After a few days of speculations earlier today it was confirmed that Michael Kors Holdings Limited has bought Versace for more than $2.12 billion! Kors said in a statement that they would change Versace’s name to Capri Holdings. Donatella Versace will stay on as part of the deal, as she has been running the company since the murder of her brother Gianni Versace in 1997. Kors is swiftly growing into a giant fashion force since it acquired Jimmy Choo, a luxury footwear brand, for US$1.2 billion in 2017 as well.
“This is a very exciting moment for Versace,” said Donatella Versace in a statement. “It has been more than 20 years since I took over the company along with my brother Santo and daughter Allegra. 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. Santo, Allegra, and I recognize that this next step will allow Versace to reach its full potential.”
The fashion market is growing swiftly with US$289 billion in global sales last year, according to Bain & Company. It is expected that by 2025, Millennials and Generation Z will make up nearly 40% of luxury goods consumers, according to Deloitte’s 2018 Global powers of luxury goods report. Pam Danziger, a market researcher who has spent her career studying American consumers said: “They’re not drawn to the glitz and glamor of a brand like Versace, they’re looking for something altogether more meaningful and more values-based.”
“Part of the secret is knowing what to leverage across brands and knowing what to leave alone,” Pedraza said. “Versace is one of the brands that has a real iconic look. It’s unmistakable, and that needs to be nurtured. These luxury brands became great by being controlled by visionaries, not by what they were racking up monthly in sales,” Danziger said.