Versace is a famous clothing brand. It is based in Milan, Italy. As a flagship store, Versace was founded in 1978 by Gianni Versace. It is one of the world’s largest selling clothing brands. The company has a huge customer base and, one of the best clothing accessories as compared to competitors. The brand has diversified itself to become one of the most liked among its customers. Today, the brand has a global reach in more than 40 countries and has more than 1500 retailers and wholesalers worldwide. Versace has a brand value of $2 Billion and a brand revenue of approximately $1 Billion. It offers both clothing and accessories as its prime products. It is famous for its innovative designs and symbolic fashion prints recognized globally. The brand is the subsidiary of Michael Kors.
This article will discuss the historical evolution of the brand, its marketing strategy, and points on which the brand has an edge over its competitors. The article will also discuss stats and facts about the company and, much more.
BACKGROUND OF VERSACE
Back in 1978, this versatile brand came into existence. At the age of only 9, Gianni made his first dress – a blue one-shoulder evening gown. The unique aspect of that dress was that Princess Diana wore a version of that creation some 40 years later. In 1973, he relocated to Milan. At the age of 26, he started working for “Byblos”, a youthful line for Genny. Later in 1978, he established his own boutique in Milan’s Via Della Spiga, the main shopping street in Milan.
Gianni exploded onto the scene over the next decade. He totally revolutionized the fashion industry. He was the first in using multiple elements like lace and leather to metal studs and Swarovski crystals in the same dress. The company introduced many other products like jewelry, home furnishing and, accessories in 1982. It also expanded to China. The brand launched its famous black Versace dress of Elizabeth Hurley in 1994 and was recognized globally. The brand launched stage costumes and album cover costumes for Elton John in 1992.
It also designed clothing for the Princess of Wales and Princess Caroline of Monaco. In 2000, its dress “green Versace dress” got a lot of praise globally and was voted as the “fifth most iconic dress of all time” in 2008. The company saw many management changes during 2003-2015 and eventually in May 2016, the Versace Group appointed Mr. Jonathan Akeroyd to the position of CEO and member of the company’s Board of Directors. The Blackstone Group purchased a 20 percent stake in Versace for €210 million in February 2014. Later in September 2018, Michael Kors bought 100 percent shares of the company.
UNIQUES ASPECT ABOUT GIANNI VERSACE
Gianni was a mastermind in advertising the products of the company. He intelligently showcased Versace’s product in fashion shows in Paris and NewYork on a frequent basis. He used only supermodels and high-level photographers to make his campaigns stand out above the rest. It also owns the Palazzo Hotel in Dubai showing the brand’s vision to diversify itself in the global market.
BUSINESS MODEL OF VERSACE
It has diversified itself by offering luxury items like handbags, perfumes, cellphones, apparel, footwear, and many other products. The brand also produces upmarket Italian-made ready-to-wear and leather accessories. Another feature of the business model of the company is that it has not concentrated on a single product for its brand identity. The distribution model of the company is designed on modern product lines. It believes that by nurturing strong relationships especially in the Middle East market like Dubai, the company can create a strong brand identity and, can come up with unique pieces that are very exclusive.
It has introduced Versace Home and is successfully showcasssing products in Dubai.
CURRENT BRAND IDENTITY OF VERSACE
Versace has emerged strongly from the 2010-2011 financial crisis and is trying to concentrate on luxury and exclusive fashion items for its products. These products are designed keeping in view the core concepts of creativity and modernization. This has also allowed the company to ramp up its retailing and distribution activities, not across the Middle East but also around the world where the customers are possessing brand loving nature.
It also owns the Palazzo Hotel in Dubai showing the brand’s vision to diversify itself in the global market.
The brand has 1500 boutiques worldwide. The logo of the company is made up of the head of Medusa, a Greek mythological figure. It reflects the brand’s effort to reach a level, which is difficult to reach for fashion grassroots.
MARKETING MIX OF VERSACE
The marketing strategy of Versace evolves around:
The brand offers luxury and high-quality products to its customers. The products of the company show the intent of offering customers with products of their social bonding on most occasions.
The products of the brand are expensive but worthy. Customers with high paying capacity are the prime customers of the company.
The brand selects and targets locations that can afford to pay the price the brand demands. It has retail stores in countries and has chosen the Middle East as a prime market for offering its products.
Versace uses both digital and traditional modes of marketing to offer its products. The company sponsors fashion shows in most advanced countries of the world and selects places like Paris and Newyork for this purpose. The company has utilized social media platforms like Facebook, Twitter, Linkedin, Pinterest, and Youtube for promoting its brand identity.
Founded: 1978 by Gianni Versace
Headquartes: Milan, Italy
CEO: Jonathan Akeroyd
Slogan: Fashion till death
Hats & Gloves
Versace X Pride Collection
Summer Capsule Collection
Versace is still in the phase of revamping. It is still looking for markets where it can offer its diversified range of products. The initiatives of its new management since 2011, has rapidly brought positive results for the company and as a subsidiary of Michael Kors, it is now in a position to challenge its competitors. The portfolio of the company suggests strongly that it is one of the best selling brands in the world at present. The innovation and creative strategies of the team can trigger positive results in the future. Still, the company needs to refocus its strategy of concentrating only on the Middle East market and, expand itself to other economies of the world.