Prada’s Lorenzo Bertelli on the Versace deal, the luxury industry’s challenges, and more

Lorenzo Bertelli, CMO and head of CSR for the Prada group, spoke at a conference organised by Deloitte at their Milan corporate headquarters on October 21. Bertelli covered a wide range of subjects, starting with his joining the group. “I was never pressured to work in the family business,” he said. “I was good at motor racing. I raced for 15 years and nearly won some major titles. I was close to signing a contract, but the team pulled out at the last minute. When I decided to quit racing, I joined the family group for the challenge. The sporting world teaches you how to race faster than your rivals. I brought this spirit into my work. I’m extremely competitive, though in the end health, relationships and friends are what count.”

Bertelli, son of Miuccia Prada and Patrizio Bertelli, has a degree in philosophy and is a former rally driver. He has been designated as the future CEO of the Italian luxury group currently led by Andrea Guerra. “Before I began motor racing, I studied philosophy. It helped me understand marketing and the social aspects of the world we’re living in. Fashion, more than other sectors, is closely linked to these aspects. Philosophy gave me the right perspective. As I delved into the work of various philosophers, I realised there is a rationale behind every perspective. When managing a brand, you need to understand its perspective, and how it impacts consumers. Today’s main problem is the relationship between old and new generations. And how the more experienced ones can help the younger ones,” said Bertelli.

Bertelli focused on the difference between companies and brands. “For companies, the family side isn’t important. Brands instead play a long-term game, with a 30-year outlook. Family-run businesses adopt a more far-reaching perspective, and this is the key to our success. It’s no coincidence that fashion companies are mostly privately owned. Nowadays, our identity is defined by our consumers. To figure out which direction to take in the future, you have to walk this tightrope, and it takes a lot of knowledge about the past,” said Bertelli.

With regards to Prada’s relationship with culture, Bertelli agrees with his mother’s distinction between artists and designers. “Artists were poor, and unhappy about it. Their aim wasn’t commercial. Designers are instead born to sell. Nowadays, there are designers who want to be artists. We must respect the artist’s original role. [People are] talking about fashion as a work of art, but it’s not so. [An artist’s and a designer’s] are two different jobs, it’s important to make the distinction,” said Bertelli.

“You cannot simply pretend to be passionate about culture,” Bertelli continued. “Nowadays, many are using culture, but real culture is hard to fake. My father is a sailing enthusiast. He wanted to sail in the America’s Cup, so he set up the Luna Rossa project. There was no other vision behind the sporting project,” said Bertelli.

About his working relationship with his parents, both regarded as fashion icons, Bertelli said that “they’re still only my parents. I’m lucky to be able to work with them, it’s fascinating but also tough,” he said. 

Commenting on the Versace acquisition, Bertelli pointed out that there is no overlap with Prada. “They’re two complementary brands. Versace’s brand awareness is among the top five or six worldwide. It’s such a strong brand. We closed the deal at a reasonable price. It was the right time to seize a growth opportunity for the group,” said Bertelli.

On the luxury market’s prospects, Bertelli said that “we’re going through a normalisation phase, after the 2000s, when consumers were very keen on luxury products. I worry about social tensions. People are now afraid of wearing luxury watches. The widening social divide is preventing the base from expanding, and luxury risks becoming something for the elite,” said Bertelli.

Talking about sustainability, Bertelli was deliberately provocative. “If we want a sustainable world, let’s rid the planet of the human race, and we’ll have solved the problem. Instead, we need to be aware of our products’ environmental impact. A €5 T-shirt is not sustainable. [Products] should be priced appropriately. Sustainability isn’t about not polluting, but about learning to live in equilibrium with the planet. Capitalism is a recent phenomenon, it must still settle. Today, the environment is one extra concern, besides economic ones. But they mustn’t become ideologies, like the green deal in Europe. The direction is right, but we need more pragmatism,” said Bertelli.

The Prada group donates 1% of its revenue to the Unesco’s Sea Beyond project “to raise awareness among students and the new generations about the need to respect the oceans. The future’s conscious choices are in the hands of today’s kids. The [project’s] educational syllabus has been adopted by every public school in Brazil. We’re hoping that other countries will join the initiative,” concluded Bertelli.