The famous American fashion-brand, Michael Kors, sealed a deal at a staggering US$ 2.1 billion to successfully acquire Versace, the Italian luxury brand known for its leather accessories.
Gianni Versace S.p.A, known for its Medusa-head logo and extravagant designs was struggling to increase its sales and global appeal in the near past. It failed to attract new consumers, especially in the Asian market. In order to woo the crowd, it even brought back Gianni’s 1990s collection at the Met Gala in 2017 with Gigi Hadid and Kim Kardashian. These included silk fabrics, leopard prints and baroque architectural images. Though the brand has been at its most prominent since then, Versace strives to grow as a global brand.
The deal is a double opportunity for both the companies. It extends the Amercian company’s dream to expand its base to become a larger brand name. By opening new shops across the world, Kors plans to increase the sales of the bag-holding company to US$ 2 billion annually, which is double the current sales figures. Michael Kors intends to capture the Asian markets especially in Japan and South Korea.
Meanwhile, people are uncertain of the Italian brand’s future. Kors is known for its easy, American style which is timeless, easy and subtle. Versace, on the other hand, offers a lot more offbeat and risk-taking designs in flamboyant styles. Founded by Gianni Versace, the 40-year old company celebrates diversity and inclusiveness through its ornate designs and bold prints. Consumers are hoping for the company to retain its unique offerings.
However, similar to Jimmy Choo, the company will retain its name and Donatella Versace will continue to lead the brand. The Versace family will continue to have a major role in the company despite the acquisition.
Michael Kors has also renamed itself officially as Capri Holdings Ltd. intending to develop its multi-brand luxury items strategy.
In 2017, Michael Kors had acquired the British shoe house, Jimmy Choo, at approximately £896 million. Jimmy Choo, named after its founder, has stayed in the limelight for its customized, luxurious shoes. It is a go-to choice of many stars like Beyonce and the Duchess of Cambridge, Kate Middleton.