The Business of Fashion Podcast

Episode: Prada Group CEO Andrea Guerra on Fixing the Luxury Business Model

Host: Imran Ahmed
Guest: Andrea Guerra, CEO, Prada Group
Date: November 21, 2025

Episode Overview

Imran Ahmed sits down with Andrea Guerra, CEO of Prada Group, for a candid conversation recorded live at BoF Voices 2025. The discussion delves into the challenges facing the luxury fashion industry, the enduring importance of brand DNA, and how the Prada Group navigates creativity, pricing, acquisition strategy (notably Versace), and succession planning. Guerra shares his unvarnished perspectives on the business model of luxury fashion, the pitfalls of industry trends, and Prada’s approaches amid changing consumer attitudes.

Key Discussion Points and Insights

State of the Luxury Business Model

• Cycles and Overreach:

  • Guerra reflects on two decades of luxury boom and the industry's failure to question its trajectory during that period.
  • [02:26] Andrea Guerra: “We have not asked us too many questions for two decades of constant growth ... But each industry has its own rules at the end. So we need to be happy of what we have been living, and we need to go through this.”
  • A return to "textbook" luxury values is needed, focusing on patience, longevity, and the fundamentals of brand DNA.

• On Breaking Rules and Losing Patience:

  • The luxury market has lost sight of patience and authenticity.
  • [03:25] Guerra: “There are certain things about luxury and fashion that we constantly say. One is patience. Maybe we have not been so patient. ... Maybe we have been a little bit spoiled.”
  • The industry must revisit fundamental principles, resisting the urge to constantly stretch brand boundaries.

Leadership & Prada Philosophy

• Internal Debates and Focus:
  • Prada actively encourages debate and focuses on a few core priorities: long-term brand integrity, simplicity, and delivering emotional value to customers.
  • [04:18] Guerra: “Anything can happen every day, positive or negative. ... We need to focus on few things ... your brand, it’s long term, it’s desirability ... your ability to excite dreams.”

Pricing Strategies and "Greedflation"

• On Perceived Overpricing:

  • Ahmed highlights consumer concern about price hikes (some items up 100% in five years), prompting a direct response.
  • [06:55] Guerra: “If we are here discussing prices, we have an issue. We are here for something else.…If I’m not able to sell you an emotion, then we discuss about pricing. If we discuss about pricing, I failed on the first part.”
  • Guerra blames "spoiled" brands and industry "trends," referencing inflation post-COVID as an exceptional period, but avoids direct justification for persistent high prices.

• Brand Strategy Over Pricing:

  • [09:03] Guerra: “I want to discuss about desirability, creativity, innovation, our ability to tell people about emotions. ... I don’t want to discuss about price ranges.”
  • The brand’s priority is long-term connection and cultural resonance rather than getting distracted by price discourse.

Creativity, Desirability & Miu Miu's Success

• DNA and Inclusivity:

  • Miu Miu’s sustained appeal is credited to its “rebellious” and authentic DNA, and an inclusive philosophy.
  • [11:11] Guerra: “Miu Miu is a rebellious brand since its birth ... It’s something that you want to wear every day. And it’s an inclusive brand. ... There is no distance between the brand and the consumers and the clients.”
  • New store concepts reinforce hospitality, approachability, and community, overturning luxury’s reputation for exclusivity and rigidity.

• Customer Experience in Store:

  • Miu Miu’s Bond Street London store described as a “salotto” or lounge, a social environment where guests can linger comfortably.
  • [12:49] Guerra: “It’s a place where to stay ... where hospitality, where community, where people are just talking between themselves. You can try things on. There is no stiffness.”

• Quality Perception and Influencer Criticism:

  • When asked about influencer complaints over Miu Miu quality, Guerra stresses transparency and pride in the group’s manufacturing standards.
  • [14:28] Guerra: “I can tell you that everything is scrutinized ... and I can invite you whenever you want to examine our net promoter scores and quality index on after service and being totally relaxed about that.”

Growth, Restraint, and Future of Miu Miu

• On Managing Explosive Growth:
  • Expectation of growth normalization with a disciplined approach to expansion.
  • [15:51] Guerra: “We are normalizing our growth. ... We have entered the period of 24 months of nos. ... That’s the moment where you have to resist. That’s the moment where you need patience. ... We are trying to do all of this.”

The Versace Acquisition

• Strategic Rationale:

  • Versace is complementary both aesthetically and in consumer base, with deep cultural roots and proven innovation.
  • [17:33] Guerra: “Versace is a fantastic, Italian, authentic, unique, credible brand which has a huge complementary role inside our group. ... There is a complement there.”
  • Acquisition is seen as a long-term opportunity with a patient approach to transformation, not expecting quick wins.

• Handling the Transition:

  • Immediate focus will be on stability for the brand and employees. Patience emphasized in integrating Versace.
  • [20:16] Guerra: “Stability is a very important word. ... We are going to care about everyone working in Versace ... The only thing I don’t want to happen is to kill the patience while you cure it.”

Succession Planning & Prada’s Future

• Generational Transition:

  • Guerra discusses his role in facilitating leadership transition, working with three generations of the Prada family.
  • [21:25] Guerra: “To imagine that a first generation shareholder and founder has created such a journey. ... There is no calendar. ... Lorenzo would love to have a more executive role in the Versace journey.”

• Prada’s Distinctive Culture:

  • The family’s progressive approach and the brand’s culture of open debate are key to its resilience and creativity.
  • [23:00] Guerra: “It’s a total constant confrontation and change of opinions. This is how things are born in the Prada brand. And I love it.”

• Creative and Business Tension:

  • Prada thrives on tension between creativity and brand DNA; such “positive friction” is necessary for ongoing vitality.
  • [23:57] Guerra: “Behind [successful brands] there is a history of relationship and tension between a DNA of a brand and a creativity impulse. ... In the long term must be a positive equation.”

Notable Quotes & Memorable Moments

• On What Prada Sells:

  • [25:14] Guerra: “When you are buying a Prada product, you are buying an opinion. And I’m happy that you’re buying an opinion.”

• On Core Industry Shift:

  • [06:55] Guerra: “If we are here discussing prices, we have an issue. We are here for something else. We are here for creating exclusivity. ... We are here for creating a dream. ... If we discuss about pricing, I failed on the first part.”

• On Miu Miu’s Store Experience:

  • [12:49] Guerra: “It’s a place where to stay. ... Where hospitality, where community, where people are just talking between themselves. You can try things on. There is no stiffness. There is no rigidity.”

• On Internal Debate as Strength:

  • [23:08] Guerra: “Prada is culture. Culture is discussion, culture is opinions. ... The more you’re discussed, the more you’re able to be influenced by other people’s opinions. I think this is unbelievably fruitful.”

Segment Timestamps

• Brand Realness and Cultural Involvement – [00:49 – 01:49]
• State of Luxury Business Model & Leadership – [02:20 – 06:02]
• Pricing Strategies & Industry Trends – [06:02 – 10:24]
• Creativity, Miu Miu’s Resurgence, Store Experience – [10:40 – 14:28]
• Quality, Influencer Criticism, Growth Restraint – [14:28 – 16:27]
• Versace Acquisition Strategy & Transition – [16:33 – 20:51]
• Succession Planning & Prada’s Debate Culture – [20:51 – 25:26]
• Closing Reflection on Prada’s Value Proposition – [25:14]

Summary Tone & Style

Throughout the episode, Andrea Guerra is direct, insightful, and occasionally wry—demonstrating clear conviction in Prada’s philosophy and steely resolve about returning luxury to its roots. Imran Ahmed brings a persistent, inquisitive angle, challenging Guerra on difficult topics like pricing and growth, but Guerra remains unwavering in emphasizing creativity, heritage, and culture over short-term wins or industry fads.

For Listeners Who Missed the Episode...

This conversation offers an unfiltered look into the state of luxury through the eyes of Prada Group’s CEO. Guerra calls for a refocusing on fundamentals—dream-building, emotional resonance, and authentic connection to culture—while openly discussing the temptations of industry overreach, the pitfalls and opportunities of rising prices, and the intricacies of integrating another powerhouse like Versace. Rather than offering tactical fixes, Guerra advocates for patience, creative tension, and relentless fidelity to brand DNA as the path forward for Prada and the wider luxury industry.