Italian luxury house Prada expands in PH

MANILA  -Italian luxury house Prada is expanding in the Philippines through a P380-million joint venture deal with the Tantoco family’s retail group, Stores Specialists Inc. (SSI),  to cater to a vibrant high-end market.

SSI, which carries the country’s leading portfolio of overseas brands such as Hermès, MUJI and GAP, announced the creation of a new venture called Prada Philippines, which will be 60 percent owned by Prada S.p.A and 40 percent owned by SSI.

“The [joint venture] is expected to accelerate the growth of the Prada brand in the Philippines and enable operating efficiencies, as SSI and Prada transition from a franchisee-franchisor relationship to joint venture partners,” SSI said in a stock exchange filing on Friday. Founded over a century ago, Prada is one of the world’s leading luxury groups with a product portfolio that spans apparel, leather goods and footwear.

READ: SSI 2022 profit hits record high of P1.9B

SSI said the joint venture with Prada will official begin operations on Jan. 1, 2024.

Prada is hoping to tap resilient domestic demand for upscale goods as high-end buyers remain impervious to elevated inflation.

READ: Filipinos ready to spend on fashion, travel, food

Research firm Millie Insight revealed in a report last May that one in four consumers in the Philippines were “likely” to increase spending on luxury items.