Prada Group’s Strategy for Versace

The Prada Group’s ability to maintain fashion activity, especially with Miu Miu, and to pivot to entry-level products without impairing its luxury positioning, was a key strength during the luxury downturn. This strategy can be applied to Versace, which is now under the Prada Group.

Maintaining Relevance

Luxury goods analyst Luca Solca states that the main priority for Versace is to remain relevant as a brand. This task falls on the shoulders of Dario Vitale and his team. The spring/summer 2026 collection, which featured portable high-rise buildings, blazers, and knits in bright colors, was a first step in modernizing Versace and defining its customer base.

Modernizing the Brand

The collection was an effective, albeit divisive, attempt to update Versace’s image. According to Nicole Phelps, Global director of Vogue Runway and Vogue Business, the clothes seemed to be tailored directly to Vitale’s own taste, with a preference for vintage and layered looks. The collection also catered to a diverse range of body types, which is an important aspect of the brand’s modernization.

Merchandising and Marketing

While Vitale shakes up the design, Versace needs to focus on strong merchandising and marketing to support the new direction. This includes gradually introducing new collections, managing existing product lines, and backing these collections with targeted marketing campaigns. There are also opportunities to develop a more consistent core offer and potentially expand Versace’s leather goods category.

Distribution and Retail

Experts suggest that Versace needs to rethink its distribution strategy, including a shift to retail with full-price products, reducing wholesale and off-price sales. Additionally, there is a need to invest in updating and renovating the Versace retail network. The brand also has international potential, particularly in key regions such as the Middle East and Asia, although it needs to assess how well it fits into consumer tastes in these regions.

Long-Term Goals

In the long term, Prada’s challenge is to refine Versace’s position in the luxury market. Despite being a well-known name, Versace is still a relatively small company that should be bigger. Prada needs to work to ensure that Versace reaches its full potential, which will require careful planning and execution.