On Tuesday, September 25th Michael Kors announced its decision to buy Versace for approximately $2.12 billion.
This consolidation fascinated me, as brand identity and creative independence couldn’t be more paramount to the success of this venture and the growth of both companies.
This is a beautiful example of companies embracing and using synergy to bring higher value to both brands.
Each brand has a lot to lose from this venture, but each also has the potential to gain more than ever.
When asked about the venture, Donatella Versace said this:
“I am proud that Versace remains very strong in both fashion and modern culture. Versace is not only synonymous with its iconic and unmistakable style, but with being inclusive and embracing of diversity, as well as empowering people to express themselves… I recognise that this next step will allow Versace to reach its full potential.”
Since Donatella will remain the Creative Director, and Capri Holdings (the new name for Kors) wishes to raise Versace’s percentage of the business from 35% (what it is currently) to 60%, I’d say the chances of success for everyone involved are sky high.
I’ll be waiting with great anticipation to see how each brand changes, and to see how both the loyal and the new customers react to these changes.
What do you think of all this?