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.
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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.
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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.