Famed New York City fashion designer and ‘All-American’ brand Michael Kors reported an incredible 43% rise in first quarter sales compared to this time last year.
World renowned for his role as a judge on America’s ‘Project Runway’, Kors has been basking in the success of his popularity and toying with billionaire status over the last few years. Since its 1981 launch, Michael Kors has skyrocketed within the last decade, making the designer a household name in the fashion world. On the surface, this company has everything. However, by widening the consumer market to outlet stores at varying price ranges, the company may be heading for a crash in the near future.
For a designer fashion label, is there such thing as too much popularity? Kors offers a luxury lifestyle that is affordable to the masses, and with this type of worldwide exposure, many find themselves wanting a piece of the Michael Kors label.
To the pleasure of consumers, Michael Kors has price points at both ends of the fashion market spectrum and all the areas in-between; but this might just be the grey area that leads to a downfall. When everyone can own a own Michael Kors, the brand may start to lose its sense of designer luxury and, with it, a large part of its original customer base.
Providing affordable luxury goods that range from runway to Apple products (iPad cases, iPhone cases, Laptop bags…etc), one can argue that the brand has become too accessible, and too quickly, leading to the question over the brands longevity in the future. Some might say that Michael Kors is heading down a similar path to Tommy Hilfiger in the 1990’s, which ultimately led to a sales decline due to overexposure.
With that being said, Michael Kors is still overpowering sales estimates and bringing in profits among revenues and shares. They have been competing and taking shares from Coach, which is experiencing a similar fate of devaluing due to outlet overexposure.
For the moment, Kors’ billion dollar empire is still gaining more success and customers, as evidenced by this first quarters sales. Kors has opened 115 stores worldwide across 74 countries, one of which is located on London’s Regent Street.
Last month, a new 15,000 sq ft flagship store was announced that will also be placed on Regent Street, becoming Michael Kors‘ largest store in Europe. Set to open in autumn 2015, customers will be excited to see all that the brand has to offer across 3 floors. Let’s just hope that this ‘go big or go home’ business model doesn’t result in the latter for this ambitious designer.
Written by Chelsea Davis. Image source styledemocracy.com