SSI Group has formed a joint venture with Prada Group through its subsidiary Stores Specialists, with the luxury retailer looking to expand the Italian firm’s presence in the Philippines.
Dubbed ‘Prada Philippines’, the new venture will see SSI Group and Prada Group initially invest PHP 16.6 million (USD 299,724) and PHP 25 million in the joint venture, respectively, before raising the total investment in Prada Philippines to PHP 152 million and PHP 228 million at completion.
Under the agreement, Prada Group will own 60% of Prada Philippines, while Stores Specialists will own 40%. The joint venture will commence from the beginning of 2024, according to a filing on the Philippine Stock Exchange.
“The joint venture is expected to accelerate the growth of the Prada brand in the Philippines and enable operating efficiencies, as SSI and Prada transition from a franchisee-franchisor relationship to joint venture partners,” the company said in a statement.
Based in the Philippines, SSI Group explains that is has been partners with Prada since 2013 and already operates two stores on the outskirts of Manila. In addition it also operates a portfolio of around one hundred brands including many luxury labels in the Asian market. These include Balenciaga, Boss, Bottega Veneta, Cartier, Loewe and Alexander McQueen, as well as mid-range players Gap and Spanish groups Inditex and Tendam. SSI Group, which was founded in the 1980s and is headed by Zenaida R. Tantoco, has over 550 points of sale.
Prada Group owns the Prada, Miu Miu and Church’s brands. In the first nine months of 2023, its sales rose by 17% to €3.344 billion, 35% of which was generated in the Asia-Pacific region.
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