Both American Michael Kors and Italian Versace have been famous fashion brands for many years. They are associated with style and high-quality clothes and accessories. In 2018, Michael Kors Holdings had been renamed Capri Holdings Limited and acquired Versace as a part of its business. This event was desired by both sides and reflected the latest trends in the industry as Ermenegildo Zegna purchased Thom Browne, and the Puig Group took a majority stake in Dries Van Noten (Phelps, 2018). Kors said the following about the acquisition: “I am thrilled that the house of Versace will be a part of our global fashion luxury group” (Phelps, 2018, para. 5). He plans to direct the Italian company toward affordable fashion accessories and away from the luxury niche (Danzinger, 2018). However, this strategy is new and experimental for Versace since they have always aimed at wealthy clients and focused on clothes.
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The fashion trends are dynamic, and what was prestigious and in high demand several decades ago may be outdated now. Since the whole world lives in a digital era with clean design and high technology, “streetification” may be necessary for brands like Versace to survive (Danzinger, 2018). It would be challenging for the shimmering evening gallons and extravagant suits to compete with the comfortable fashion that modern business people use daily. In this sense, Versace is no longer competitive in the high fashion market.
Michael Kors has dedicated his whole life to developing luxury yet sporty clothes. He wanted the clients wearing his collections to feel “confident, at ease, indulged and in control” (Michael Kors, n.d., para. 7). Versace clothes are glamorous and luxurious, suitable for evening events and dinners. Their style is extravagant, with gold and black as the primary colors. Donatella Versace mentioned that she would like to make her upcoming collections small and seasonless so that people would want to wear the clothes immediately instead of waiting for the appropriate weather (Hyland, 2020). Michael Kors could incorporate Versace into their broad network of stores and earn the spot in the luxury niche, while the Italian brand would become more modern and start designing more accessories. The collaboration of the companies may lead to economic benefits for both of them.
Danziger, P. (2018). Why fashioning Michael Kors’ new Capri Holdings after LVMH is a bad idea. Forbes. Web.
Hyland, V. (2020). “Nothing’s ever going to be the same”: Donatella Versace. Elle. Web.
Michael Kors. (n.d.). Web.
Phelps, N. (2018). Michael Kors acquires Versace for more than $2.12 billion. Vogue. Web.
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