Manila, Philippines – Luxury fashion brand Prada has been recently reported to have entered a joint venture with Philippine luxury retailer SSI Group’s Stores Specialists, Inc., forming a new company in the process for Prada’s expansion in the Philippines.
Prada’s new company with SSI Group, labelled as Prada Philippines Inc., will own all Prada stores in the Philippines with expectations to accelerate the brand’s growth in the market.
The joint venture also seeks to enable operating efficiencies, as SSI and Prada transition from a franchisee-franchisor relationship to joint venture partners. The expansion also follows Prada’s higher sales performance seen in its Asian markets.
Notably, SSI’s initial investment in the joint venture is PHP16.67m, whilst Prada’s initial investment is PHP25m. At completion, SSI’s total investment in Prada Philippines will be PHP152m, while Prada’s total investment in the joint venture will be PHP228m.
In terms of ownership, Prada S.p.A. owns 60% of Prada Philippines Inc., whilst SSI Group owns 40%.
Prada Philippines Inc. is expected to commence operations on January 1, 2024, effectively taking over operations throughout all Philippine PRADA outlets.
