Many fashion brands are investing in the improvement and control of their production line. The Prada Group, for example, has announced the acquisition of 43% of the historic Conceria Superior, one of the leaders in high-end calfskin tanning in Italy. Since production costs are increasing dramatically, the luxury industry is trying to invest and control the supply chain as close as possible.
Conceria Superior has gone from having 46 employees in 2008, to having more than 120 today. The tannery has mainly invested in the digitalization of processes and in a sustainable development plan based on:
- the circular economy,
- energy efficiency and
- the preservation of water resources.
This operation means another important step in the strategic path of vertical integration of the group’s supply and production chain. Thanks to the vertical integration, greater economies of scale is obtained. This occurs by better leveraging resources that can be shared by multiple departments.