Prada Spa

Founding

The company was started in 1913 by Mario Prada and his brother Martino as Fratelli Prada, a leather goods shop in Milan. Initially, the shop sold animal goods, imported English steamer trunks, and handbags.

Mario Prada did not believe women should have a role in business, so he prevented female family members from entering his company. Ironically, Mario's son had no interest in the business, so it was Mario's daughter Luisa who succeeded Mario and ran Prada for almost twenty years. Luisa's daughter, Miuccia Prada, joined the company in 1970, eventually taking over from Luisa in 1978.Miuccia began making waterproof backpacks out of Pocono, a nylon fabric. She met Patrizio Bertelli in 1977, an Italian who had begun his own leather goods business at the age of 24, and he joined the company soon after. He advised Miuccia on company business, which she followed. It was his advice to discontinue importing English goods and to change the existing luggage.

Development

Miuccia inherited the company in 1978 by which time sales were up to U.S. $450,000. With Bertelli alongside her as business manager, Miuccia was allowed time to implement her creativity in the company's designs. She would go on to incorporate her ideas into the house of Prada that would change it.She released her first set of backpacks and totes in 1979. They were made out of a tough military spec black nylon that her grandfather had used as coverings for steamer trunks. Initial success was not instant, as they were hard to sell due to the lack of advertising and high prices, but the lines would go on to become her first commercial hit.

Next, Miuccia and Bertelli sought out wholesale accounts for the bags in upscale department stores and boutiques worldwide. In 1983, Prada opened a second boutique in the centre of the Galleria Vittorio Emanuele in Milan's shopping heart, on the site of the previous historic "London House" emporium run by Felice Bellini from 1870 to the 1960s, reminiscent of the original shop, but with a sleek and modern contrast to it.

The next big release was a nylon tote. That same year, the house of Prada began expansion across continental Europe and the United States by opening locations in prominent shopping districts within Florence, Paris, Madrid, and New York City. A shoe line was also released in 1984. In 1985 Miuccia released the "classic Prada handbag" that became an overnight sensation. Although practical and sturdy, its sleek lines and craftsmanship had a luxury that has become the Prada signature.

In 1987, Miuccia and Bertelli married. Prada launched its women's ready-to-wear collection in 1988, and the designs came to be known for their dropped waistlines and narrow belts. Prada's popularity increased when the fashion world took notice of its clean lines, opulent fabrics, and basic colors.

The logo for the label was not as obvious a design element as those on bags from other prominent luxury brands such as Louis Vuitton. It tried to market its lack of prestigious appeal, including of its apparel, by projecting an image of "anti-status" or "inverse snobbery".

1990s

Prada's originality made it one of the most influential fashion houses, and the brand became a premium status symbol in the 1990s.

Sales were reported at L 70 billion, or US$31.7 million, in 1998. Patrizio di Marco took charge of the growing business in the United States after working for the house in Asia. He was successful in having the Prada bags prominently displayed in department stores, so that they could become a hit with fashion editors. Prada's continued success was attributed to its "working-class" theme which, Ginia Bellafante at The New York Times Magazine proclaimed, "was becoming chic in the high-tech, IPO-driven early 1990s." Furthermore, now husband and wife, Miuccia and Bertelli led the Prada label on a cautious expansion, making products hard to come by.

In 1992, the high fashion brand Miu Miu, named after Miuccia's nickname, launched. Miu Miu catered to younger consumers and celebrities. By 1993 Prada was awarded the Council of Fashion Designers of America award for accessories.

The first ready-to-wear menswear collection was Spring/Summer 1998. By 1994, sales were at US$210 million, with clothing sales accounting for 20% . Prada won another award from the CFDA, in 1995 as a "designer of the year" 1996 witnessed the opening of the 18,000 ft² Prada boutique in Manhattan, New York, the largest in the chain at the time. By now the House of Prada operated in 40 locations worldwide, 20 of which were in Japan. The company owned eight factories and subcontracted work from 84 other manufacturers in Italy. Prada's and Bertelli's respective businesses were merged to create Prapar B.V. in 1996. The name, however, was later changed to Prada B.V., and Patrizio Bertelli was named Chief Executive Officer of the Prada luxury company.

1996 can also be seen as marking an important turning point in Prada's aesthetics, one that fueled the brand's worldwide reputation. Journalists praised Miuccia's development of an “ugly chic” style, which initially confused customers by offering blatantly unsexy outfits which then revealed to offer daring and original takes on the relationship between fashion and desire. Since then Prada has been regarded as one of the most intelligent and conceptual designers.

In 1997, Prada posted revenue of US$674 million. Another store in Milan opened that same year. According to The Wall Street Journal, Bertelli smashed the windows of the store a day before the opening, after he had become deeply unsatisfied with the set-up. Bertelli also acquired shares in the Gucci group, and later blamed Gucci for "aping his wife's designs." In June 1998, Bertelli gained 9.5% return on investment at US$260 million. Analysts began to speculate that he was attempting a take over of the Gucci group. The proposition seemed unlikely, however, because Prada was at the time still a small company and was in debt. Funding Universe states that "At the very least, Prada had a voice as one of Gucci's largest shareholders and would stand to profit tidily should anyone try to take over Gucci." However, Bertelli sold his shares to Moët-Hennessy • Louis Vuitton chairman Bernard Arnault in January 1998 for a profit of US$140 million. Arnault was in fact attempting a take over of Gucci. LVMH had been purchasing fashion companies for a while and already owned Dior, Givenchy, and other luxury brands. Gucci, however, managed to fend him off by selling a 45% stake to industrialist François Pinault, for US$3 billion. In 1998, the first Prada menswear boutique opened in Los Angeles.

Prada was determined to hold a leading portfolio of luxury brands, like the Gucci group and LVMH. Prada purchased 51% of Helmut Lang's company based in New York for US$40 million in March 1999. Lang's company was worth about US$100 million. Months later, Prada paid US$105 million to have full control of Jil Sander A.G., a German-based company with annual revenue of US$100 million. The purchase gained Prada a foothold in Germany, and months later Jil Sander resigned as chairwoman of her namesake company. Church & Company, an English shoemaker, also came under the control of Prada, when Prada bought 83% of the company for US$170 million. A joint venture between Prada and the De Rigo group was also formed that year to produce Prada eyewear. In October 1999, Prada joined with LVMH and beat Gucci to buy a 51% stake in the Rome-based Fendi S.p.A. Prada's share of the purchase was worth US$241.5 million out of the reported US$520 million total paid by both Prada and LVMH. Prada took on debts of Fendi, as the latter company was not doing well financially.

These acquisitions elevated Prada to the top of the luxury goods market in Europe. Revenue tripled from that of 1996, to L2 trillion. Despite apparent success, the company was still in debt.

2000s

The company's merger and purchasing sprees slowed in the 2000s. However, the company signed a loose agreement with Azzedine Alaia. Skincare products in unit doses were introduced in the United States, Japan, and Europe in 2000. A 30-day supply of cleansing lotion was marketed at the retail price of US$100. To help pay off debts of over US$850 million, the company planned on listing 30% of the company on the Milan Stock Exchange in June 2001. However, the offering slowed down after a decline in spending on luxury goods in the United States and Japan. In 2001, under the pressure of his bankers, Bertelli sold all of Prada's 25.5% share in Fendi to LVMH. The sale raised only US$295 million.

By 2006, the Helmut Lang, Amy Fairclough, Ghee, and Jil Sander labels were sold. Jil Sander was sold to the private equity firm Change Capital Partners, which was headed by Luc Vandevelde, the chairman of Carrefour, while the Helmut Lang label is now owned by Japanese fashion company Link Theory. Prada is still recovering from the Fendi debt. More recently, a 45% stake of the Church & Company brand has been sold to Equinox.

The Prada Spring/Summer 2009 Ready-to-Wear fashion show, held on 23 September 2008 in Milan, got infamous coverage because all the models on the catwalk were tottering – several of them stumbled, while two models fell down in front of the photographers and had to be helped by spectators to get up. They removed their shoes in order to continue their walk. One more model even had to stop and go back during the finale walk as she couldn't manage walking in her high heels any longer. Interviewed right after the show, one model declared: "I was having a panic attack, my hands were shaking. The heels were so high."

The designer Miuccia Prada, on her side, did not blame the height of the shoes, but the silk little socks inside, which were slippery and moved inside of the shoes, preventing the models' feet from having a correct grip on the sole. Miuccia Prada also assured that the shoes sold in stores would have a lower heel, and that the little socks would be sewn into the shoes in order to prevent further slips. But many fashionistas rightly claimed that the socks, once sewn into the shoes, would be non-washable and would quickly stink and become grey. Consequently, the shoes have never been commercially sold.

2010s

According to Fortune, Bertelli planned on increasing revenue of the company to US$5 billion by 2010.

Prada is the main buyer from the Turkish leather factory DESA, which was found guilty by the Turkish Supreme Court of illegally dismissing workers who joined a union. The Clean Clothes Campaign, a labor rights organization based in Europe, has called on Prada to ensure that freedom of association is respected at the factory. On January 30, 2013, Clean Clothes Campaign reported, "Trade Union Harassment Continues at Prada Supplier".On May 6, 2011, Hong Kong Stock Exchange was accused on approving Prada's IPO during Prada Gender Discrimination Case which Prada was ultimately to win. Feminist NGOs and Hong Kong Legislative Council lawmaker Lee Cheuk-yan protested in front of Hong Kong Stock Exchange.On June 24, 2011, the brand was listed on the Hong Kong Stock Exchange to raise $2.14 billion, but failed to meet expectations reported by AAP on June 17, 2011 and Bloomberg.In 2015, Prada's turnover was 3,551.7 million euros, up 1 percent from 2014, while its gross operating profit fell 16.5 percent to 954.2 million euros.In February 2015, a report in The New York Times by Charles Curkin was published about the use of ostrich leather by luxury fashion brands and the brutal methods by which it is removed from the flightless birds. It was based on a months-long investigation conducted by PETA and namechecked Prada as one of fashion's key brands dealing in products made from ostrich skin.In July 2016, Prada clothing became available to purchase online for the first time through Net-a-Porter and Mytheresa.As of March 2018, Prada's sales turned positive after declining since 2014, and their stock jumped 14% at the news.Stating that Prada would be "ocusing on innovative materials will allow the company to explore new boundaries of creative design while meeting the demand for ethical products," the company announced in 2019 that fur will be eliminated from the collection and all house brands as of 2020.

2020s

In February 2020, Miuccia Prada and Patrizio Bertelli named the Belgian designer Raf Simons as co-creative director.In August 2020, the fashion house announced it would no longer use kangaroo leather in its products.

In 2020, fashion magazine Vanity Teen promoted its Prada Resort 21 campaign.

America's Cup and the Prada Cup

Patrizio Bertelli's passion for sailing led Prada to form Team Luna Rossa in 1997 in order to participate in the America's Cup. On September 28, 2017 it was announced by the Royal New Zealand Yacht Squadron that Prada will be the hosting sponsor of Challenger Selection Series at the 2021 America's Cup, superseding the role of Louis Vuitton started in 1983.

The Challenger Selection Series that was the Louis Vuitton Cup, will now be known as the Prada Cup, and the America's Cup Match will be presented by Prada. It will be held in Auckland, New Zealand, January 2021.