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Prada Group inks new joint venture in the Philippines

Prada Group has inked a new joint venture for the Philippines with luxury distributor SSI Group, through its subsidiary Stores Specialists, as the Italian fashion group shifts from a franchise model in the Southeast Asian nation.

SEE ALSO: Prada Group 9M revenues held up by Asia Pacific, Japan amid Q3 slowdown

Labelled ‘Prada Philippines’, the new joint venture will see both SSI Group and Prada Group initially invest PHP 16.6 million (USD 299,724) and PHP 25 million, respectively, before raising the total investment in the venture to PHP 152 million and PHP 228 million at completion, according to a filing on the Philippine Stock Exchange.

Under the agreement, Prada Group, which owns Prada, Miu Miu, and Church’s, will own 60 percent of the new Prada Philippines agreement, while Stores Specialists will own 40 percent. The joint venture commences from the beginning of 2024.

“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,” said the filing.

Based in the Philippines, SSI Group operates a varied portfolio of luxury brands in the Asian market including Balenciaga, Boss, Bottega Veneta, Cartier, Loewe and Alexander McQueen.

In its most recent trading update, Prada Group said its Asia Pacific market “progressed well” over the first nine months of 2023, up 21 percent, “on a volatile basis of comparison, which saw significant disruption in Q2 and Q4 2022,” according to a press release at the time of reporting in November.

Meanwhile, Japan remained the group’s best performing region during the nine-month period, seeing growth of 47 percent, largely driven by local demand.