Page 13 - BMMGuru Monthly Issue 21
P. 13
Lifestyle
#BMMGuruWeekly#BMMGuruWeekly
Michael Kors Acquires
Versace for $2.1 Billion ? Why
are People Worried?!
While the entire fashion world is split between Michael Kors, the brand, hit gold with its design
celebrating and mourning this epic move in the and price point? making it one of the most
luxury fashion industry, here are my two bits desired brands of ?affordable luxury? in its initial
about what I think this means for both these years. It was young, hip, luxurious and yet, not
massive fashion houses. completely out of reach. However, the easy
accessibility, outlet stores and the massive
American Luxury Conglomerate (in the
discounts available on the already ?affordable?
making), Michael Kors? now known as Capri
items, made sure that the real luxury
Holdings, according to Business of Fashion,
consumer, didn?t want to be seen with it
outlined its plans for Versace, including
anymore. Desire, was lost.
increasing its global retail footprint from 200
stores to 300, building out e-commerce and Now, I know that Michael Kors the brand, is not
expanding men?s and women?s accessories Capri holdings? and that each brand under the
and footwear. umbrella can and should stand for different
values to tap different segments, but my point
Now, a lot of people seem to think that this
takeover will spoil the Versace brand name is that a lot of times, conglomerates look at
and democratize it to the level of Michael Kors? optimizing their existing logistics and channels
while a lot of others don?t seem to understand for all brands in order to expand reach and
volumes. With Michael Kors and very recently,
that if Donatella Versace is still the design
Jimmy Choo, Capri holdings has primarily been
head, why are people fretting about it.
in the accessories business.
According to me, the concern is real. Why? 3
And, More Accessories make you more
major concerns:
?Accessible?!
Democratizing the ?brand? and not just the
products: It?s really no wonder then that as per John D
Idol, the chairman and CEO of Capri Holdings,
?Desire? is the key word when it comes to luxury one of the ways they plan to make Versace
brands. You make a brand accessible, and you more profitable, is by expanding the Men?s and
can be certain that it won?t last too long. Women?s accessories line.
We?ve often seen luxury brands die a sad Now, when you take over a Luxury fashion
death in the hands of large corporates. They brand with decades of legacy and decide to
may make more money initially, but if the expand the accessory lines? with an existing
conglomerate / corporate doesn?t have luxury strong-hold in ?affordable luxury accessories?
in its DNA, it?s very easy to democratize the space with Michael Kors? it will be very
brand in order to make it more affordable, tempting to want to optimize all those existing
which over a period of time makes people not channels for the accessories line of Versace
?desire? it anymore! too.
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