Prada to cull wholesale channels
Italian luxury fashion label Prada is to cull its wholesale distributor list, in order to take more direct control of pricing.
In a short filing with the Hong Kong stock exchange (where the company is listed) Prada said that its board has analysed in detail the structure of its wholesale channels “and noted the growing complexity and fragmentation of the wholesale market”.
Consequently, the board has resolved in favour of additional rationalisation of its network of independent partners.
“The Prada Group considers it essential to ensure greater consistency in pricing policies across retail and digital channels,” said chairman Carlo Mazzi in the filing.
“This strategic review is intended to further strengthen the Prada Group brands with the aim of supporting sustainable long-term growth.”
The statement offered no further details of how the rationalisation would be undertaken or how many wholesalers would be culled, although it is apparent online distribution may be most affected.
Like many luxury brands, Prada wants to maintain relative product pricing between wholesalers and its own stores, in much the same way Apple has succeeded globally.
This story first appeared on sister site Inside Retail Asia.