Torgiano (Italy) – When news spread on Tuesday morning that the Compagnie Financière Richemont had acquired the Italian jeweler Vernier, the Prada Group’s top brass went all out to support Made in Italy production.
What started as a lecture before the group’s first tour of the Torgiano knitwear industry structure covered some of the most important issues in the industry and Italy at the moment, starting from supply chain protection to intergenerational handovers and M&A. The conversation turned into a conversation about. .
Lorenzo Bertelli, marketing director and head of CSR, said the group “has always been and will always be open to considering opportunities.” He is the son of Prada founders Miuccia Prada and Patrizio Bertelli and declined to comment on questions about Giorgio Armani, a possible future target. “We don’t know about his own personal thoughts,” he said, referring to the designer.
The group’s chief executive, Andrea Guerra, said he did not believe Armani was ready to sell the company following recent comments to Bloomberg about his future. “It’s more about his life,” he said, adding that he believes it is a potential benefit for the Prada Group. It was “not on the agenda” at the company. He also noted that the group’s acquisitions are being made “not for their own sake, but to add value.” Recent acquisitions include cashmere company Filati, his Viajo Remodesto and luxury knitwear company Luigi his Fedelier, along with Zegna Group.
Prada’s Torgiano factory.
Alessandro Ciampi
Mr Guerra, who joined the group in January last year, praised the founders’ long-term view on succession. “They started taking over five or six years ago and the economic and cultural growth speaks to the evolution of the group. Is it an easy road? No, especially since two of the founders are still here. This is especially true if you’re in the right place, have foresight, and are smart. [as they are] The point is, this is a long journey. This group has very deep roots in culture. When you talk to the founders, they say it’s not just about finances, it’s about being part of the cultural scenario and being able to advance in the world of luxury. ”
The event was held at the Trugiana knitting factory, which produces both Prada and Miu Miu brands, on the outskirts of Perugia, Umbria. He opened for the first time after the group was twice the size of his and expanded to 9,000 square meters and added more than 15,000 square meters of parkland. This factory was first acquired by him in 2000, when he had 39 employees. It doubled in size in 2017 and again at the end of last year.
Although he did not provide a specific breakdown, Guerra said knitwear was one of the most important categories for the group. Women were seen knitting and crocheting near technologically advanced machines, pointing to a growing interest in handmade knitwear. The Torgiano factory produces 30,000 units per month.
Torgiano has 214 employees (72% women) and is “symbolic of the group’s investments in Italy over the past 40-50 years,” Guerra said. The Group has 26 industrial locations (23 in Italy) and the Group employs 14,876 people, of whom 3,522 are in the industrial sector.
Guerra said the group plans to invest around 70 million to 80 million euros a year in industry, excluding acquisitions, and is currently building a new leather goods factory in Piancastañio, near Siena, and a ready-made garment factory in Senigallia. It is said to be under construction. Located in central Italy.
Embroidery at Prada’s Torgiano factory.
From 2019 to 2022, the Group invested 210 million euros in industrial structures.
“My father was one of the first people to believe in the verticalization of production, in the direct control of factories within the region,” said Lorenzo Bertelli. While many are concerned about finding craftsmen in the industry, he brought good news: “More and more young people are interested in this field.” The group employs his 352 people in Umbria, the center of knitwear manufacturing. Brunello Cucinelli, Fabiana Filippi and Lorena Antoniazzi are just a few of the nearby brands.
Although Italy has not been successful in building luxury fashion conglomerates, Bertelli acknowledged that foreign investment in the country has also helped protect and develop some brands. Meanwhile, other countries are losing the production capacity that Italy is so proud of, Guerra added.
The factory has an in-house school, or something called the Prada Academy, and Bertelli stressed the importance of experts and senior craftsmen working with the younger generation to perfect their training, so generational change is once again happening. It became an important theme. It may last for 4-5 years. “Creating a dialogue between generations and transmitting our know-how is a fundamental issue,” he said. “We have to protect the Made in Italy image.”
Crocheted at Prada’s Torgiano factory.
Guerra agreed, saying that 70 to 80 percent of the world’s luxury goods production is made in Italy. “We are not missing out on savoir-faire, but we need to improve our storytelling. Communication is lacking. Marketing is focused on the brand, not the story behind the know-how. ” he said in general terms.
“When you go to an American or French entrepreneur, they take you to a store, but in Italy, 90 percent of entrepreneurs take you to a manufacturing plant. I believe in the value of Made in Italy. I’m not eager to recover. It’s there and it’s strong,” Guerra added.
Armani has come up again in the wake of recent criminal investigations into subcontracted production by companies owned by the Armani Group. “Accidents can happen, but we have to create an environment where they don’t happen,” Bertelli said. “Our control is direct.”
“An investigation is not a verdict,” Guerra warned.
