Versace is a trophy brand and I can imagine many a green eye coming from the offices of LVMH, Kering and other fashion conglomerates asking why they hadn’t claimed this prize themselves. While the price isn’t a snip - approximately US$2.12 billion - and nobody knows the details of Donatella’s contract - it would have be something special in order to entice her to sell the family’s 80% stake - it is one of the few brands which resonates on to the lips and minds of everyday consumers. This happens for very few brands and is very hard to achieve.
Left - In Donatella's image? Versace advertising
Versace has a strong identity and tropes which are continually referenced - you only have to look at the continual ‘baroque’ collections from ASOS, Boohoo and River Island to see that - yet it never seems to fully capitalise on them itself. It can’t turn that into money. The profits are small - 15 million euro in 2017 - and it was always a brand which seemed to play musical chairs with its store portfolio; continually opening and closing stores.
On the other hand, Michael Kors is a well run accessorises company. The minute they knew their mid-market brand had peaked, and their market was saturated, they started closing stores - between 100 and 125 over two years. They knew the landscape changed, the brand was fatigued, and you need to make hay while the sun shines, which they’ve done. It’s knowing when to start putting your money into new areas and elevating. Everything is about ‘elevating’ ATM!
The confidence of buying Jimmy Choo, and that seems to be doing well, has maintained the momentum of this spending spree. While not likely partners, many groups have disparate brands and, if Michael Kors knows one thing, it’s how to grow.
John D. Idol, Chairman and Chief Executive Officer of Michael Kors Holdings Limited, said, “With the full resources of our group, we believe that Versace will grow to over US$2.0 billion in revenues (from 668 million euro currently). We believe that the strength of the Michael Kors and Jimmy Choo brands, and the acquisition of Versace, position us to deliver multiple years of revenue and earnings growth.”
“Donatella’s iconic style is at the heart of the design aesthetic of Versace. She will continue to lead the company’s creative vision.” he says.
It’s interesting to remember LVMH used to own a third of Michael Kors before he went for the masstige market and the company blew up and he was also the Creative Director of the LVMH owned Celine in the late 1990s.
The new group will be called ‘Capri Holdings Limited’. (Didn’t Michael Kors once do a mink beach towel with ‘CAPRI’ on it?) The new group says there is an opportunity to grow the group’s revenues to US$8.0 billion in the long-term, which would make it one of the largest fashion companies.
Right - Vintage Versace advertising - Gianni Versace is forever associated with the Supermodels
Donatella Versace says, “Santo (brother), Allegra (daughter) and I will become shareholders in Capri Holdings Limited. This demonstrates our belief in the long-term success of Versace and commitment to this new global fashion luxury group.”
Michael Kors’ expertise is accessorises. They say they want to expand Versace men’s and women’s accessories and footwear from 35% to 60% of revenues. Versace has never really resonated in these areas, often looking more tacky than desirable. Jimmy Choo will also offer synergies in luxury footwear and bags.
There’s also going to be a filip back to dressing up at some point and Versace is well placed, particularly in a sexually charged, Italian way.
As for more affordable products, they could expand underwear, home, sunglasses and perfume. The perfumes, since the very beginning, have never matched the quality and branding of the rest of the brand. Versace needs to choose areas and do them well, rather than the light licensing it has often achieved since its inception in 1978. Versace was one of those brands that had such disparate product - from cheap looking tins of perfume to the most luxurious Italian printed silk.
Capri Holdings say they want to “build on Versace’s luxury runway momentum”, - *books Supermodels* - and want to be less reliant on its home market of the US, grow in Asia and become more global.
Versace must have had numerous takeover offers through the years and it would be interesting to know the reasons of, why now? Why Michael Kors? The brand is 40 this year, so maybe the family want to fully maximise its potential, maybe it was pressure from the private equity investors to get out, or maybe it’s the realisation that you have to turn into a billion dollar brand to survive. Grow or die.
Below - The Versace ladies by Steven Meisel
This article isn’t a discussion on the pros and cons of real fur and offers no moral viewpoint on its use. I acknowledge that this contentious issue/material is divisive and has passion on both sides.
The real ‘fur’ industry has seen massive growth, since the beginning of this century, driven by international consumers and trims on accessories and coats. It is now a $40 billion industry. It was inevitable that it would have a backlash and there would be a reaction to it, most notably from younger consumers.
I put ‘fur’ into speech marks because it’s a very broad term and while some brands may no longer use mink they continue to use the skins of other animals and there’s no definitive reason for the choice of some animals making the used list and not the others. Read more here - ChicGeek Comment Fur Debate: You Either Use Animals Or You Don’t
Brands such as Gucci, Versace and Martin Margiela have decided to announce they will no longer use real fur. Donatella Versace recently said, “Fur? I am out of that,” she said. “I don’t want to kill animals to make fashion. It doesn’t feel right.”
“Naturally we were disappointed to hear that Versace has said it won’t use real fur in collections. However, the majority of top designers will continue to work with fur as they know it is a natural product that is produced responsibly. When Donatella Versace says ‘I don’t want to kill animals to make fashion.’ presumably her company will soon stop using silk and leather?” says Andrea Martin from the British Fur Trade Association.
“It is disingenuous to claim that leather is a by-product of the meat industry, a cow still had to die to provide the product. Silk cocoons are placed in boiling water to help unravel the thread with the silk worm inside,” says Martin.
Italian accessories brand Furla has formally declared that it will be banning fur from its collections from November of this year, which would coincide with the launch of its Cruise ’19 collections. This follows decisions by Michael Kors and Yoox Net-A-Porter, which has declared that all its stores and websites would be real fur-free zones.
“I think some of the brands have gone fur free under pressure from anti-fur trends, and some are genuinely concerned. If brands don’t want to use animals for fashion then they need to consider leather, exotic skins, silk, sheepskin, makeup and products, all of which use animals. I also think human welfare is important to consider when producing fashion, and this often gets forgotten.” says Rebecca Bradley, a London based fur designer.
So, why are luxury brands really dropping the use of real fur?
I think it is pure economics and the high margin greed of today’s luxury industry. It’s the same reason many restaurants are pushing vegetarian and vegan options: the margins are higher and therefore the profit. By charging slightly lower prices for something which is much cheaper to make, the margins increase. There are only so many €25,000 full-fur coats a brand will sell and the ceiling price is sensitive, so you can’t factor in the same margins you would on your other products. If you make it in faux-fur you'll get a higher margin and a bigger percentage of profit. You’ll also sell more and probably generate more money overall.
The irony is, the reason a real fur coat is so expensive is because of the high welfare standards of the European producers. Luxury brands wouldn’t be able to use cheaper real-fur from other sources witout criticism and scrutiny.
“Fur coats may seem expensive, however the price of a fur coat should reflect a high standard of animal welfare, and therefore with a beautiful, high quality fur, many skilled people are involved with production, including a furrier, and finisher to create a fur coat that will last for many generations, ” says Bradley.
Fur, for the majority of brands, is a very small part of their businesses and therefore it’s not difficult to heroically declare you’re no longer going to use it. It’s also easily replaced by a cheaper, synthetic alternative while not altering the price very much or at all. You can paint the use of a fake fur trim as an ethical choice rather than a cost saver to the consumer. It’s cynical I know, but it’s working.
PETA’s Director, Elisa Allen, says, “Fur is dead, dead, dead. As well as making sense for designers' conscience, ditching fur makes business sense, as today's consumers are demanding animal and eco-friendly clothing for which no animal has been electrocuted, strangled, or caught in a steel-jaw trap. From Armani to Versace, the list of fur-free designers is growing every day, and innovative vegan fashion is on the rise. The tide has turned irrevocably, and there's no going back.”
Many brands used the word ‘sustainable’ when announcing their decision to no longer use real-fur, but again, this is another term in fashion that is very broad and has little full meaning until you see the detail. I’m not sure a fake fur coat is particularly sustainable, but then again it does depend on the material.
But, you also have to acknowledge that nobody needs to wear a real fur coat. We could easily survive without real fur, but it’s interesting how, out of all the animal products we use, this is one of the most offensive to some and creates the biggest reactions and protests.
The real fur industry continues to grow in China and with other newly rich consumers and markets. It is now a US$17 billion-a-year industry in China and Haining, near Shanghai, is its hub.. Fur companies will be a bit like tobacco companies: the falling sales in established markets will be replaced by growing sales in new and even bigger markets in Asia.
Chinese animal welfare standards are very different from European standards. European producers have very strict regulations and it’s an industry which has to be transparent in order to ward off criticism.
“We respect the fashion industry’s attempts to become more responsible for the products they produce. Animal welfare is of critical importance and the fur produced is farmed to the highest welfare standards.” says Martin.
“With growing concern about the environment and plastics we believe it is more responsible to move back to the use of natural, biodegradable materials. Fur is the natural and responsible choice for designers and consumers.” says Martin.
Ditching fur is quite a lazy way for luxury brands to try to be more ‘sustainable’ and look like they care about the environment.
“I think that companies and consumers becoming educated and aware of origins of products and materials is a fantastic thing, but the focus needs to be across the board, ensuring standards of human, or animal welfare and environmental impact.” says Bradley.
Many brands are seeing real fur as something they live without and it’s more hassle than it’s worth if the profit and quantities aren’t there. You can pick holes into both sides of the fur debate. While a positive move for many, the decision to no longer use real fur is really a cleverly spun business decision and driven by their continued obsession for huge margins.
Read more expert ChicGeek Comments - here
Let’s make something clear, Marc Jacobs is a great designer, yet his business is struggling. Why is this? Business of Fashion said, on Tuesday, the label announced its decision to shutter its men’s business, ending a license agreement with Staff International, after the delivery of the Autumn/Winter 2017 season.
Okay, Marc Jacobs menswear had disappeared recently and, to be honest, it never really have any identity and this is ultimately Marc Jacobs’ problem.
Left - Marc Jacobs going out with a Bang, now discontinued
One of the biggest designers in the world and he has difficulty establishing his own brand. Karl Lagerfeld has always been the same, but that’s a whole other ChicGeek comment.
I knew something was wrong when I went to a Coty fragrance launch, last year, and asked how the Marc Jacobs Bang fragrance was doing. They said they’d discontinued it. I was surprised because, firstly, the bottle was great and the black peppery fragrance was very wearable and commerical. Maybe it was those naked ads, starring the man himself, that tipped it over the edge!
Marc Jacobs has done a lot of things: he put Grunge on the catwalk, but unfortunately you’ll never make money from grunge, he pioneered Louis Vuitton’s ready-to-wear and introduced many great collaborations, such as Stephen Sprouse, those leopard print-type scarves were everywhere, but he’s never really owned anything. You can’t point to something and say “that’s very Marc Jacobs” which is when a brand or designer because part of the visual language and, ultimately, means longevity and heritage.
In the early 00s it was all about the Stam handbags, which were expensive, then Marc by Marc Jacobs came along and everything was really cheap. He seemed to miss the middle, sweet spot that Michael Kors has come to dominate. He was either really expensive or pocket-money cheap and that confused the brand. You never felt like spending money on Marc Jacobs.
The fashion probably wasn't expensive looking enough for the clientele who buy designer clothes the world over and when the only shop left on the street in New York that you pioneered is a book shop - BookMarc - great name BTW - it seems as though this is a signifier of how tough things are to make money from ready-to-wear even when your name is established.
The bad news is it’s only going to get more difficult in the next few years in American fashion. Calvin Klein is hoping for a resurgence thanks to Raf Simons, Donna Karan has new owners, that will no doubt start investing heavily and Ralph Lauren is bound to hit bottom soon. They’re all chasing the same customers and competition is difficult in a saturated market. Marc Jacobs needs to decide where is wants to sit within the fashion market and aim for that. Or, hope check shirts make a major comeback!
Mr rose gold himself, Michael Kors, has been the billion dollar unicorn of the fashion industry with his ubiquitous bags and watches. His menswear has never really gained much traction, but his fragrances have always been pretty reliable. This is packaged as before, but in a blue colourway.
It opens with black pepper and nutmeg, then a middle of cypress and clary sage and, finally, a base of orris and tonka bean.
TheChicGeek says, “I must be getting old because I can’t remember the last time I had an ‘Extreme Night’. I think Michael Kors' idea of an extreme night out might be a bit more glamorous than ours.
The first thought I had when I smelt this was tonka bean. It does revolve around this, but has a soft aromatic quality which is fresh and green and smells cooling. Fans of Jean Paul Gaultier’s Le Male will like this”.
Left - Michael Kors Extreme Night For Men - 120ml - £70
TheChicGeek talks a buzzy Pitti Uomo in Florence, how the major brands were domestic, Zegna looking around again after their foray into high fashion and why Michael Kors is the fashion brand of this decade. Enjoy!
Looking as hot as the donuts! TheChicGeek is as bold as a tequila sunrise in this OOTD.
Taking his cue from the new romantic mood in menswear, TheChicGeek makes flower corsages and feathers the latest must-have menswear accessories when worn with bright silks, beautiful patterns and colours.
Unpinned with a sharply tailored jacket, let your imagine run wild and escape to a place where there is no limit to male display. Join the Peacock Revolution!
Get involved #PeacockGeek
Credits - Jacket - French Connection Exclusive to Moss Bros, Coral Pin - Tateossian, Shell Shirt - Scotch & Soda, Floral Sweater - Scotch & Soda, Feather Necklace - River Island, Spectacles - Cazal, Watch - Storm London, Bracelet - Tateossian, Belt - Rokit, Trousers - Scotch & Soda, Trainers - Replay, Socks - Item M6, Extreme Blue Fragrance - Michael Kors, Body Defence Sunscreen - Zelens
Shot by Robin Forster on OlympusPEN
Check out more images and the video below
Make your own Gucci-style corsage here