Remember when having a Michael Kors bag was a statement? It seemed like everybody that was an anybody was carrying an MK purse, whether it was an it girl or the popular girl in your high school. Recently, Michael Kors stores have been ghost towns and it’s no longer the boujee brand that it was. Michael Kors got carried away and started opening more and more retail channels to ride the wave. However, this made the brand more accessible and eventually diluted their overall brand.
… and that’s why it’s monumental that Michael Kors Holdings Ltd has acquired Versace, the Milan based Italian luxury company. With Michael Kors’ acquisition of Jimmy Choo in 2017 and the recent acquisition of Versace, Michael Kors Holdings Ltd is on the road to #MakeMKBoujeeAgain.
Although Michael Kors himself is probably celebrating, the Fashion world is mourning the death of Versace as we know it. However, the reason that MK acquired Versace is not to make it more American and change its aesthetic, it’s more to diversify their portfolio and upscale their overall brand.
So, for all you Versace lovers – there’s no need to fret, the Versace lion isn’t going anywhere.
This strategic move can take Michael Kors Holdings Ltd, now Capri Holdings, to the next level and make them a more dynamic fashion conglomerate.
It’s important to note that there are plenty of parent companies that own affordable brands and luxury brands. For example, Volkswagen, a reliable and affordable brand, owns Bentley, which is one of the most luxurious brands in the world.
Additionally, LVMH owns Marc Jacobs and owns some of the most upscale brands in the world. These companies are aware of the complexities of owning a luxury brand and treat them very differently than how they treat their more affordable brands. Have some faith in Donatella – she wouldn’t let a company buy Versace if she thought they would ruin it!
Michael Kors will always hold a place in our hearts and remind us of our first bag... but they're not that same company anymore. Michael Kors needed this acquisition, just like they needed Jimmy Choo, to transform them into a more luxurious and impactful company.
So, let’s stop worrying about the “death” of Versace, and keep an eye on Capri Holdings and see how they continue to #MakeMKBoujeeAgain.