Prada, Versace to challenge French players

Prada, the Italian fashion major, has bought fellow-Italian brand Versace for $1.38 billion. Versace will retain its identity and it is expected that under Prada, it will gain much better prominence and market share.

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The two big names of Italian fashion, it is hoped, will give a boost to Italian fashion in the market, and pose a challenge to French fashion houses. Many of the French fashion majors had acquired Italian fashion icons like Gucci to strengthen their hold in the market.

The coming together of Prada and Versace is seen as a counter to the world dominance of French fashion. Donatella Versace, who had managed Versace and spread its wings after her brother Gianni and founder of Versace, was murdered in Florida in 1997, had stepped down before the sale as the chief designer of Versace.

She will now function as the brand manager of Versace. Between the two, Prada is a bigger player and Versace is a small player in terms of business turnover. But Versace is a big brand and that has its own market advantages.