VALVIGNA, Italy — A vertical industrial structure is nearly par for the course today in the posh industry, but Patrizio Bertelli, executive director of the Prada Group, on Thursday made a degree of letting reporters gathered at the corporate’s plant in Valvigna, Tuscany, know that he is just not jumping on the bandwagon — quite the opposite.

In his usual feisty manner, Bertelli said that back within the ‘90s when he began constructing the network of plants that has grown in time to comprise 24 industrial facilities, of which 21 are in Italy, he was challenged by popular opinion. He recalled that he was told then that his strategy “didn’t make sense, and folks wondered why I’d not simply turn to the prevailing manufacturers. Today, I see you’re here and the press is fascinated with our factories. Why did you modify your mind?” he demanded.

Bertelli blamed “a general lack of respect for the factory” back then, which he viewed as an obsolete “attitude from the nineteenth century on the exploitation of labor.” He trumpeted his decisions from way back, “which have impacted the life of individuals,” investing in structures “where persons are comfortable to work.”

The primary artisan that he employed, Lisetta Mazzoni, is now 75 and still works for Prada, he said proudly, and “she has no intention to retire.” That was a undeniable fact that later that day she firmly reiterated to the press.

“The factory represents 50 percent of the life of individuals and you realize that your strategic decisions as an entrepreneur will impact the life of individuals,” Bertelli continued. “We’ve made the factories a snug place. The factory is a family. It sounds banal, but we’ve seen births, divorces, lives spent together that at times are complex, and journalists never spoke well of factories, also because they were identified with the entrepreneur, while often the factory is even higher than the entrepreneur.”

He prided himself on creating the group’s own pipeline, from product to retail, a model that “the French interpreted and followed. It’s an infinite commitment, nevertheless it’s an asset which I feel of in a long-term frame, 20, 50 years, not five.”

As an entrepreneur, the challenge is “to know the expectations of a young employee today, who’s entirely different from an adolescent within the ‘90s. People must feel integrated and a part of the factory’s every day life, given more responsibilities.”

He pointed to his son Lorenzo, head of corporate social responsibility, who is predicted to take the lead in the long run, and said that he “may have to take care of changes in Africa and India, recent technologies, robotics, the whole lot that’s manual, but the actual challenge will likely be to integrate cultural changes of young people.“

His son admitted “the one pressure after I get up is to ensure the salary” of the group’s employees, now totaling 13,768. “The remainder doesn’t count.”

The corporate has grown to succeed in sales of 4.2 billion euros last yr, with a presence in 70 countries and 612 directly operated stores. While his father and mother Miuccia Prada have all the time “been enthusiastic about their job, they did what they liked and rejoiced, and the results of having fun was growth, but additionally they feel the responsibility of paying the salaries. If we follow with the identical approach, listening to people and being curious, results will proceed to be positive. I feel that the values of our company are aligned with the evolutions of society today. I connect the dots and hopefully will give even higher visibility to what they’ve done.”

Lorenzo Bertelli, along with industrial director Massimo Vian, headlined the event of the day, specializing in industrial strategy and sustainability through tours of the Valvigna plant, a one-hour drive from Florence, and the nearby Levanella logistic hub. “Our motto is to be drivers of change and that is founded on three pillars: the planet, people and culture,” he said.

Vian praised the great thing about the Valvigna factory, which is stuffed with natural light, surrounded by gardens and plants, which ends up in “comfortable staff, and the excellence of products.” The ability, which was accomplished in 2018, spans over 4 buildings and 356,400 square feet and employs 770 individuals. Vian said one hundred pc of Prada and Miu Miu samples are made in-house. There’s also an archive with 45,000 references.

Vian said that, from 2019 to the tip of 2022, investments totaled around 140 million euros, of which 120 million euros were in capital expenditures, and 22 million euros in acquisitions. Asked about potential targets, Lorenzo Bertelli said, “we’re scouting for brand new opportunities in 2023,” but demurred from providing details. Vian said the group is “thoroughly positioned” within the leather goods segment, which can likely not be considered for future M&A activity.

In 2022 almost 70 million euros was invested in vertical integration, technology, industrial processes, plants expansion and efficiency improvements.

Almost 60 million euros are planned in capex investments in 2023.

Propelled by strong growth of its Prada and Miu Miu brands across all product categories, the group is on an upward trajectory. As reported, the corporate’s full-year results beat analysts’ expectations and achieved margin targets ahead of schedule. In 2022, net profit soared 58 percent to 465 million euros on the back of a 25 percent gain in revenues to 4.2 billion euros.

By the tip of 2023, Prada will double the dimensions of its knitwear factory in Torgiano, in Umbria, a protracted time knitwear manufacturing hub. It is usually planning to have a completely automated shoe production line inside its Levane plant near Arezzo in Tuscany.

Next yr, the group is eyeing organising a recent leather goods plant near Siena.

Consistent with its sustainability initiatives, in August Prada will work on a recent waste water treatment plant at its Tannerie Limoges site.

The Levanella hub was accomplished in December, designed by Guido Canali, who also conceived the ValvIgna plant, and it’s equally immersed in greenery. A walk-through of the positioning is impressive, comprising eight buildings, and where almost 226 people work. Inventories at the tip of March totaled around 500,000 pieces. At the tip of December, inbound traffic amounted to around 3.2 million pieces and outbound to 4.5 million units.

The group will likely be hiring greater than 400 people by the tip of the yr to strengthen its production capability and craftsmanship expertise in Italy.

The investment will help achieve greater agility and a discount in time-to-market. The group already carries out all quality checks on raw materials and finished products, and manages all logistics internally.

A substantial proportion of the brand new positions will likely be filled by students of the Prada Group Academy, where recent entrants will learn manual and craft skills.

The academy, which was founded within the early 2000s, “will grow to be increasingly crucial for the long run preservation of our know-how and the one in all the sector,” said Vian, a former Luxottica executive who joined Prada in 2020. “We feel a responsibility to speculate in young talent who will grow to be the following generation of expert craftspeople.”

Greater than 200 recent professionals will likely be trained over the following yr across leather goods, footwear and ready-to-wear.

The group can even establish a recent everlasting branch of the Prada Group Academy at its Scandicci plant, near Florence, dedicated to leather craftsmanship. Around 30 students will likely be a part of the primary program there.

The brand new positions will likely be opened across a few of Prada Group’s predominant manufacturing facilities in Italy, including around 100 recent hires in Scandicci, representing a 50 percent increase in the present workforce.

Vian admitted it’s a commitment to coach recent staff, “costly but profitable within the medium-short term. We have to be attractive and we are able to offer highly advanced technology and guarantee opportunities to grow.”

Lorenzo Bertelli said the group will communicate a recent project focused on bio-diversity soon. He also spoke concerning the progress made on decarbonization, the conversion of heating systems to electric power, and reaching 54 percent of green cars, amongst other issues. He noted that 66 percent of electricity is derived by certified renewable sources and that the procurement of raw materials represents greater than 70 percent of Scope 3 GHG emissions. The group has greater than doubled the variety of LEED-certified stores to 181.

Because of gaming, there was a considerable development within the 3D software to design ready-to-wear, where even the characteristics of the fabrics are digitalized. “This could be very necessary by way of sustainability since you save money and time in using fabrics and prototypes,” Vian said. The shoes in the ladies’s show last February were developed for the primary time in 3D, he remarked.