On September 25th, Michael Kors Holdings Limited expanded its global reach with the $2.12B acquisition of the luxury Italian brand Versace. Due to this merger, consumers responded initially with backlash with the assumption that the acquisition will only benefit Kors at the expense of the Versace name and caché.
Fashion writers and consumers alike took to twitter to voice their critiques suggesting that the fear is Versace will now not only be easily accessible and lose its luxury association leading to the possibility that the brand may become less prestigious. Similarly to what happened to the Michael Kors’s brand when it became discounted and easily accessible over 10 years ago in retail stores such as TJ Maxx and Ross.
I believe that in order for Versace to beat this stigma, they need to come up with a fresh, ulta-luxurious spring 2019 collection with the same overzealous price as before to keep brand loyalty and consumption the same or even higher.