Michael Kors bought Versace and I Don’t Know How to Feel about It

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Michael Kors bought Versace and I Don’t Know How to Feel about It

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.


8 Comments

Aaron McWhirter

Aaron McWhirter

October 4, 2018at 1:14 pm

High fashion brands heavily rely on their reputation and elite status to justify their pricing and attract customers. Anything that upsets that balance can bring their future business success into question. It will be interesting to see how Versace develops and evolves their brand in the coming years.

Chloe Gibson

Chloe Gibson

October 4, 2018at 1:15 pm

I agree with you! I was shocked when I saw the news of this acquisition. Versace is such a fashion empire and I feel like Michael Kors is on its way to becoming the new Coach.. old and irrelevant. I keep reading articles that Versace will remain as a leading fashion designer, but this transaction only benefited the Michael Kors brand. In order to pull this acquisition off, it is all in Michael Kors’ hands. They need to really bring a lot to the plate this year and start climbing their way back up to the top, or else they may bring Versace down with them.

    Angela Njoku

    Angela Njoku

    October 4, 2018at 2:08 pm

    COACH! I remember when all I wanted was a wallet and like feel cool in high school. But Michael Kors needs to make his brand exclusive again. I completely agree with you. This may have been the wrong move for Versace but Donatella is only getting older and in order for the brand to live on she needed to put it in “experienced” hands I guess.

Janie Waddell

Janie Waddell

October 4, 2018at 1:25 pm

I was surprised when I saw this on my news feed last week! I agree with you that Versace needs to have an incredible spring line to demonstrate the continued prestige of its brand and products. I am curious as to whether Versace was experiencing financial troubles or simply saw this as the most lucrative move for the company at this point in time. It will be interesting to track what happens to the brand after this merger.

    Angela Njoku

    Angela Njoku

    October 4, 2018at 2:05 pm

    Michael Kors also owns Jimmy Choo and back in the 90s, Jimmy Choos was equivalent of Dior and now you can find it at off Saks and discount online stores. So, I mean this could go either way.

Kellyn Archambeau

Kellyn Archambeau

October 4, 2018at 1:40 pm

I don’t know how to feel about it either. I think the Versace brand will continue to be associated with luxury, but it might take a month or two for people to get over who now owns the brand. Micheal Kors…just…ugh.

    Angela Njoku

    Angela Njoku

    October 4, 2018at 2:02 pm

    Exactly, people on twitter were like “This isn’t what Gianni died for”. People are really out here jumping to conclusions but it’ll be exciting to see where this goes.

Alexandra Fairley

Alexandra Fairley

October 4, 2018at 1:53 pm

I was not fond of this “transaction” at all. Michael Kors and Versace are on completely different levels in my opinion. Like you said, you see Michael Kors being sold in TJ Maxx, Ross, Marshalls, many department stores. Though it is a high end brand, it is definitely more accessible to many different people. And I didnt dislike that at all. However, Versace had that status of being accessible to few, and I think that will no longer be maintained after this transaction. This should be an interesting move.

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