Reuters NEXT: Prada sees second-hand fashion as opportunity, assesses partnerships

VALVIGNA, Italy, December 1 (Reuters) – Italian fashion group Prada sees an opportunity in the booming second-hand fashion industry that it can develop both internally and through partnerships, said to Reuters Lorenzo Bertelli, Chief Marketing Officer and Designated Heir.

The market for chic second-hand bags and clothing has exploded over the past three years, driven by younger, more environmentally conscious shoppers seeking affordable high-end products.

It is expected to reach 33 billion euros ($ 37.2 billion) this year after growing 65% between 2017 and 2021, according to consulting firm Bain. This compares to a 12% growth for brand new luxury goods.

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Some rival luxury companies are already exploring the area. Earlier this year, the French conglomerate Kering (PRTP.PA) took a 5% stake in Vestiaire Collective, a leading platform for second-hand clothing and handbags. Kering’s flagship brand, Gucci, has also formed partnership with US-based resale platform The RealReal (REAL.O) last year. Read more

“The second hand is a strategy that we have been studying for more than a year,” said Lorenzo Bertelli, the eldest son of co-CEOs Patrizio Bertrelli and Miuccia Prada and the future leader of the brand, in an interview at the Reuters conference Next aired on Wednesday.

“I can’t give too much away, but the second hand is definitely here. We will use it as an opportunity.

“It can be a partnership with an actor or it can be something more internal, or both, kind of a hybrid solution like with e-commerce,” he said.

The heir to the Prada empire, who told Reuters he wanted to keep the family group independent when he takes the reins in a few years, does not seem afraid of the future challenges of a constantly evolving luxury sector. Read more

For this, he thanks his experience as a rally driver.

“Rally and sport in general have taught me a lot. (It) teaches you never to 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 compete.”

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Written by Claudia Cristoferi, edited by Emelia Sithole-Matarise

Our standards: Thomson Reuters Trust Principles.

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