Earlier this week news broke that Michael Kors purchased Versace for a whopping 2.1 billion dollars!
Versace’s creative director, Donatella Versace, has run the company since 1997. Donatella told media that this sale was a “very exciting moment” and said it would “allow Versace to reach its full potential”.
Many people in the fashion industry are questioning this major move because Versace represents the “epitome of Italian fashion luxury”. This high-end brand has been worn by high profile stars and is splattered across Vogue and many other fashion outlets. To know that the chief executive of Michael Kors has purchased this company is very interesting. The Michael Kors brand can pretty much be found anywhere and it is more accessible than Versace. Some people in the industry feel as though this may take away from the exclusiveness of the Versace brand.
Here’s what will happen
- Versace outlets stores will increase from 200 to 300
- Michael Kors will be renamed Capri Holdings Ltd so it can represent multiple luxury brands
- Michael Kors will become an international house of fashion brands
- Versace shoes and accessories will become more accessible to middle income shoppers
Personally, I am all in for this move. I am pretty cheap when it comes to my clothes, so to think that I can possibly own Versace pieces for a lower price is amazing. I think designers all over the world should recognize that if they appeal to shoppers with lower incomes, they would potentially increase their sales.
I don’t know about you, but I will definitely be on the lookout for the outcome of this collaboration!