Prada – one of the world’s largest private fashion brands has announced yet another attempt to go public. Prada, currently trading on Milan stock exchange has announced plans for IPO at Hong Kong Stock Exchange. Listing date is currently set to June 23 or 24, 2011.
According to recent valuation company is worth anywhere from $10 billion to $15 billion. It has been announced that 20% of stock will be put up at Hong Kong Stock Exchange.
Company has attempted an IPO 4 times in the last 10 years. Most recently, just in 2008 when decision was made to postpone the initiative due to economic crisis. The main goal for IPO is to pay off company’s outstanding debt of $1.4 billion. Over the years of industry struggle Prada was able to sustain firm market standing due to focus on purse and shoes. Over 2010 company reported 150% profits and sales increase. Full year sales for 2010 totalled $2 billion.
Company is currently operated by Patrizio Bertelli, husband of Miuccia Prada – a granddaughter of the founder and a Chief Creative Designer as of 1978. Along with anchor brand Prada, company also owns Miu Miu and two shoe companies – Church’s and Car Shoe.
The Asian IPO is deemed to have a marketing benefit to promote Prada boutiques opened across China, Hong Kong and South East Asia over the past decade. If IPO promotion is done right company may enjoy steep sales increases due to better brand awareness. It could be the most effective marketing technique since “Devil Wears Prada” film. Company is set to open 90 more stores in Asia in the near several years – an unprecedented increase for a foreign brand. This expansion strategy
is necessary to compete with LVMH Moet Hennessy Louis Vuitton – one of the word largest fashion conglomerate that is exercising very aggressive Asian market penetration strategy.
Prada accessories are among most desired on the market. The collection of Prada eyewear was first launched in 1999 now expanded into Prada and Prada Sport product lines. Prada sunglasses are also among most popular among men. The brand following its minimalistic style and toned down colors has created a large variety of unisex glasses models and men sunglasses that capture a large portion of market share from Hugo Boss, Tom Ford and Dior Homme – other luxury eyewear rivals.