cozy Prada cardigans and crocheted Miu Miu miniskirts sashayed down Fall 2024 runways, Prada Group’s knitwear factory in Torgiano, Italy, had its own moment in the spotlight. Unveiled on May 7 by Prada Group CEO Andrea Guerra and Prada Group marketing director and head of CSR Lorenzo Bertelli, the expanded Torgiano knitwear hub is a milestone in Prada Group's industrial growth and sustainability drive. By doubling the facility’s production capacity and employing over 200 locals, predominantly women, Prada is reinforcing its long-term commitment to Made in Italy craftsmanship and nurturing the next generation of artisans. At the opening event, CEO Andrea Guerra described the evolution of the Torgiano facility as a symbol of the Group’s development in Italy over the years. “The Group has built an open network of intelligent relationships and collaborations, merging craftsmanship and scale to bring constant innovation to the market,” Guerra said. This strategy is clearly yielding results. In Q1 2024, Prada Group defied luxury market volatility to report year-on-year retail sales growth of 18%, its 13th consecutive quarter of growth. As other luxury heavyweights battle sales slumps and supply chain woes, Prada’s ambitious strategy for sustainable value creation, coupled with its passion for driving cultural conversation and change, seems to be giving it a competitive edge in a choppy market. Industrial sustainability In addition to its sales success, “We have made significant progress on the Group’s evolution, a journey that encompasses every aspect of the organization, enabling our brands to maintain their relevance in an ever-changing society,” Guerra said. Torgiano is a case in point. The Umbrian town has a long knitwear tradition, and Prada Group acquired a 2,600-square-meter facility there in 2001. As knitwear has become a key category for the Group, the factory was expanded, first in 2017 and again in 2023. Now covering 9,000 square meters, it brings together all the main stages of knitwear design and production for the Prada and Miu Miu brands in-house. From the original 39 employees, the facility now employs 214 local workers, 72% of whom are women and 16% are under 35, fostering a generational transition of artisanal talent. Some 15,000 sq m of green space surrounding the factory has been landscaped with areas for relaxation, helping it blend into the rural Umbrian landscape. The site aims to achieve LEED Gold certification by August thanks to its eco-credentials, such as a multi-purpose closed water circuit and the ability to generate 38% of its own energy. This would help the Group meet its ambitious environmental targets to reduce greenhouse gas emissions across its supply chain as well as contribute to its wider environmental strategy, together with initiatives such as the Forestami and Sea Beyond projects. Drivers of change Since 2015, Prada has been investing heavily in upgrading and reorganizing its entire manufacturing structure, from the production facilities to the supply chain and skilled workforce. “The ‘control room’ for the Prada Group remains in Italy; it is a strength of our Group,” said Guerra. The Prada Group will invest around €60 million ($65.1 million) in industrial development this year alone. Last year, a further €60 million was invested in what it terms “vertical integration,” which involves in-sourcing stages of the production process and acquiring strategic skills. “The Group is at the core of a network of relationships where acquisitions mean expanding production capacity and acquiring know-how,” said Guerra. “Italy is our production center, and ensuring generational stability for small and medium-sized companies is part of our entrepreneurial role and responsibility." Twenty-three of Prada’s 26 production sites are located in Italy. Over recent years, Prada has developed a network of garden factories across the country, including its Valvigna industrial headquarters in 2017, to host the production division and the development of the Prada and Miu Miu leather goods collections. Together with the Italian Zegna Group, Prada has also strengthened its supply chain by acquiring stakes in Made in Italy manufacturers, including a leather tannery and a family-run fine yarn specialist. “We have to make sure that companies invest in Italy and that we protect the true Made in Italy,” said Lorenzo Bertelli, Prada Group marketing director and head of corporate social responsibility. “By investing in the vertical integration of our supply chain, we can broaden our oversight and control over the most delicate phases of value creation.” With the continued rise of ethical consumerism, particularly among young generations, trust, transparency, and environmental action are more important than ever to winning the hearts and wallets of luxury consumers in China today. Maintaining control over production and supply chains has become vital for brands to safeguard their quality and reputation, meet increasingly stringent traceability requirements, and enable greater flexibility to respond to market demands and geopolitical situations. Expertise for future generations Aside from “planet” and “culture,” the third pillar of Prada’s sustainability strategy is “people,” encompassing both its workforce and the wider society. “The beating heart of our factories are our people. We need young people to sustain the Group’s future, and training is fundamental for this,” said Bertelli during the Torgiano opening event. The Prada Group Academy offers training programs for young Italian artisans to preserve manufacturing know-how in leather goods, footwear, ready-to-wear, and knitwear. In 2023, 143 young people were trained at the Academy, of which 110, or 77%, were hired in Italy. A new intake at the Prada Group Academy will begin at Torgiano in September this year. “Through the Academy, we have seen how the dialogue between generations is alive and successful,” said Bertelli. As Prada negotiates its own generational transition in the management of the family-run Group, it’s clear that the Italian house is forging a future that embraces luxury on an industrial scale while maintaining respect for heritage craftsmanship and sustainable practices. As consumers re-evaluate what luxury means today, Prada’s value proposition stands out stronger than ever. Presented by Prada Group

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Prada Group bolsters ‘Made in Italy’ production