Luxury retailer Prada Group has announced plans to expand its presence in the Philippines through a joint venture with SSI Group. The new venture, known as ‘Prada Philippines’, will involve an initial investment of PHP 16.6 million from SSI Group and PHP 25 million from Prada Group. The companies expect the total investment in Prada Philippines to reach PHP 152 million upon completion.

According to the agreement, Prada Group will own 60% of the joint venture, while Stores Specialists will own the remaining 40%. The partnership is set to begin in early 2024, subject to approval from the Philippine Stock Exchange.

The aim of the joint venture is to accelerate the growth of the Prada brand in the Philippines and improve operational efficiencies. SSI Group has been a franchisee of Prada since 2013 and currently operates two stores near Manila. Additionally, the group manages several luxury and mid-range brands in Asia.

With over 550 points of sale, SSI Group, led by Zenaida R. Tantoco, has a strong foothold in the Philippine market. Prada Group, the owner of renowned brands such as Prada, Miu Miu, and Church’s, generated 35% of its revenue in the Asia-Pacific region in the first three quarters of 2023.

The joint venture between SSI Group and Prada Group is expected to unlock new growth opportunities in the lucrative Philippine market. By transitioning from a franchisee-franchisor relationship to joint venture partners, the companies hope to achieve synergies and maximize their potential in the region. With their established positions in the luxury fashion industry, the collaboration is poised to drive significant success and further expand Prada’s presence in the Philippines.

Useful links:
1. Prada Group Preliminary Consolidated Revenues
2. SSI Group Official Website