The new paths and directions of the luxury market

“I want to make sure that Versace will remain Italian, Made in Italy and that it will maintain the glamorous, daring and inclusive attitude that made everyone love it. This is just the beginning of an exciting new adventure that I hope you will live with me. “

It was with these words that Donatella Versace commented on the news published last week that the American brand Michael Kors took control of the brand founded by Gianni Versace in 1978. The deal, estimated at more than 8.9 billion reais, without a doubt, marks the end of an era in the fashion universe and points to new paths and directions, establishing the beginning of a new time and serving as a lesson and example for all companies in the industry.

This is a new time that emphasizes the value of the great conglomerates of the sector. Unsurprisingly, the LVMH group, which owns brands such as Louis Vuitton and Moët & Chandon, is the world’s leading luxury organization. Its wide range of brands and the positive results that follow each year make LVMH the most prestigious icon in the world luxury sector.

Michael Kors, with the recent acquisition of Versace, is taking extensive steps to consolidate in this territory. Although the Italian essence of the brand really should remain, as Donatella assured, the brand is now managed by a management standard Made in the USA and this will certainly promote significant changes in the business model of Versace.

This disruption in its history also ends the fact that the brand, since its origin, was administered by the family. If tragedy has always accompanied the saga of the Versace family, talent and creativity have also always been at their side contributing to make the label a symbol of contemporary fashion.

There is no doubt that the negotiation involved a lot of money. However, as everyone knows, success in the luxury market goes far beyond financial returns. If the future will be brilliant for Versace, as with its past, only the future will tell.

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