Brand Sustainability Strategy Report Draft/Ideas

 Introduction 300 words:

•  What report is about - Review sustainability strategy
• What question are you trying to answer?  What problem are you wanting to overcome?
• Describe your starting point and the background to the brand 
• Indicate the brand's current market position. 

Prada's new sustainability strategy will be proposed in this report. It will be conveyed through a series of four visual brand narrative boards, accompanied by two customer profiling boards. The aim is to analyse their present market position, existing sustainability strategy, marketing, and communication, as well as advising on how they may enhance or modify their current/new audience engagement. It will also provide a summary of the findings and recommendations.

Mario Prada, the grandfather of current co-CEO and co-creative director Miuccia Prada, established the Italian luxury fashion business ‘Prada’ in 1913, Milan. The label began as a leather goods store in and launched its first womenswear line in 1988, a decade after Miuccia took over the business. Five years later, in 1993, menswear was introduced (Dazed Digital, 2021). The brand sells a range of items such as: fragrance, shoes, accessories, and clothing. Their best-selling product would be their classic, black handbag. They also have six other ‘mini’ brands: Miu Miu, Car Shoe, Church’s, Pasticceria Marchesi, Luna Rossa, and Fondazione Prada. In total, 633 stores are still being operated as of 2020 (according to Statista).

Up to 2019, Prada's yearly net revenues were over three billion euros. The luxury house's annual income suffered a significant fall in 2020 because of the Covid-19 pandemic. However, as of June 2021, they strongly improved by 11.1%. This was done by strengthening and investing in its brand through strict control of the distribution channels, online and offline. In addition, they enhanced their product offers and further improved customer service (Prada S.p.A, 2021).

Prada aims to bring in a younger generation as innovation and modernity are their utmost valued promise to their customers. They are known for consistently reworking and improving their previous collections which makes Gen Z and Millennials interested in their products due to their quest of adaptation and relevancy (Glamour UK, 2021). [309 words]

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Prada | Dazed. Dazeddigital.com. (2021). Retrieved 20 November 2021, from https://www.dazeddigital.com/tag/prada.

PRADA SpA. (2021). Press Release (p. 3). Retrieved from https://www.pradagroup.com/content/dam/pradagroup/documents/Shareholderinformation/2021/inglese/H1-2021/Press%20release_Prada%20S.p.A.%20approves%20Group%20results%20as%20of%2030%20June%202021.pdf

David, S., & Fullerton, A. (2021). Prada is officially the go-to designer label for super stylish millennial and Gen Z shoppers. Glamour UK. Retrieved 20 November 2021, from https://www.glamourmagazine.co.uk/article/prada-millennial-gen-z-influencers.

Directly operated stores owned Prada Group by brand 2020 | Statista. Statista. (2021). Retrieved 20 November 2021, from https://www.statista.com/statistics/612358/number-of-directly-operated-stores-owned-prada-group-by-brand/.

Social Media Influencer and Marketing 300 words: 

• Discuss your brands use of social media and influencer marketing. e.g. social media and influencer marketing across a range of platform i.e. Facebook, Insta etc., their content, and if they're successful or not.
• You can also discuss any influencers (if any).
• Influencers are used to increase the reach of their marketing messages.

Social media plays a key role in marketing and engagement with users. Prada, like many other luxury companies, has a huge social media following, with around 24 million Instagram followers and 7 million Facebook likes. The brand has little over one percent market share for online visits to luxury brands in an incredibly varied market, which includes the bulk of the top twenty luxury brands. It is also the third-most followed brand on Instagram among Italian luxury labels – it's near the top (Statista, 2021).

Prada uses its social media mostly to promote their latest campaigns, products, and collaborations. They keep their personal following to a minimum which only emphasises their exclusivity, however, modern society craves interaction which is something they struggle with in terms of communicating with their audience. Twitter is known for being one of the biggest social platforms where followers and brands can communicate freely using shares and replies, yet Prada seems to lack with engagement too with zero followers gained in the last 30 days (Social Blade, 2021).

Influencers, on the other hand, are always useful for reinforcing the brand's legacy and promoting its luxurious, elite, and desirable image. They recently did this by showcasing seven well-known celebrities dressed in Prada for the GQ and InStyle awards, as well as the Baby2Baby Gala. Another example is the #PradaBucketChallenge on TikTok. The hashtag, which has over 1.6 billion views, showcases some of the app's top artists, including Bella Poarch, Lucas and Marcus Dobre, Lil Huddy, and others, wearing a distinctive Prada hat and transitioning into a full Prada runway outfit from the label's FW21 collections (Northman T, 2021).

The brand does not have a specific influencer to represent them, instead, they cast models and do paid partnerships with content creators which helps them to gain a larger and newer audience. [302 words]

 

Prada - Statistics & Facts. Statista. (2021). Retrieved 21 November 2021, from https://www.statista.com.

Prada's Twitter stats. Social Blade. (2021). Retrieved 21 November 2021, from https://socialblade.com/twitter/user/prada.

Prada. (2021). Retrieved 21 November 2021, from https://www.instagram.com/prada/.

Northman, T. (2021). You Need To Know About Prada's Viral Bucket Hat TikTok Challenge. Highsnobiety. Retrieved 21 November 2021, from https://www.highsnobiety.com/p/prada-tiktok-challenge/.

Macro-economic analysis [Pestle] : (500 words)

Prada sells its products internationally, with the Asia-Pacific and European regions accounting for majority of their net sales (Statista, 2021). As being one of the top 10 luxury brands in China (Jing Daily,2021), its customers are extremely valuable. However, cases of Covid-19 have resurfaced, with places such as Beijing and Nanjing closing off residential areas. In Beijing, all domestic trade exhibits and activities have been cancelled for the month of August to restrict the spread. This has caused many luxury brands to face uncertainty in terms of operating in their own countries (Vogue Business, 2021).

Due to the pandemic, the lack of experiences offered to Gen Z and Millennials resulted in a total shift in purchasing patterns. Since the end of lockdown, the news on disposable income is negative. Both Millennials and Gen Z are pessimistic about their own financial futures (Share To Buy, 2021), this could mean a loss of revenue for fashion retail and markets around the world.

Prada appears to never give up. Sales in the vital Chinese market increased 52% in the second half. The Americas saw a 4% increase in growth in the second half. Sales to local clients in in Europe surged by double digits. In addition to the success in China, Prada’s Spring/Summer 2021 show received more than 30 million views on China's Weibo and Douyin platforms, due to the arrival of new co-creative director Raf Simons. In addition, Prada’s show had more than double the number of views compared to the previous season (Williams. R, 2021).

To reach a wider audience, Prada has tried to remain relevant by showing their presence in social media apps. Technology and modernism are engraved in this generation, therefore it’s suitable to introduce new forms of art and engaging marketing. This type of innovation was shown in their Dialogues Campaign 2021 where hundreds of cameras circled models in 360-degrees, to capture a multitude of views and angles, needing no need for a photographer. This campaign was featured on many platforms and social outlets (Prada Group, 2021).

 

Emissions in the fashion industry are on track to increase by more than 50% by 2030 (Kent. S, 2021). Prada is dedicated to lowering its environmental impact by collaborating with third parties to combat climate change and safeguard biodiversity and marine habitats. They calculated its Carbon Footprint as a first step in a longer process of reducing GHG emissions directly related to its operations as well as those induced by upstream and downstream value chain activities (Prada Group, 2021).

Alongside their views on the environment, The Prada Group is committed to be transparent with their Code of Ethics. They do this by operating in accordance with the United Nations Universal Declaration of Human Rights, the International Labor Organization (ILO) Declaration on Fundamental Principles and Rights at Work, and the Organization for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, as well as other Italian and international covenants and declarations in order to protect their values/principles (Prada S.p.A, 2019). [498 words]

 

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Topic: Prada. Statista. (2021). Retrieved 23 November 2021, from https://www.statista.com/topics/3533/prada/.

Nan, L. (2021). Can Prada Reach 6 Billion in Revenue Without China? | Jing Daily. Jing Daily. Retrieved 23 November 2021, from https://jingdaily.com/prada-6-billion-revenue-china/.

Webb, B. (2021). Covid-19 cases are rising in China. What does that mean for luxury?. Vogue Business. Retrieved 23 November 2021, from https://www.voguebusiness.com/fashion/covid-19-cases-are-rising-in-china-what-does-that-mean-for-luxury.

Disposable Income & Changing Spending Habits UK 2021 | Share to Buy. Share to Buy. (2021). Retrieved 23 November 2021, from https://www.sharetobuy.com/news/disposable-income-changing-spending-habits-uk/.

Williams, R. (2021). Is Prada Ready to Take Off?. The Business of Fashion. Retrieved 23 November 2021, from https://www.businessoffashion.com/articles/luxury/is-prada-taking-off/.

DIALOGUES: PRADA S/S 2021 CAMPAIGN. Prada Group. (2021). Retrieved 23 November 2021, from https://www.pradagroup.com/en/news-media/news-section/dialogues-prada-ss2020-campaign.html.

Kent, S. (2021). What COP26 Means for Fashion. The Business of Fashion. Retrieved 23 November 2021, from https://www.businessoffashion.com/briefings/sustainability/what-cop26-means-for-fashion/.

Prada S.p.A. (2019). 2019 Social Responsibility Report [Ebook] (p. 19). Retrieved 23 November 2021, from https://www.pradagroup.com/content/dam/pradagroup/documents/Responsabilita_sociale/2020/EN_Social-Responsability-Report-2019.pdf.

Existing sustainability strategy SWOT (500 words)

“Our ultimate goal will be to convert all Prada virgin nylon into Re-Nylon by the end of 2021. This project highlights our continued efforts towards promoting a responsible business” (Bertelli. L, 2021). Sustainability is a core component of the Prada Group's brand as of recent years since they announced the use of Econyl yarn. The principles contained in the Group's Sustainability Policy include investment of culture, integration with local communities, investment in new sustainable materials and the growing importance of inclusivity (Prada Group, 2021). With Lorenzo Bertelli (Chief executive) being the future of Prada, there is some hope with branching out new ideas to lessen the harm of our environment.

Prada's success in getting their environmental initiatives recognised and enhanced is limited. As of 2021, there has been no mention of any efforts being taken to help with environmental challenges. They merely scratch the surface of what it takes to be truly sustainable; they claim to have recycled 89 percent of paper, 100 percent direct storefronts with LED lighting, and ethical business practises such as owning production sites in Europe and Italy (Prada Group, 2021). With a low transparency rating, they have a lot of work to do to prove themselves to the public and their devoted customers.

External variables seem to benefit Prada. Their marketing method is the most effective right now, especially during and after the pandemic, when everyone was confined to their homes, scrolling through their phones. They used technology effectively, interacting with relevant societal trends via social media. “It is clear that the digital transformation has radically altered relationships with consumers, making them ever more aware of their purchasing choices,”- Bertelli. L. Opportunities to engage with new and old audiences are expanding, particularly in East Asia and Europe. Perhaps they might widen their horizons and appeal to the second largest group of consumers: "India had the highest number of respondents stating that their openness had increased, with 92 percent" (Statista, 2020). During the pandemic, India was highly open to engaging with ads on social media; nevertheless, there is little indication that they are one of Prada's key target consumers.

The biggest threat to any luxury/glamour retail business is brand competition and counterfeit designer goods. Prada sits very close to its competitors with others doing better in terms of transparency and sustainability. This harms the brand as people may be less inclined to trust them on their promises for change. Fakes have long been a huge business with copy right and infringement rights being constantly abused. “As of 2020, annual sales losses from counterfeiting in the clothing sector amounted to 26.3 billion euros. This figure was 4.7 billion euros for cosmetics and personal care products” (Statista, 2021). These types of illegal business continue to reap their annual revenues. While it’s always good to be positive, Patrizio Bertelli made a controversial statement in 2012 saying that “We don't want to be a brand that nobody wants to copy.” This type of ideology could cause serious harm in the future dealings of finance.

(505 words)

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Red image https://thelaterals.com/articles/sustainability-is-the-now-in-prada-fall-winter-2021-runway-show/

https://www.vogue.co.uk/article/fake-designer-goods-counterfeit-pieces

Competitors: (300 words)

The top 3 competitors for Prada are: Stella McCartney, Louis Vuitton, and Chanel as shown through the brand positioning map. They are all compared against their efforts for sustainability and their value (based on Statista’s ‘Most Valuable Luxury Brands 2021’ graph). These brands sell similar items e.g., clothing and accessories. However, some of these labels sell different products such as: swimwear, lingerie, fragrance, and skincare – something that Prada does not have in future plans.

The majority sell through identical channels, such as Flannels (a multi-brand retailer) and Selfridges, since they are all considered high-end labels. Most of the items in store are close to one another, increasing the level of competitiveness. These brands have premium pricing, so customers naturally don’t hesitate to buy expensive items as in return, they get quality, value and status. They are all similar in terms of price and promotion. Their target audiences range from 18-45+.

Prada's aesthetics and material choices, such as their Re-Nylon collection, are what set them apart. Stella McCartney's cruelty-free sustainability plan includes Econyl fabric (made from plastic recycling bottles) and faux fur. Prada also utilises Econyl, but they're having trouble making their brand cruelty-free because the Italian government has had to repeatedly postpone animal testing regulations (Guglielmi. G, 2021). Unfortunately, there is also no evidence that Prada has a policy to minimise the suffering of animals. They use leather, wool, down, angora, exotic animal skin and exotic animal hair. They have stated that they will focus on putting an end to the use of real fur (Good On you, 2020).

Overall, Prada has some significant improvements to make as they’re listed to be 11-20% on The Fashion Transparency Index 2021. Brands that succeeded them this year are Hermès (21-30%), Burberry (31-40%), and Gucci (61-70%), (Fashion Transparency Index Team, 2021). [298 words]

Bib

PRADA TOP COMPETITORS OR ALTERNATIVES. Owler. (2021). Retrieved 24 November 2021, from https://www.owler.com/company/pradagroup.

Jenik, C. (2021). Infographic: The World's Most Valuable Luxury Brands. Statista Infographics. Retrieved 24 November 2021, from https://www.statista.com/chart/8798/most-valuable-luxury-brands-by-brand-value/.

Wisson, C., & Ilieve, P. (2020). ALTIANT-Sustainability Luxury Brand Index 2021. ALTIANT. Retrieved 24 November 2021, from https://altiant.com/2021-sustainability.

Allaire, C. (2021). Stella McCartney Made an Impassioned Call for Sustainability in Fashion at the G7 Summit. Vogue. Retrieved 24 November 2021, from https://www.vogue.com/article/stella-mccartney-g7-summit-fashion-sustainability.

Kelly, E. (2016). EU Commission takes legal action against Italy over animal testing. Science|Business. Retrieved 24 November 2021, from https://sciencebusiness.net/news/79769/EU-Commission-takes-legal-action-against-Italy-over-animal-testing.

Guglielmi, G. (2021). Ban on animal testing still in limbo. Nature.com. Retrieved 24 November 2021, from https://www.nature.com/articles/d43978-021-00009-6.

Prada - Sustainability Rating - Good On You. Directory.goodonyou.eco. (2020). Retrieved 24 November 2021, from https://directory.goodonyou.eco/brand/prada.

Fashion Transparency Index 2021. Fashion Revolution. (2021). Retrieved 24 November 2021, from https://www.fashionrevolution.org/about/transparency/.

 

Illustrations

LV logo:  https://www.showstudio.com/contributors/louis_vuitton

GUCCI logo: https://www.designyourway.net/blog/graphic-design/gucci-logo/

BURBERRY logo: https://www.thecut.com/2018/08/burberry-new-logo.html

CHANEL logo: https://www.agneseangelini.com/coco-a-woman-a-brand/

HERMES logo: https://wakan-sib.com/en/wakan-spirit/

STELLA M logo: https://flirtology.com/clients/stella-mccartney-logo-3/

Note: Rest of the drafts were done on a word file.