Italy joins. Prada buys Versace – and this is more than just a merger of two major names. It is an attempt to restore global clout to Italian fashion, in a world increasingly dominated by French conglomerates such as LVMH.
Versace was not having the best of times. The brand was operating at a loss and demand for luxury goods was declining. Meanwhile, Prada is not only holding its own, it continues to expand. The $1.375 billion deal with Capri Holdings (owners of Versace) is a long-term strategic move. It includes debts, yes, but also great ambition.
“We want to preserve the Versace legacy, but give it new strength,” says Patrizio Bertelli, CEO of Prada.
It is not a question of revising its style, but of renewing its spirit. Versace’s aesthetic is bold, sometimes excessive, but always recognizable and emotional. And if anyone can give it a new look, it’s Prada.
It is symbolic that the deal is closing right now: with unstable financial markets and threats of a new global recession. But Italy seems to say: we are still here and we can still set the trend.
It is both a commercial and a cultural decision. At a time when fashion is increasingly merging with corporate and tech logic, Prada and Versace bring back to the scene the Italian dream: about beauty, craftsmanship, character. While France is counting its profits, Italy is once again telling stories.
