Italian fashion group Prada sees opportunity in the booming second-hand fashion sector which it can develop both in-house and through partnerships, marketing chief and heir designate Lorenzo Bertelli said.
The market for pre-owned chic bags and clothes has surged over the last three years, driven by younger, more environmentally conscious shoppers looking for affordable high-end goods.
It is expected to reach 33 billion euros ($37.2 billion) in size this year after growing by 65% between 2017 and 2021, according to consultancy Bain. This compares with 12% growth for brand new luxury goods.
Some rival luxury companies are already exploring the sector. Earlier this year, French conglomerate Kering took a 5% stake in Vestiaire Collective, a leading platform for second-hand clothes and handbags. Kering’s star brand Gucci also formed a partnership with U.S.-based resale platform The RealReal last year.
“Second hand is a strategy we have been investigating for more than a year,” Lorenzo Bertelli, the eldest son of co-Chief Executives Patrizio Bertelli and Miuccia Prada, and the future brand leader, said in an interview.
“I cannot disclose too much but for sure second-hand is there. We will take it as an opportunity.
“It can be a partnership with a player or it can be something more in-house, or both of them, a sort of hybrid solution like for e-commerce,” he said.
The heir to Prada’s empire, who said he wants to keep the family-controlled group independent when he takes the reins in a few years, doesn’t seem fazed by the future challenges of the ever-changing luxury sector.
“Rallying and sport, in general, taught me a lot. (It) teaches you to never give up and also a lot of humility, in the sense that you have to learn,” he said. “Sometimes sport is cruel when you want to measure yourself.”
