Contrasting Luxury Identities and Strategic Coherence: A Case Study on Consumer Perception in the Prada-Versace Acquisition

In recent years, the luxury industry has undergone deep structural and cultural transformations driven by globalization, digitalization, and changing consumer expectations. In this context, contemporary maisons must reconcile heritage and innovation while preserving symbolic coherence and competitive distinctiveness. Mergers and acquisitions (M&A) have become strategic tools for sustaining growth and redefining brand architectures, especially in markets where cultural meaning and narrative capital are central to value creation. This thesis analyses the acquisition of Versace by the Prada Group (April 2025), interpreting it as both a strategic operation and a symbolic integration within the Italian luxury system. The objective is to understand how two maisons with markedly different aesthetic languages, values, and identities can coexist within a unified portfolio without compromising authenticity or perceived prestige. The theoretical framework draws on studies of luxury consumption, symbolic value, brand portfolio coherence, and cognitive concepts such as the Veblen Effect, here considered as a possible interpretive lens rather than a predetermined behavioural mechanism. Chapter 1 compares the histories, aesthetic codes, and narrative identities of Prada and Versace, showing how both brands—despite their contrasting styles—respond to common symbolic needs related to status, recognition, and identity construction. Chapter 2 reconstructs the strategic and cultural logic of the acquisition, reading it as a form of “soft integration” that preserves creative autonomy while leveraging industrial synergies, aligning with broader consolidation trends in global luxury and reinforcing the emergence of an Italian luxury hub. Chapter 3 outlines the empirical research design, based on a qualitative questionnaire administered to individuals familiar with both brands. The aim is to analyse external perceptions regarding identity coherence, symbolic compatibility, and the potential impact of the acquisition on the positioning of the two maisons. Adopting a consumer-oriented approach makes it possible to move beyond internal managerial narratives and explore how audiences interpret the relationship between the brands. Chapter 4 presents the interpretative analysis of responses, evaluating whether the theoretical constructs discussed—such as symbolic value, status signalling, and perceived coherence—emerge in consumer perceptions. The results contribute to understanding how acquisitions in the luxury sector function not only as financial transactions but also as processes of cultural negotiation and identity alignment. Overall, the Prada–Versace case illustrates how strategic complementarity and narrative diversity can be integrated within a single group, offering insight into the evolving dynamics of internationalization and brand management in contemporary luxury.