Host: Hi everyone. Today I'm in Milan, the heart of the Italian fashion and I'm in extremely good company with Andrea Guada, CEO of the Prada Group. Now Andrea took over 3 years ago, stepped into the Prada shoes and at that time the group has grown quarter by quarter. Uh Miu is arguably now the hottest brand in luxury and you just bought Versace. So well welcome.

Andrea Guada: Welcome and uh happy you're here.

Host: Very good. Now Prada is more than 100 years old. What what's the DNA of Prada in short?

Andrea Guada: You know Prada is uh is a unique brand. It's uh PRA is a point of view. Prada is an opinion. Prada is culture. Prada is totally winded in certain cultural pillars such as art, architecture, literature and uh has always an opinion. And how do you see that in the brand?

Host: You can see that in a brand in any aspect in any location in anything we do uh there is nothing which is not thought. There is nothing which you can spot details which are out of place. There is nothing that we do by chance and not linked to a thought and to an opinion about what's going on in the society. So what's constant and what is changing in the realm?

Andrea Guada: Nothing is changing.

Host: Nothing is changing. Obviously the world is changing. uh the trends are changing, fashion is changing but the brand is always that same thing. How is fashion changing now? How is the luxury gives it?

Andrea Guada: You know, I think this industry is upside down. What does that mean?

Host: This industry has uh gone through a couple of decades of constant growth. let's go to any textbook that's not possible that's not feasible

Andrea Guada: and uh I think we were all happy and uh this industry has grown by three times four times five times in the last only 10 15 years. So I think that now we have to go through a period of normalization. We have to go through a period where maybe we have been a little bit spoiled. So we have to go back to certain uh on certain aspects of of the business. So what's normalization? What's the new normal?

Host: I think it's the old normal. This is what we have to look for. It's not the new normal. It's the old normal. Luxury is exclusivity, selectivity, is value, is dreams, it's experience, it's hospitality. This is what we have to do and this is what it has always been.

Andrea Guada: So how do you how are you adapting to the new

Host: the new old?

Andrea Guada: You know, I can tell you that there are certain things which are very visible. Uh we have gone through a refurbishing of a huge store in Hong Kong where we would have followed our usual logic of one floor for men, one floor for women, one floor for accessories. Instead we have decided to allow uh one entire floor to be an apartment to be a place which is totally uh dressed by our creative directors. So it's it's a unique spot where you can spend time where I you can uh you can have friends for dinner for lunches spend time for your um birthday and uh we're happy about that and we're happy to to offer you very special exclusive uh products

Host: and this is the old normal

Andrea Guada: right you you talk about change at the same time I hear you talk about the importance of patience. Just how does patient play in? You know, I think that the winning brands are those brands where there is a constant positive tension between brand management and creative dire direction. And this means patience. This means listening to each other. This means debating. This means taking the proper time to take decisions on how and where the brand is going and where creativity is going and this is long term cannot be short term. In which brands in the world are you seeing that creative tension? I can talk about my brands and we have it.

Host: We have it. We have uh long-term solutions. uh we we don't have a creative director coming in and going out. We have longterm commitments and that's the only thing that the consumer will pay in the long term. Then you can have a success here XSX there but that's short term.

Andrea Guada: Talking of uh uh creativity, you started MU from from scratch right in 93 and it's it's an extraordinary brand growing very very fast. Why why is it so successful? You know, Miumu has uh I always say Miumu is an inclusive brand.

Host: Miumu is uh is women only. It's uh imprinted in a young lady, but it's inclusive. Uh, you don't feel wrong in wearing mu on a Monday morning or on a Saturday night. You don't feel wrong being 25 years old and 50 years old. You don't feel wrong with uh with Miumu. You say that it's rebellious. H how it's out of the schemes. It's out of the fashion logic. How large can a brand and still be rebellious and out of the fashion?

Andrea Guada: You know, uh I think it's uh if we look to ladies only brands, there are brands which are four, five times bigger than us. So I'm not alluding that we have to be there but there is space to grow.

Host: But what is important is that we have somehow attracted a lot of brands in our field. We don't have to move from our field. Typically, you see these threeear cycles. Do you think we'll see that?

Andrea Guada: You know, this is a fiveyear cycle which has lasted longer than what we expected and uh we need to be ready for normalization. We need to be ready for normal growth.

Host: And uh you know, you're never ready for that. But we have to be ready for that. We don't have to be complacent. It's a tough. We have to be pretty masochistic.

Andrea Guada: What are the tools you use to be masochistic?

Host: You know, it's it's no. Uh my my usual answer is no. Uh we're offering you another store. No, we're offering you this opportunity. No. So, this is what we do. We had 170 stores 3 years ago. I think we got 176 today with the kind of growth we had. So I prefer to enlarge certain stores but I don't want new stores. In five years time maybe we will have 180 stores, 185 stores but that's it. And that gives you the idea that we have not open the gates to success.

Andrea Guada: We have not gone in in new categories. We're not open to men. It's us. This is what we are. This is who we are. And these are the the the who we want to talk to. Tell me about emotions and dreams.

Host: It's all about emotions and dreams. If I'm you know I'm always and this is this is happening since I was selling white goods. Can you imagine?

Andrea Guada: Because I have known you for 20 years and and you have talked about this all the time

Host: and and this is it. If if I'm able to tell you a story that makes sense, if I'm able to get your emotions going, it's much easier to have your hand going to the pocket and getting the wallet out.

Andrea Guada: But I need to be absolutely credible and I have to be into the brand and I have to engage you. And this is everything we're trying to do.

Host: Where did you learn storytelling?

Andrea Guada: You know, I think it's uh I think that in management

Host: like did you have a grandfather who were telling you when you met? If

Andrea Guada: if I take my father, my father probably was saying five words in a day.

Host: So it was not a storyteller. I can tell you that there are two things in management which I which I particularly trust. One thing is that people and emotions are the vehicle to everything. The second is when you're able to manage the mix, your profit and loss is solid.

Andrea Guada: Mhm.

Host: And these two things go much together because when you're telling a story, you need to understand if you're going towards an enterprise or if you want to dream of €100,000. And it's not anymore how you're dressed, how you are entering a store, who you are because I mean tech has totally revolutionized the society and how people are coming into stores. And sometimes you you can be really misinterpretating what's what's happening in the store right now. The world is changing and the media picture is changing and we got social media and we got attention spans like ants. How does the storytelling art change?

Andrea Guada: You know, I think there are two things. First of all, uh when people are asking me how are we using artificial intelligence, the main part we're using artificial intelligence is in our CRM. So,

Host: customer relationship management. Yes, we are working like hell hours and hours to really understand which message to which people and how to personalize that message to that person in that moment.

Andrea Guada: And the more you are able to do that, the more business becomes hot.

Host: Okay. So, I'm coming into your store. You know my background. you know what I bought with you but even before you're coming to my store

Andrea Guada: okay

Host: that's where everything starts you sell me what dream you sell me

Andrea Guada: so you know I think artificial intelligence today allows you to go into your data and really what I always say look alike so you bought those these things to me

Host: I'm coming out with this new drop this new package these new ideas and I think these new ideas have this characterist istics. How can I match these things and how can I match how hot you are in that moment to come into my brand and buy? And when I'm able to connect this, wow, I have conversion rates which I've never seen in my life.

Andrea Guada: Well, I I intend to buy a shirt in Milan. So, let's see whether it's going to be a product shirt or not. I do. Where does this fit in with quiet luxury? you know uh I do not know where where if it is uh what is quite what is quite luxury

Host: you know I I am not able to answer to this question I don't think I mean there there is brands which are the the real thing is how credible is a brand

Andrea Guada: I mean we're seeing brands going up got brands going up

Host: pay for a brand to be credible over time

Andrea Guada: you know it's what I was saying at the beginning it's that respect of the brand

Host: with a creative uh job which makes sense at that moment. How do you get young people attracted to the brands?

Andrea Guada: I think that this is the the biggest concern, the biggest opportunity and it's a great amount of our job. We're out today exactly today with a uh re island uh period

Host: which which is this. So as you know Prada has been known for its nylon products since ages. Then sustainably comes and we have recreated a uh nylon which is a which we call re nylon which is totally be sustainable

Andrea Guada: and anything you look at you can read something about that fiber. We are out with a communication today which is around the education around pollution in oceans, nylon and plastics

Host: and we are in our stores with a completely and unique collection of reylin

Andrea Guada: which we have linked to a communication to the younger generations.

Host: So using those media attracting those kind of uh let's call influencers but also having certain price points is and it's working really well. Is sustainability dropping down on people's preference list? Not on y not on young people. Not at all for young people is you are you don't have to think about that you are in that sustainable world you are in digital you don't have to think about it then if we go in government and politics maybe yes moving on Versace

Andrea Guada: uh iconic has been owned by Americans uh for seven years now and you are buying it back to Italy why why did you buy

Host: It's an opportunity. We were not out for acquisitions. We feel that the two engines we had can take us somewhere close to€ 10 billion euros as an ambition. What's the DNA of Versace? Versace is something we like because again it was born in culture. It was born in this mana gretcha has this Greek ancient Greek influence on Italian culture

Andrea Guada: and it's winded in pop. Versace invented glamour. Versace invented pub. Versace invented the great models. Versace invented music in the shows. So it's this spin which is very different from our portfolio.

Host: But it's in our DNA that we love that everything goes and starts from culture. So when you have these things with Glowmore and the things you mentioned and you take Donatella Versace out of it, does the brand still contain it? I

Andrea Guada: think that Vach is not out is part of uh our team in uh giving an image and networking which we love. This is the first. Second, I think that Versace has incredible long roots that you need to respect, that you need to keep, as I said, with that kind of tension and being proper in 2026.

Host: I just read an African proverb this morning that if you got long roots, you could take more wind, you know.

Andrea Guada: I agree. Um now what did you see in Vasachi and that other people didn't see?

Host: I think that many people have seen what we have seen but we're ready to take the tackle. We're taking ready to take the challenge.

Andrea Guada: It's not an easy job has been has been a little bit mismanaged as a brand not as a business and we're ready to go. and we feel that we know how to do a uh brand business. We are patient.

Host: We don't think that we have to be successful tomorrow morning.

Andrea Guada: But we need to plant seeds. We need to nurture. We need to have the right people in place and the team is ready to go. So that is something that we have done pretty quickly. And you have a new creative officer, Peter Mullier.

Host: Yeah. And uh this is uh again this has to be a really longterm relationship.

Andrea Guada: How do you think he will change the expression of the brand?

Host: We will see.

Andrea Guada: We will see.

Host: Around creativity, there is never anything that is already designed or written out.

Andrea Guada: Is there like a uniform creative process across the brands? How does a creative process work?

Host: No,

Andrea Guada: I think that there is uh people who are uh working uh and taking a lot of times uh to to prepare. There are people who are impose last minute. There is people who are doing things and uh uh crashing them and redoing things and then crashing them and redoing things and crashing them and finally the last day they have what they want. So are

Host: are Italians more creative than other people?

Andrea Guada: I wouldn't say so. Uh but if we go statistically for sure since uh since uh 1500 I think we have been pretty creative.

Host: Yeah. Both in art and in music. Um you mentioned 10 billion. Why is it important for you to grow the size of the total group? You know we have I get into you had a stint at uh at the LVMH group. Are you trying to recreate the big conglomerate?

Andrea Guada: Absolutely not. And the way we work, the way we are organized, it's pretty different.

Host: But we're not in a niche business. So we need some scale.

Andrea Guada: And we think that on one side being very distinctive with our brands and having a certain kind of scale allows us to protect ourselves.

Host: This is what we think. How do you think about uh um you know pricing when something is hot and you know it's tempting to price it up? Just how do you think about it? Because I'm seeing some brands and I'm just I'm just amazed by the price points.

Andrea Guada: My first answer would be I don't care.

Host: Yeah. That is am I able to get you your heart, your passion, your dreams, your emotions somewhere. If I'm able to do that, full stop.

Andrea Guada: Each one of us is spending I don't want to say money, could be money, could be time in so many different things we love on a bottle of wine. I mean, let's discuss it. or on a incredible room in front of the ocean. There are many different ways we can spend our money.

Host: And if the issue is once you talk about price, it's evident I made a mistake in whatever I'm doing in luxury. What do you mean?

Andrea Guada: I mean that you should never talk about pricing because you should be so happy that you give me your credit card without even asking what is the price. This is what we have to do.

Host: Yeah, it happens with some people but it doesn't happen with everybody. Right.

Andrea Guada: Sure. And maybe maybe this is why I'm saying all normal. Maybe this industry has gone a little bit too far out. This industry has lost one consumer out of five in the last four years,

Host: three years. It's a lot.

Andrea Guada: I mean, how are the dynamics in China changing?

Host: I don't know if they are changing. Uh, for sure we have gone through this uh unbelievable evolution.

Andrea Guada: Then North America stopped consumer digested

Host: and then we have seen a kind of new dynamics new positive dynamics. Same thing is happening in China today. So maybe we had gone a little bit too far out two years of digestions and now we are seeing a kind of plateau and slightly positive dynamic.

Andrea Guada: And I would say that even because of the wars, Europe today is the animal or is the region that is digesting the great growth had. Europe is by definition a touristic market and today I mean Americans are coming because they think the war is in Europe. uh Asians cannot come because uh I mean it's so difficult today to fly over east west so Europe I think will have a little bit of normalization

Host: any reflections on the future of Europe

Andrea Guada: complicated I mean uh today uh today Europe is in the middle of uh it's in the middle of it's the week in between big powers I mean It's unbelievable to see that our economics, our macros, it's probably the slowest, but we have the heaviest currency today. I mean, it's uh it's uh it's complicated. uh I don't think I am the person that can tell you what will happen macro to Europe but for sure what I can tell you from our point of view that I hope that we are still able to demonstrate to the world that coming to Europe makes sense

Host: in a touristic manner but today Asians are really I mean compared to 2019 probably we're at 50% of what it was

Andrea Guada: compared to 2022 22 23 Americans are probably minus 20 minus 25 compared to that. So I think that we need to rethink. Move on to um leadership. How would people define your leadership style?

Host: Mine?

Andrea Guada: Yeah.

Host: Ah you know uh one day I read a book. I don't usually read the I don't usually read the business books at all but uh there was a lady that was uh giving us a a kind of session in United States and I read her book and she was talking about resonant leadership which I love. What is it? It is convincing your mind and convincing your heart that we are all in a journey with a very clear mission and allowing everyone to express to their best.

Andrea Guada: This is what I think I'm doing every day. Are you as immersed in Prada as you were in Luxodica in Italy?

Host: No, I think more age. Why?

Andrea Guada: Because we are in a long generation evolution phase.

Host: So we have a very solid uh founders mindset very strong and on the other side we also need to prepare the company for the long term.

Andrea Guada: And what is fantastic by this Italian founders and family in Italy that they have said this is the root never never seen in Italy. This is the root. It's very clear Loro will be the leader in the long term. Andrea is helping this journey and everyone knows it.

Host: Mhm.

Andrea Guada: And this is what we're trying to do. And how is it to be a leader then when people know that you are kind of the bridge between generations?

Host: I don't care. Either you are or you're not. And uh I don't think I have any issues with that.

Andrea Guada: Why were you so keen to take this job?

Host: You know I know the family since 20 plus years. We have built the Brada brand in our from scratch.

Andrea Guada: to over a billion.

Host: It's it's a big number for eyewear. And I love the way uh Mr. Bertelli was uh working on the products and collections. I love the way the spin on certain image events and uh coming into these places and looking on how Mrs. Mucha was working. So I always love them.

Andrea Guada: So you got to know them through the eyewear.

Host: Yeah.

Andrea Guada: At yeah

Host: and we know knew each other very well and uh we had other opportunities to come to work together earlier but somehow I always said that I was not ready for that kind of cultural landscape that Prada group was.

Andrea Guada: Then Lorenzo joined in 201718 and we had this conversation again in 2022 and a lot of things started to change such as uh the way the brands were much more clearly positioned.

Host: A completely new mission on sustainability.

Andrea Guada: completely new mission on the consumer and cultural behaviors

Host: in the group. So we were really evolving in that way of working and way of relationship between people in the company. Now I have seen it and I said I'm ready to help.

Andrea Guada: When cultural relationships what what was changing there? Prada group as you know and it's very well known in the industry has been quite a hard group which is fine which I like but then I love to allow people to express themselves

Host: and I didn't think that at time that was feasible

Andrea Guada: when I joined I thought it was feasible and I was right so how are decisions made it's Wow.

Host: If you participate to certain meetings, you say, "These guys are crazy."

Andrea Guada: Mhm.

Host: The debate is strong, but I love it. It's real expression and can even last 10 days of

Andrea Guada: you need to be strong in this uh in this uh in this group. And uh once you understand the logics, it's really nothing personal. Not as the Americans say frequently, nothing personal, then they kill you. But it's uh it's uh it's more a uh it's really a kind of opinion debate. Does that kind of decision- making lead to better results? You think? I think so. Why? Because takes the best. It's not a lower compromise. It's an upper compromise.

Host: Compromise is one of the most fantastic behaviors of human beings. But it has to be in the upper side. How are you a different now compared to when you were younger? How old are you now? You are 60. You're in your prime.

Andrea Guada: You know, it's uh I've been lucky.

Host: It's 25 years I've been a co of public companies

Andrea Guada: and uh today I'm quicker. Unfortunately, in so many meetings I already know what people are going to tell me, but this is part of the age. Do you still listen to them?

Host: I think I I'm very good in listening to what they're not telling me. Mhm. M

Andrea Guada: the other day I finished up a conversation with one person and uh we stayed together for half an hour and I was saying I see you strange these days and he started talking at the end of the meeting I say thank you especially for the things you have not told me now

Host: what are the kind of things that people don't tell you

Andrea Guada: you know sometimes people are not always ready to confront on tensions on problems on issues lose. While it's so easy to say, okay, we have a problem. I don't care where it comes from, but we are a problem. Let's face it. Let's understand and let's be quick. Let's debate as much as we want, but then let's be quick. I hate that formal slide management. I cannot stand it anymore. So, I introduced certain in this last year certain rules. So you cannot come with a budget with more than 10 pages.

Host: And I love the guy very funny. He came with 10 A3 pages so he could light more things in. But this is what I love now.

Andrea Guada: Do you not have overhead slides like presentations? We have no

Host: but short keys. Yeah.

Andrea Guada: We can cut at least the first 15 minutes. M

Host: I don't need to go to Adam and Eve again every time.

Andrea Guada: In what other ways have you developed as a leader you think?

Host: You know I think that I still think that energy beats experience and I um I want to prove it every day. So this things that if you don't have an experience you cannot hold that position. I don't believe it. But on the other side, I have that experience today. I mean, being 25 years as a co where every bloody day you're seeing your result of the day before, you learn so many things and I try to use it as much as I can. Where does energy come from, you think?

Andrea Guada: I think I'm pretty mistic. So, uh, you know, we're having a great sale yesterday

Host: and I say, "Oh, How do we come next year?"

Andrea Guada: So, I'm a little bit masochistic, but I but I do my best to celebrate.

Host: That's one of my issues. Somebody introduced me to the uh the concept of high agency people. So people who figure out where they go and they are forceful and they use technology to get there and it's just struck me lately how big difference is between people who actually do things and the rest.

Andrea Guada: You know I think that I think that technology is there. I think that there is more technology than what we are able to use today.

Host: So my constant mission is to make the culture of the company evolve. The more we are able to evolve, the more we become executors and able to use all the technology available. How are you changing the corporate culture?

Andrea Guada: a problem you know my desire is that one day I ask to people what has changed and they say everything and then I say when I don't know so it's what I was saying before it's a self expression this is what I'm trying to do every day what is need to be done allow people to

Host: have real power on things allow people to do things allow people to make some mistakes, allow people to give their opinions. I love when people debates, then I say, "Let's take a decision. If you're not able to take a decision, I will take a decision."

Andrea Guada: This is what I love. What should we wear this summer? Prada or Mu? But what kind of style? You know again Prada is one thing and uh Miumu is a different thing.

Host: With Prada we have decided to go we we have taken a decision uh to go with a color. So we have decided that uh for us this summer is white and we have gone all in and this will be very visible. And why is the summer white? You can ask this question to Mrs. Buch, not to me.

Andrea Guada: And how risky is it for a firm to be all white?

Host: I don't care. It's not risky. This is our life. We we got I mean, we have a point of view.

Andrea Guada: Uh it's never risky. It's risky to to to follow the trends. That's risky to be

Host: I guess I guess it's less risky to be white than pink,

Andrea Guada: you know. Oh, I think it's uh I think it's uh you need to always in your brand, in your positioning, in your identity. I need to surprise you. I need to comfort you and we need to do something new together.

Host: Well, you're not very white yet. So, uh we'll see this summer. Uh what do you what do you read? I read uh uh basically novels

Andrea Guada: and uh uh I go back rereading things frequently such as I am rereading the metamorphosy of Kafka today.

Host: Uh and I have just finished to reread the castle. Mhm.

Andrea Guada: I think that these guys had understood our contemporary world very well and it's fantastic to read them again.

Host: Me waking up as a cockroach in the bed.

Andrea Guada: Yeah. But I mean uh this is what what is happening to the society.

Host: Yeah. How do you relax?

Andrea Guada: So easy. This is uh my very real talent. As soon as I'm out of here, I'm out of this

Host: black and white. And what do you do then?

Andrea Guada: I swim. I eat. I travel. And I used to spend a lot of time with my family, but my three kids are grown. So uh I try to organize things so that they accept to do that with us.

Host: Do you cook? Uh in my next life, right,

Andrea Guada: I will be a great chef. And what are the other things you will do in your next life?

Host: you know, uh I think that I think that life has become much longer than before. So I think that my next life is behind the corner. So uh I would love to continue to work

Andrea Guada: heavily fewer days

Host: and my dream would love to be to mentor young fantastic cos and what would be your advice to these young people?

Andrea Guada: Be patient. Be patient. This generation is not patient.

Host: I love them, but they're not patient.

Andrea Guada: Okay. Thank you. Thank you.