- Robyn Turk |
Prada SpA has decided to reduce its wholesale network as a means to keep better pricing consistency across all retail channels. The company told WWD that it notices a "growing complexity and fragmentation of the wholesale market" and its new plan of action will allow greater transparency with consumers.
In a short filing with the Hong Kong stock exchange this week, the company's chairman Carlo Mazzi stated, “The Prada Group considers it essential to ensure greater consistency in pricing policies across retail and digital channels. “This strategic review is intended to further strengthen the Prada Group brands with the aim of supporting sustainable long-term growth.”
While the Italian luxury group has not yet shared details of its new wholesale strategy, a company spokeswoman told WWD that the move will allow Prada more control over distribution. The leather goods category will be the most impacted.
Reuters reported that Prada's plans involve cutting back with Italian and European wholesale partners and focusing more on e-commerce wholesale options.