How Global Strategy Will Make or Break Michael Kors (NYSE: KORS)

By Andy Hoffman, Rita Scheer, and Yona Splaver

Executive Summary

Overview:

In May of 2017, following several quarters of stagnated revenues and brand dilution, the luxury

apparel firm Michael Kors announced their new strategic plan for global expansion, Runway 2020. The

project outlines a campaign for brand revitalization through improvements in product design, brand

communication, and customer experience. Michael Kors’ design and brand identity exemplifies effortless

polish; in 2017 their product mix was concentrated heavily in handbags, at 70%. They plan to diversify this

product mix, hoping to boost excitement and minimize discounted sales by external retail stores.

Problem:

In the year and a half following, Michael Kors also acquired globally recognized apparel brands

Jimmy Choo and Versace; notwithstanding all of their debt. As Michael Kors attempts to expand into the

European and Asian markets, the firm’s acquisitions will help bolster their credibility in the high-end

fashion industry, resulting in higher prices and profits. Since 2016, consolidated indebtedness has grown

from about $4M to about $759M, equaling more than 40% of the firm’s $2,183M net worth.

Although the board of directors may believe “you have to spend money to make money”, the total

debt accumulated on the firm’s balance sheet will lead to increased financial pressure if the firm fails to

consistently grow revenues and pay off the accumulated debt. Before the acquisitions, KORS had nowhere

near this level of debt, indicating the necessity to shift their strategy with these new acquisitions, to integrate

global marketing and operations strategies for revitalizing brand growth.

Solution Proposal:

Although the obstacles ahead will prove tough to overcome, the firm has positioned itself well to

persevere. To do so, the board of directors must formulate global marketing strategies to integrate with the

Runway 2020 campaign and the firm’s acquisitions to solidify Michael Kors’ position as a global brand.
 1
Overview of Michael Kors Holdings:

Mr. Michael Kors first launched the Michael Kors (“MK”) in New York in 1981 and has been

successful ever since. Michael Kors’ competitive advantage is utilizing social integration of brand

awareness in positioning high-end, ‘ready-to-wear’ goods between middle and upper-tier price points to

build profits through high volume sales quantity, instead of offering goods with top-level price tags with

wider profit margins. Today, the company produces a wide variety of luxury apparel and accessories, from

jewelry to leather goods to body fragrances and clothing lines for both men and women, all of which stem

from Kors’ established and respected design style. Designer and Chief Creative Officer, Michael Kors,

shaped the brand image, with “timeless chic”1 as a founding principle uniquely harnessed in the company.

The story of the Michael Kors label began with the newly established luxury clothing brand in

high-end department stores such as Saks Fifth Avenue, Bloomingdales, and Lord & Taylor. From 1983 to

today, the Michael Kors brand won many design awards for their original clothing, 2002 men’s collection,

and 2001 accessory designs, as well as being regarded by Vogue as ‘one of the most influential designers

of the decade’. Michael Kors since began expanding internationally with major specialty accessory stores

and national flagship stores in Beverly Hills, New York, Chicago, Milan and London2. On December 15th,

2011, Michael Kors debuted as a publicly traded enterprise on the New York Stock Exchange. The firm

came out of the gates swinging as they set a new record for largest fashion IPO, surpassing Ralph Lauren’s

valuation in 1997 by $177M, totaling $944M raised by KORS through the sales of 47.2M shares to the

public on opening day. The IPO set the firm’s market value at roughly $1.18B3. In addition to their

successful public offering,

1
"About Us." Michael Kors. Accessed December 2018.
https://www.michaelkors.com/info/about-us/s11400074.
2
"History of Michael Kors." History of Fashion. September 01, 2013. Accessed November 2018.
http://www.fashionintime.org/history-of-michael-kors/.
3
Farrell, Maureen. "Michael Kors IPO: Stock Surges 20% on First Day." CNNMoney. December 15,
2011. Accessed December 2018.
https://money.cnn.com/2011/12/15/markets/michael_kors_ipo/index.htm.
 2
Between 2010 and 2012, Michael Kors doubled their investments in retail stores from 100 to around

200 new retail locations worldwide. The company transitioned from a predominance in department stores

to a focus on brick-and-mortar locations. Despite the emergence of discount retailers, Kors successfully

targeted young customers who were defined by an annual income ranging from $100,000 to $250,000 and

were looking to shop for luxury goods, but were unlikely to splurge on products with price tags as high as

those offered by companies like Gucci, Prada, Louis Vuitton, and so on. Thus, Michael Kors filled a need

for customers that were looking for “affordable-luxury”.

In June of 2017, Michael Kors agreed to acquire the upscale shoe manufacture Jimmy Choo; the

impetus for this acquisition can be attributed to fierce price competition and the social environment of

implementing discount products that had put pressure on Michael Kors handbags profits. At the same time,

Michael Kors competitor, Coach Inc., had just acquired Kate Spade & Co. for $2.4B in anticipation to tap

the market of younger consumers in response the company’s slow growth in the handbag market4. Michael

Kors decided to acquire Jimmy Choo for a similar reason, as the handbag market was gradually decreasing

from 15% growth in 2011 to 2% in 20175. More recently, Michael Kors bought Versace for $2.1 billion in

2017 and plans to increase Versace’s revenue from $808 million to $2 billion in the foreseeable future6. In

increasing Versace’s revenue, Michael Kors plans to open 100 new Versace stores, increase the number of

shoes and accessories being sold by Versace, and develop Versace’s online presence. With Michael Kors

acquisition of Versace, the company benefits from an increased global presence and aims to legitimize the

‘luxury’ component of their current ‘affordable-luxury’ image7.

4
Garcia, Tonya. "Michael Kors' Sales Miss, so Soon after the Versace Acquisition, Has Analysts
Worried." MarketWatch. November 08, 2018. Accessed December 2018.
https://www.marketwatch.com/story/michael-kors-sales-miss-so-soon-after-the-versace-
acquisition-has-analysts-worried-2018-11-07.
5
Ibid.
6
Tyler, Jessica. "Michael Kors Is Buying Versace in a $2.12 Billion Deal. Here's the Complete Story of
How Versace Became so Iconic." Business Insider. September 29, 2018. Accessed November 2018.
https://www.businessinsider.com/michael-kors-buys-versace-brand-history-2018-9.
7
Ibid.
 3
Today, Michael Kors operates with a total of 395 American, 202 European, and 251 Asian stores;

leaving the company with a grand total of 848 retail stores. The manufacturing for Michael Kors, Versace,

and Jimmy Choo predominantly comes from Asia and Europe. Michael Kors largest manufacturing

contractor, who predominantly produces its products in China, accounts for ~20% of the company’s

finished goods. For Jimmy Choo, 92% of production came from specialists in the Florence and Veneto

regions of Italy. Lastly, Versace manufactures all of the company’s products in Italy.

To address growing issues of consumer loyalty, thinking ahead of competition, and anticipating

trends toward globalization, Michael Kors devised Runway 20208. Working with highly established brand

identities through product differentiation in their brands - Versace, Jimmy Choo, and the Michael Kors

lines - Runway 2020 focuses on Kors’ strengths without extending into Choo’s or Versace’s profits. The

vision for Runway 2020 focuses on innovation, loyalty, extension into digital experience, and

communicating an identity of a fast-paced lifestyle.

Michael Kors’ current strategy can be illustrated through a five forces analysis9, demonstrating how

the fashion industry functions and how Kors’ present and future looks in their segment’s context. First,

industry competition is high, because high-end fashion is inaccessible to the majority of consumers, and a

high volume of established luxury brands must compete for this small consumer base. However, Michael

Kors has a well-regarded and sleek image, which can be viewed as a competitive advantage. More

importantly, Michael Kors is a brand that exists in a mid-to-high range sector, allowing them to compete

on multiple fronts. The mid-range styles are a strategy that has not been perfected, as Kors items have been

stockpiling at external retailers, necessitating heavily discounted prices - weakening revenues and brand

8
Idol and Edwards. “Michael Kors: Runway 2020.” Michael Kors Investor Day Presentation, June 9th,
2017. Accessed through
http://investors.michaelkors.com/events-presentations/default.aspx.

9
Porter, Michael. “The Five Forces That Shape Strategy.” Harvard Business Review January 2008: 3-19.
 4
image. In summary, Kors’ strategic pricing position within the highly competitive luxury apparel industry

is a static advantage, but the firm is still shooting below its potential.

Owning multiple brands is a growing trend among high-end companies, which Kors has made a

foray into since their IPO; Kors has lower profit margins and higher sales volume than most of their segment

of the market, and new acquisitions Versace and Jimmy Choo have high profit margins and low volume of

sales, covering a range of demographics. Furthermore, their three brands each have focuses in different

areas, from handbags, to clothing, to shoes. However, the threat of substitutes in the industry is high, despite

product and price differentiation. Products within the luxury sector are easily replaced with cheaper, off-

brand goods. New entrants pose a small risk because brand recognition and size are essential in the industry,

creating an entry barrier in the necessity for economies of scale for any potential entrants. Additionally, the

power that celebrities and public figures wield over the industry creates a problem for small, unknown,

potential entrants.

Bargaining power, of suppliers and consumers is high for all of Kors’ brands. Jimmy Choo has an

extremely high power of suppliers, because their shoes are made by a select few artisans in Italy and Spain10.

Michael Kors brands outsource production11, which also lends power to third parties, and taking some

control away from Kors. To build upon this, buyers in the luxury sector also have high power, as they have

many brands to choose from, and low loyalty, in the sense that they can buy as much or as little as they

choose.

10
"Supply Chain Disclosure." Annual Reports. 2018. Accessed December 2018.
http://investors.michaelkors.com/resources/supply-chain-disclosure/default.aspx.
11
Ibid.
 5
The Problem:

Global retail strategy in 2014, which remains part of their stagnating current retail strategy, includes

Michael Kors’ acceleration of its global expansion, reaching 533 retail locations worldwide of which 138

were licensed stores and 395 were company-owned12. When implemented, financial reports proved the

expansion plan was productive for the company with increases in earnings per share to 73.4% and an

increase in revenue to 59% in the third quarter of 201413. However, financial reports didn’t show that

accelerating expansion was leading to dilution of the brand and ultimately alienation of loyal customers14.

In the graph and table below, it can be seen that following the third quarter of 2014, Kors’ stock has fallen

into a period of mediocre growth performance since it’s peak in 2014 when the enterprise was able to

outperform the rest of the apparel industry with a vertical take-off into European markets.

12
"Michael Kors Holdings Limited Announces Third Quarter Fiscal 2014 Results." Annual Reports.
February 4, 2014. Accessed December 2018.
http://investors.michaelkors.com/news-releases/news-releases-details/2014/Michael-Kors-
Holdings-Limited-Announces-Third-Quarter-Fiscal-2014-Results/default.aspx.
13
Ibid
14
Timberlake, Cotten. "Michael Kors Beating European Brands on Their Own Terf." Bloomberg.com.
April 4, 2014. Accessed December 2018.
https://www.bloomberg.com/news/articles/2014-04-04/michael-kors-beating-european-brands-
on-their-home-turf.
 6
Earnings Growth of MK in Third Quarter 2014 by Region

Region Q3 2014 Q3 2013 Growth

North America $862.62 million $573.12 million 50.5%

Europe $140.29 million $57.6 million 143.6%

All other regions $9.32 million $6.06 million 53.8%

Although Kors’ revenues continued increasing through 2014, the firm’s stock weakened by 4% in 2015

with dwindling sales. Analysts believed that although the retailers growth had meant more accessibility for

consumers, brand interest had begun to dip as it’s exclusivity weakened and their products became more

ubiquitous15. Accelerating growth by quickly opening an abundance of new stores also lead to lack of

forethought and analysis of new store locations’ and their potential profitability, begging the question: Was

Michael Kors rushing their expansion efforts with greenfield investment?

When a firm’s stock is doing well, it can be easy for the board to overlook early signs of alienation,

especially with an expansion strategy based on foreign direct investment. Of the varying modes of global

market entry, foreign direct investment poses the highest risk and commitment of resources with the lowest

flexibility. FDI provides the firm with complete control over operations though, since they avoid any

interaction with intermediaries. Michael Kors could have looked into commercial joint ventures first, to

minimize their financial risk and test the market before committing more resources.

In structuring an international brand presence, the firm’s struggle with maintaining it’s luxury and

appeal became more evident. Additionally, sales associates in retailers struggled to maintain customer

service standards while trying to meet quotas, further alienating customers. One customer even said:

I felt slightly awkward because it felt like every staff member kept watching me and waiting for me to buy

it. The pressure was on, but of course I didn't buy it. I just wish I didn't feel like they were breathing down

my neck and trying to push me to buy it right then.16

15
Ibid.
16
Ibid.
 7
Prioritizing short-term success and profits, the brand began to suffer an identity crisis as it lost sight of their

core values. In the following graph, Kors’ revenue growth has stagnated since 2016 as a result (see exhibit).

Customers were originally drawn to Michael Kors because the brand, it’s stores, and it’s products gave

customers the jet-set mentality of luxury and sophistication; but customers now felt like they were being

treated like they weren’t special. Kors’ customers resigned back in the economy section with everybody

else who owns a Michael Kors purse.

What Strategies are Kors Implementing to Address This Problem?

Michael Kors strategic plan for global expansion through Runway 2020, hasn’t proven to be

effective yet. The vision for this project, as presented by the Michael Kors management team, outlines the

company’s plan to drive future business growth through product design, brand communication, and

customer experience17. These three methods developed by the Michael Kors management team, strives to

reinvent the company’s past strategies. With these new implementations of strategy, the company predicts

that they can generate more shareholder value through increased profits and revenues. Michael Kors’ plan

states that they are committed to trendsetting and manufacturing innovative products will help strengthen

17
"Takeaways from the 2017 Michael Kors Investor Day." Coresight Research. June 21, 2017. Accessed
December 2018.
https://coresight.com/news/takeaways-2017-michael-kors-investor-day/.
 8
the company’s position as a global fashion leader. The company’s outlook on future product design involves

taking advantage of athletic trends, continuing to keep their smartwatch products cutting-edge, and

enhancing the accessories offering of Jimmy Choo. By implementing these initiatives, Michael Kors

strategy hopes to harness national and worldwide trends. At the same time, the company plans to continue

maintain the brand’s authoritative figure throughout the global fashion industry18.

Through brand engagement, Michael Kors intends to increase customer loyalty and outreach

through various methods of company communication. Michael Kors management team suggests a return

to Mr. Kors “global prestige and reputation”. In the same vein, the company intends on leveraging Jimmy

Choo’s iconic brand label through celebrity advertisement, editorial coverage, and social media marketing.

As part of their brand engagement plan, they also mention continued placement of Michael Kors stores in

high-visibility locations around the world. The company has been looking for a new strategy in respect to

the optimization of the Michael Kors store fleet. By closing 100-125 company stores, Michael Kors believes

that they can improve on the overall store profitability. By increasing brand engagement, the company

expects to create excitement and generate global press coverage19.

Michael Kors continual effort to focus on customer relationships, has driven the company to pursue

higher optimization in the customer experience. To do so, Kors’ highlights planned expansion and

integration of their global e-commerce platform, in addition to maintaining fourteen Michael Kors e-

commerce websites in Asia and Europe. Ultimately, Kors believes this strategy will enhance the overall

customer experience abroad, and will generate more company revenue and help the company expand

globally20.

18
Michael Kors Holdings Limited. (2018). Form 10-K. Retrieved from
http://investors.michaelkors.com/financials/sec-filings/default.aspx.
19
Ibid.
20
Ibid.
 9
Why KORS’ Strategy is Failing:

Runway 2020’s glaring flaw is it’s lack of clarity, and most of all, it’s vague references to global

strategy and integration of technology, without proposing clear paths to success. The first mistake Kors

made with this strategy was its focus on consumer behavior without any action by their team; their vision

includes items like ‘loyalty’* and ‘new fleet concept’21 without strong ideas and research to back up these

terms. Michael Kors appears confident on the outside, but when looking at their quarterly and annual filings,

there is little proof or substance to their strategic plan. They seem hopeful about their ‘fleet plan’, but as

mentioned earlier, this is tied to the closure of 47 stores22. and planned closure of “100 and 125 of [their]

underperforming Michael Kors full-price retail stores”. There is also little description of the plan, which is

used as an excuse for millions in costs, explained only once in this excerpt from their 10-K;

Expanding Our Global Presence. We will continue to increase our global penetration in

Asia and Europe and leverage our existing operations in international locations to increase

global brand awareness and market share by: 1) Elevating the Michael Kors store

experience and optimizing the Michael Kors store fleet through the closing of 100-125

stores to improve store profitability (the “Retail Fleet Optimization Plan”), as well as

continuing to grow the Michael Kors mens’ business, apparel and footwear product

categories around the world23

This describes the plan that KORS is using to reframe their store closings as a solid strategy, rather than

simply coming up with creative, researched, or new strategies. Runway 2020 and the strategies that make

up this plan are emblematic of their rush to the market, without enough consideration and innovation. This

21
Idol and Edwards, “Michael Kors: Runway 2020.”
22
Wahba, Phil. "Michael Kors Closing Up to 125 Stores As Sales Plummet." Fortune. May 31, 2017.
Accessed December 2018.
http://fortune.com/2017/05/31/michaelkors-stores/.
23
Michael Kors Holdings Limited. (2018). Form 10-K.
 10
strategy is not working because it showcases style over substance, and is not a true ‘revitalization’, but

reads more like trying to ‘throw a sheet over’ and rebrand strategies that haven’t worked in the past.

Their other attempt at forming strategy to increase profits was their acquisitions of Versace and

Jimmy Choo. Michael Kors was seeking acquisitions because they knew they needed to compensate for the

downward turn of their brand. However, these acquisitions merely provide a temporary ‘band-aid’ solution,

without actually addressing or fixing the Kors brand shortcomings. In fact, they create the need for

brainstorming additional strategies for global expansion and marketing, for a brand that is currently facing

the same problem. Additionally, Kors’ strategy and approach to expansion abroad is mostly focused on

foreign direct investment, as in, opening many retail stores and M&A, allowing for maximum control and

maximum risk. This risk lies in the need to adapt the store to the locale, which Michael Kors struggles with,

since their brand lives in the space between mid-end and luxury. Without adapting and personalizing the

stores to locations (see image below), Kors is relying on reputation to draw in sales like a top luxury brand.

The inability to adapt and draw excitement is likely contributing to the failure of large percentage of their

stores. Michael Kors has not made an attempt to explore with their stores- they streamline their stores’

design as having mostly white interiors with metal accents and acrylic display cases, focusing on clean

simplicity. They have not tested or considered any ways to portray their ‘jet-setter’ image abroad by offering

unique products internationally or customizing design.

 11
Recommendations and Conclusion:

In order to directly address the global strategy problems facing Michael Kors, we recommend

multiple straightforward, creative, and trendy ways to respond to the global market by leveraging Kors’

strong brand and recent acquisitions. To globalize their Runway 2020 vision and jet set mission, and to

incorporate their desire to innovate by “leveraging the current athletic fashion trend”24, we recommend

becoming involved with the international athletic stage at the Olympics. To address the failure of their

quickly enacted globalization strategy, we recommend diversifying their distribution methods. Finally, to

harness trends and prove that they can make waves in the luxury market, we designed a collaboration

between Kors’ acquisitions. Furthermore, to have a long lasting impact in line with Kors’ history, we

believe involvement in philanthropy directed at LGBT+ movements would be a creative way to keep Kors

relevant. With these different approaches, all targeting Kors’ strategic shortcomings, we hope the brand

can get back on track and stay as strong as they’ve been historically.

Olympics as a Runway

Celebrity sponsorships are common, and companies can sometimes collect large amounts of

revenue off the right endorsement. Take Michael Jordan, arguably one of the best basketball players of all

time as an example. In 1985, Jordan closed a deal with Nike that would pay the professional basketball

player $500,000 a year for five-years to use his name on any Nike apparel and shoes. Just two months later,

Nike sold over $70 million worth of shoes using the Jordan brand name. Fast forward to the year 2016, the

Jordan brand brings in more than $2.5 billion in annual sales for Nike25. Having a celebrity or a sports

player advertise for a company’s product, can sometimes result in large revenue gains for both a company

and the individual being sponsored.

24
Michael Kors Holdings Limited. (2018). Form 10-K.
25
Rovell, Darren. "Michael Jordan's Agent Tries to Set Record Straight on Original Nike Deal." ESPN.
May 04, 2016. Accessed December 2018.
http://www.espn.com/nba/story/_/id/15463041/michael-jordan-agent-tries-set-record-straight-
original-nike-deal.
 12
Michael Kors should advertise company products in one of the worlds most watched events in the

history of television, the Olympics. On average, the Olympic games will capture an audience of around two

billion people worldwide26. Athletes take the global stage to compete in a series of diverse activities ranging

from curling to ice hockey, pole vaulting to table tennis, and so on. At the same time, the Olympics also

sets the stage for one of the world’s largest fashion shows. With the rise of social media, broadcasting, and

the internet, fashion designers have used this opportunity to display their products on the global stage27.

Similar to the Michael Jordan endorsement, companies are sponsoring top athletes from all over the world

to wear their products. For instance, Lacoste has sponsored Olympic leisurewear and created a 2020

Olympic Heritage line, and is a company that serves a similar consumer base as Kors28. Michael Kors

should take advantage of the upcoming Olympics and sponsor athletes to wear the company’s apparel. At

the same time, Michael Kors could also come out with special Olympic merchandise, as this will be unique

but still on trend. By selling special edition products, fans can show their support to players in the Olympics

while also showcasing their sophisticated and worldly lifestyle with emblematic Kors design.

Adjusting Global Retail Strategy

A company as large as Michael Kors can benefit from taking advantage of multiple modes of global

market entry. As mentioned earlier in the problem analysis, Kors’ global structure is largely comprised of

foreign direct investments and various licensing agreements. Kors need to be more flexible and creative in

26
Shazi, Nkosinathi. "10 Most-Watched Sport Events In The History Of Television." HuffPost. February
21, 2018. Accessed December 2018.
https://www.huffingtonpost.co.za/2018/02/21/10-most-watched-sport-events-in-the-history-of-
television_a_23367211/.
27
Rabimov, Stephan. "Fashion Diplomacy At 2018 Winter Olympics: When Uniforms Compete."
Forbes. February 08, 2018. Accessed December 2018.
https://www.forbes.com/sites/stephanrabimov/2018/02/01/fashion-diplomacy-at-2018-winter-
olympics-when-uniforms-compete/#5ebfbb6d500d.
28
Wahba, Phil. "Retooled: How Lacoste Became an Upscale Brand Again." Fortune. October 16, 2016.
Accessed December 2018.
http://fortune.com/2016/10/16/lacoste-retooled/.
 13
order to counteract the closing of their retail stores. Kors currently is putting more energy into their KorsVIP

app, but this effort has proved to be not enough. Michael Kors has tried a joint venture in the Middle East29,

but we recommend they try a joint venture in the larger Chinese market. This is an geographic area that

they haven’t received much attention in, and working with another company that has experience in the

market will help Michael Kors gain traction abroad. Additionally, this will allow Kors to align itself the

country, rather than simply opening dozens of stores without adapting them to the country’s market.

LGBT+ Impact

In Michael Kors’ mission statement, commitment to stewardship and philanthropy is highlighted:

Michael Kors has always been involved in philanthropy, fighting hunger for more

than 20 years… to help distribute meals to people with HIV/AIDS, cancer and other

serious illnesses. In 2013, he partnered with the United Nations World Food

Programme (WFP) to help fight world hunger by designing the 100 Series watch. A

portion of the proceeds from his special-edition timepiece helps WFP deliver food to

children through its school meals program30

Kors himself is a gay man who lived during the Aids crisis. Since the brand is hoping to involve Kors

and his history as much as possible into their brand, what better way than to position themselves as a

brand that supports LGBT+ safety. An on-trend marketing strategy could be Kors’ becoming involved

with RuPaul’s drag race. In a similar vein, Kors’ served as a judge on Project Runway for 10 seasons,

and that has provided the brand with additional reach. It would not be too big of a step for the brand to

perhaps use a winner of RuPaul’s show as a model, or create a marketing campaign based on

international drag. Additionally, Kors could consider creating a signature handbag for pride month, to

celebrate the life and values of its founder. During this potential campaign, Kors could donate to

LGBT+ causes internationally, such as shelters or medical resources. To summarize, Kors’ could use

29
Michael Kors Holdings Limited. (2018). Form 10-K.
30
"About Us." Michael Kors.
 14
their mission rooted in doing good and promoting diversity to connect with consumers in a unique way,

and to take a stand as a forward-thinking brand.

Michael Kors x Versace

The Runway 2020 strategy that Kors is currently using does not have the originality, creativity, or

trendiness to penetrate the global market; there is no new element in this plan. By doing a groundbreaking

product release that brings the best of Kors and their recent acquisition Versace to the public, they will

spark interest from consumers and high-fashion critics. In recent years, there have been many collaborations

between brands, but rarely are they as diverse as a Versace x Kors collaboration would be. However,

releases such as Comme De Garcons and Converse31 have earned their place in fashion history by bringing

together luxury runway designers and mid-end or accessible design. This collaboration will solidify the

success of their recent acquisitions, and introduce a new way of utilizing and leveraging multiple brands to

drive profits up. This design is not far-fetched and will bring together the artistic strengths of both brands;

Versace X Michael Kors: Design/Sketch Proposal

In this image, Versace touches are added to sleek Kors leather and exceptional handbag design to synthesize

the brands. Versace’s women’s bag offerings are not optimal, and their men’s bags are repetitive despite a

minimal selection. Kors excels in this area, and can boost interest in Versace’s accessories, while Versace’s

worldly, upscale patterns and reputation can elevate the Kors brand internationally.

31
Rath, Julien. "'The Shoe Does a Lot of Marketing on Its Own' – How Converse Uses Niche Stars to Grow
Its Cultural Presence." Business Insider. May 01, 2017. Accessed December 2018.
https://www.businessinsider.com/julien-cahn-how-converse-chuck-taylor-is-using-niche-stars-to-
grow-its-cultural-presence-2017-4.
 15
Works Cited:

"About Us." Michael Kors. Accessed December 2018. https://www.michaelkors.com/info/about-

us/s11400074.

Farrell, Maureen. "Michael Kors IPO: Stock Surges 20% on First Day." CNNMoney. December 15, 2011.
Accessed December 2018. https://money.cnn.com/2011/12/15/markets/michael_kors_ipo/index.htm.

Garcia, Tonya. "Michael Kors' Sales Miss, so Soon after the Versace Acquisition, Has Analysts Worried."
MarketWatch. November 08, 2018. Accessed December 2018.
https://www.marketwatch.com/story/michael-kors-sales-miss-so-soon-after-the-versace-acquisition-has-
analysts-worried-2018-11-07.

"History of Michael Kors." History of Fashion. September 01, 2013. Accessed November 2018.
http://www.fashionintime.org/history-of-michael-kors/.

Idol and Edwards. “Michael Kors: Runway 2020.” Michael Kors Investor Day Presentation, June 9th, 2017.
Accessed through http://investors.michaelkors.com/events-presentations/default.aspx.

IOC. "Lacoste to Celebrate Iconic Olympic Heritage with New Apparel Line - Olympic News." International
Olympic Committee. November 15, 2018. Accessed December 2018.
https://www.olympic.org/news/lacoste-to-celebrate-iconic-olympic-heritage-with-new-apparel-line.

Michael Kors Holdings Limited. (2018). Form 10-K. Retrieved from

http://investors.michaelkors.com/financials/sec-filings/default.aspx.

Michael Kors Holdings Limited. (2017). Form 10-K. Retrieved from

http://investors.michaelkors.com/financials/sec-filings/default.aspx.

Porter, Michael. “The Five Forces That Shape Strategy.” Harvard Business Review January 2008: 3-19.

Rabimov, Stephan. "Fashion Diplomacy At 2018 Winter Olympics: When Uniforms Compete." Forbes.
February 08, 2018. Accessed December 2018.
https://www.forbes.com/sites/stephanrabimov/2018/02/01/fashion-diplomacy-at-2018-winter-olympics-
when-uniforms-compete/#5ebfbb6d500d.

Rath, Julien. "'The Shoe Does a Lot of Marketing on Its Own' – How Converse Uses Niche Stars to Grow Its
Cultural Presence." Business Insider. May 01, 2017. Accessed December 2018.
https://www.businessinsider.com/julien-cahn-how-converse-chuck-taylor-is-using-niche-stars-to-grow-
its-cultural-presence-2017-4.

Rovell, Darren. "Michael Jordan's Agent Tries to Set Record Straight on Original Nike Deal." ESPN. May
04, 2016. Accessed December 2018. http://www.espn.com/nba/story/_/id/15463041/michael-jordan-
agent-tries-set-record-straight-original-nike-deal.

Shazi, Nkosinathi. "10 Most-Watched Sport Events In The History Of Television." HuffPost. February 21,
2018. Accessed December 2018. https://www.huffingtonpost.co.za/2018/02/21/10-most-watched-sport-
events-in-the-history-of-television_a_23367211/.
 16
Solomon, Steven Davidoff. "The Benefits of Incorporating Abroad in an Age of Globalization." The New
York Times. December 20, 2011. Accessed November 2018.
https://dealbook.nytimes.com/2011/12/20/the-benefits-of-incorporating-abroad-in-an-age-of-
globalization/.

"Supply Chain Disclosure." Annual Reports. 2018. Accessed December 2018.

http://investors.michaelkors.com/resources/supply-chain-disclosure/default.aspx.

"Takeaways from the 2017 Michael Kors Investor Day." Coresight Research. June 21, 2017. Accessed
December 2018. https://coresight.com/news/takeaways-2017-michael-kors-investor-day/.

"Michael Kors Holdings Limited Announces Third Quarter Fiscal 2014 Results." Annual Reports. February
4, 2014. Accessed December 2018. http://investors.michaelkors.com/news-releases/news-releases-
details/2014/Michael-Kors-Holdings-Limited-Announces-Third-Quarter-Fiscal-2014-
Results/default.aspx.

Timberlake, Cotten. "Michael Kors Beating European Brands on Their Own Terf." Bloomberg.com. April 4,
2014. Accessed December 2018. https://www.bloomberg.com/news/articles/2014-04-04/michael-kors-
beating-european-brands-on-their-home-turf.

Tyler, Jessica. "Michael Kors Is Buying Versace in a $2.12 Billion Deal. Here's the Complete Story of How
Versace Became so Iconic." Business Insider. September 29, 2018. Accessed November 2018.
https://www.businessinsider.com/michael-kors-buys-versace-brand-history-2018-9.

Wahba, Phil. "Retooled: How Lacoste Became an Upscale Brand Again." Fortune. October 16, 2016.
Accessed December 2018. http://fortune.com/2016/10/16/lacoste-retooled/.

Wahba, Phil. "Michael Kors Closing Up to 125 Stores As Sales Plummet." Fortune. May 31, 2017. Accessed
December 2018. http://fortune.com/2017/05/31/michaelkors-stores/.