The year 2018 has been full of surprises, but the biggest surprise for us was when we heard that Michael Kors, the all-American-style fashion label, bought the Italian luxury goods house Versace. The deal was for more than US$2.12 billion and Michael Kors Holdings will be renamed to Capri Holdings Limited post-acquisition. Fashion mogul Donatella Versace believes that this is a “very exciting moment for the brand”.
Versace, an affluent brand that boasts luxury and high-fashion, will now get the chance to explore a higher potential. The acquisition worried the fashion industry at first, because when you think of Versace and Michael Kors, two different fashion styles come to mind, one being more opulent and the other all-round American chic. However, fret not: we are here to sort things out and answer all of your questions about Versace and the Michael Kors acquisition.
The brands individually
Versace was founded by Gianni Versace in 1978. The Italian luxury fashion house has seen massive growth with its innovative pieces that have long been worn by fashion lovers, positioning it as one of the most exquisite European fashion brands. As of 2016, more than 1,500 Versace boutiques were operating worldwide. After the sad passing away of designer Gianni Versace in 1997, his sister Donatella took over and has been running the company for more than 20 years now. On the other hand, Michael Kors is an American fashion label that’s well known for its luxury accessories and ready-to-wear collections. Michael has been a great fan of Donatella for many years and this acquisition is something the designer is “thrilled” about. Michael also stated that he is looking forward to having the Italian brand as a part of the family.
The differences between the two brands
Being the roots of luxury fashion brands, including Versace, Europe has always known to be the land of fashion houses. The Michael Kors acquisition also demonstrates that American fashion brands are still seriously trying to keep up with European fashion. Furthermore, Michael Kors focuses on selling American goods while Versace focuses on selling luxurious high-end Italian goods. So even after all these differences, the investment still happened. Kors stated that he will focus on expanding the retail outlets of Versace with the aim of obtaining US$2 billion per annum. The two fashion labels will work on structuring the e-commerce and widening their men’s and women’s accessories and footwear.
As we mentioned above, Michael Kors Holdings Limited will be renamed to Capri Holdings Limited. However, this is expected to make it easier for fans to differentiate between the two. Donatella Versace will remain as its creative director and will now be a shareholder of this group. Michael stated: “Donatella’s iconic style is at the heart of the design aesthetic of Versace.” After taking over her family company more than 20 years ago, Donatella believes that this step will define the long-term success of Versace. Furthermore, she adds: “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.”
Michael Kors’ journey towards the fashion industry
Last year, Michael Kors took over Jimmy Choo for US$1.2 billion, while this year it’s allying with Versace. Rumour has it it is trying to grab Coach owner Tapestry next. If the deal closes, Michael Kors has successfully made it into the luxury fashion industry and stands as a competitor against the LVMH group.
See also: Arm Candy: 3 Iconic Versace Bags To Know