While normally luxury Italian fashion houses have a healthy rivalry, Prada and Ermenegildo Zegna have leaned into a little collab.
👉 Background: Many of Italy's luxury brands, like Prada and Ermenegildo Zegna, have been around for over 100 years.
👉 What happened: While normally these luxury Italian fashion houses have a healthy rivalry, Prada and Ermenegildo Zegna have leant into a little collab. But it ain't a collab on clothing... it's a collaboration to buy stakes in one of their suppliers that specialises in cashmere and knitwear.
👉 What else: Back in 2021, they also collabed to buy a shared stake in a luxury yarn manufacturer. And, LVMH and Gucci-owner Kering have also been makin' moves - snapping up suppliers too. Because for a luxury brand, the "Made in Italy" heritage is critical.
💡For luxury brands, maintaining control over their supply chain is crucial to their business model.
💡It ensures that products reach stores on time and that the materials meet the brand's quality standards... effectively their reputation.
💡By investing in their suppliers, these luxury companies are securing the bag aka their supply chains - but also fostering local businesses and helping them grow.
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