e heir apparent and future CEO of Prada Group, this role gives him operational experience in turning around a complex brand,” said Mathew Dixon, a partner at executive search firm DHR Global. Why Lorenzo Bertelli? Bertelli is currently Prada Group’s chief marketing officer and head of corporate social responsibility. While he may not have the decades of merchant experience typical of a luxury CEO, within Prada Group, he has quickly built a reputation as a strategic thinker with a strong command of brand positioning and disciplined storytelling. “His stated approach of ‘no big shake-ups for at least a year’ indicates a considered integration strategy that prioritises learning before restructuring. However, once he’s seen enough, I’ve no doubt he will be bold and decisive with his actions,” Dixon added.  “He’s proved through his work with Miu Miu that he possesses a strong aptitude for brand and storytelling, which Versace needs to become relevant again.” What to expect? Versace’s stature in the luxury ecosystem has always been paradoxical. Culturally, the brand remains omnipresent while commercially, its performance has wavered.  In the last quarter of 2024, Versace’s revenue fell 15 per cent year-on-year to US$193 million. Losses are expected to continue through this year before the brand breaks even. Versace has a network of 230 owned boutiques and more than 400 licensed stores worldwide. “Versace is a brand with strong cultural equity but commercial fragility. Bertelli inherits a business with an erratic pricing architecture and overexposure to wholesale and outlets,” Dixon said.  This disconnect is precisely what attracted Prada. Speaking to Bloomberg, Bertelli called the acquisition a “strategic choice”, emphasising that “the brand is much bigger than its revenue.” The mission, he added, is to bring the business “back to the greatness of the brand that it once was”. The deal also reflects a broader movement inside global luxury: the consolidation of power among family-led European houses, especially as M&A pressures intensify and geopolitical volatility reshapes global demand. “As seen within LVMH, this move underscores a trend for family-led groups doubling down on control and identity amid global consolidation. Bertelli’s appointment is all about Prada shaping its future in an era of scale,” Dixon said.  “Turning around Versace is more important than just revenue creation. If Bertelli delivers success, he preserves an Italian icon, a national treasure, and the halo impact on Prada Group will be significant,” Dixon said.  In an interview with Reuters, Lorenzo Bertelli raised eyebrows when he said Prada would consider additional acquisitions after Versace, and notably did not rule out interest in Giorgio Armani. He stressed that “nothing else is on the table today,” but the comment was enough to spark speculation. Since the death of Giorgio Armani in September, the brand’s future is in flux. The founder’s will requires that heirs sell or list at least 15 per cent of the company within 12 to 18 months. Prada Group has historically been cautious in dealmaking – some earlier acquisitions and partnerships were slow to deliver returns. The Versace deal is a chance, Dixon concluded, for the next generation to “change the narrative” around the Bertelli family as investors. Further reading: Why the US$1.4 billion Versace deal is about more than fashion.