Miu Miu is an Italian luxury brand that is part of Prada Group. It was developed directly by Miuccia Prada with a younger and more playful interpretation of Prada’s aesthetic in mind.
The company’s financial results show an 89% growth in sales for the first quarter of the year compared to last year, an unimaginable feat during the recent luxury retail slowdown. It should be noted that this does not correspond to high investments in distribution, on the contrary, its strategy in recent years has been to reduce the number of stores.
What is this brand doing to gain more and more followers and convert their popularity into sales? We’ll explain their business strategy and what you can learn from them.
1. Take risks:
Miuccia Prada describes the Prada brand as “the most serious part of herself” and Miu Miu as Prada’s “experimental playground”. Prada is a brand that utilizes familial heritage ties and was created with a strong image to take care of, but Miu Miu is the platform she uses to take risks and create what she truly wants.
Miu Miu started as a fashion start-up, which allowed her to test the market with an innovative concept that people were drawn to. Vibrant colors and patterns, different designs, and not being afraid to create discourse and controversy have helped Miu Miu gain an independent soul and affection from consumers.
New brands should differentiate themselves from the competition and be bold in bringing new conversations to the table. Showing innovative work that incorporates strong statements are important to becoming noticeable during times when consumers have so many distractions. In this case, being bold and confident and connecting with specific communities is better than being a generalist unable to create a fan base that supports and promotes the brand.
2. Clearly and directly target the client:
Miu Miu was a more creative brand for a younger crowd. It was an entrance to luxury for a generation that was looking for something new and different. The management knew that the clientele for Prada and Miu Miu was different and in order to keep the brands independent, it was the right thing to do.
With the understanding that millennials were growing up, Miu Miu changed the target client to not only young people but for people with a youthful attitude to keep those who already developed a favoritism for the brand. It helped reach a larger audience but at the same time was clear about who the consumer is. It wasnt about age anymore, but rather about the personality and the behaviors of the brand.
3. Resilience:
Miu Miu is a 30-year-old brand, well-known since the beginning by fashion followers but only recently known to the rest of the world. Achieving sustained success takes time and hard work. This brand was born as Prada’s little sister, and it took them a while to be seen as a strong and independent brand. Knowing how to make decisions in the face of adversity, such as a fashion show in the middle of an Italian snow mountain to preserve and adhere to COVID-19 measures instead of canceling it like other brands, shows the resilience of the company.
Resilience comes from management and their ambition to succeed and sustain that success. It is about always finding a way to continue and take risks even when the outcome doesn’t look so clear or positive. It is a bet that if played well, will bring an abundance of rewards.
4. Strategic partnerships:
It is better to share gains than to hoard losses. Miu Miu knows how to develop the right partnerships to create brand awareness and positioning. These partnerships have come to fruition throughout the years with collaborations with mass brands such as New Balance, and strategic ambassadors that effectively represent the values of the brand while engaging new consumers at the same time.
Partnerships are common in the industry but they should be done with brands with similar sensibilities or those that can add something that may be missing in the brand. This is especially important for a luxury brand that wants to create brand awareness without taking the risk to damage the brand identity or brand perception.
5. Authenticity:
Miuccia Prada was a communist and she is not scared to say it, furthermore, she has criticized bourgeoise society and conventional beauty standards on multiple occasions, which happen to be key elements in the traditional luxury industry.
Miuccia, who has a PhD in Political Sciences, is not afraid to make statements and give opinions about sensitive topics. To some people, fashion can look superficial, but for her it should be analyzed intellectually, through a lens of community, culture, and social responsibility.
Miu Miu was a brand created by her with the intentions of displaying the traits of its creator stamped on its spirit. It is better for a brand to have disciples and contradictors than wanting to please everyone and becoming easily irrelevant.
Miu Miu with its suggestive designs, disruptive mixes of colors and patterns, and a clear voice, has managed to earn its place within the industry and demonstrate that even in a slow moment, it is possible to show the strength of the luxury industry and all its potential if it is understood correctly.
