CASE STUDY 2018
Executive summary
The case study of the Italian brand Versace is undertaken to understand the current positioning
of the brand, identify the challenging areas and procure solutions by developing a renewed
marketing and communication strategy. Capri Holdings [Originally Michael Kors Corp.] currently
own the brand which is artistically headed by Donatella Versace (The Economist,2018).
According to this same report, the previous year Versace took a major hit in sales which lead
to this purchase as the brand was previously owned by the Versace Family ( 80% Stake) and
Blackstone, one of the largest private equity firms in the world (20% stake). There remains
severe skepticism from fans of the Italian luxury house regarding this purchase, thus an in-
depth analysis is conducted of the brand and its competitive environment. After exploring the
possiblities of Capri Holding's investment and promise, it is believed that Versace can still retain
itself in the market and further continue its expansion plan. With the exceeding luxury prices, an
influence from the young American conglomerate could help Versace to explore new horizons
and cater to a younger millennial clientele through a strong social media presence and using
the current the DNA of the brand in a more upbeat manner as well as creating collaborations
with high-end streetwear brands and prominent influencers along with building a rentals
to millennials portal which would bring Versace in sync with the changes that will shape the
fashion industry in the near future much in advance from the other luxury houses. The given
suggestions will communicate Versace's brand identity in a renewed way and appeal to a wider
public, projecting Versace as a responsible but trendy brand and eventually boost sales again.
This strategy might seem less luxury oritented but with the slowly evolving mindset of the
younger generation will give Versace the position it deserves in the market.
Table of Contents
0. Introduction ................................................................................................... 7
1. Internal Analysis..............................................................................................8
1.1Internal Analysis- Brand DNA & Values......................................................... 9
1.2Internal Analysis- Target Customer...............................................................10
1.3 Internal Analysis- Product Portfolio ............................................................12
1.4Internal Analysis- BCG Matrix......................................................................14
1.5 Internal Analysis- Distribution Channels......................................................15
1.6Internal Analysis- Geographic Locations......................................................16
2.External Analysis............................................................................................18
2.1. PESTEL......................................................................................................19
2.2Competitive Mapping....................................................................................20
3 Communication Strategy Diagnosis...............................................................22
3.1 Communication Positioning .......................................................................23
3.2 Visual Merchandising and Store Display.....................................................24
3.3 Social Media................................................................................................25
3.4 Social Media Analysis.................................................................................26
3.5 Website.......................................................................................................27
3.6. Website and Catalogue Analysis................................................................28
4.Swot Analysis................................................................................................30
5.Marketing and Communication Strategy........................................................32
5.1Recommended Target..................................................................................33
5.2 KIPPERS.....................................................................................................34
5.3KMIB............................................................................................................35
5.4 Market trends .............................................................................................36
6.4P’s Plan........................................................................................................39
6.1 Distribution Strategy....................................................................................40
6.2 Distribution Strategy- Collaboration Streetwear Brand ..............................41
6.3 Off-white c/o Versace..................................................................................42
7. Conclusion ...................................................................................................44
8. References ...................................................................................................45
9. Iconography .................................................................................................46
10. Bibliography ...............................................................................................48
11. Appendice 1 ...............................................................................................50
12. Appendice 2 ...............................................................................................52
13. Appendice 3................................................................................................53
14. Appendice 4................................................................................................54
Introduction

This report aims at providing a detailed analysis of the marketing and communication
strategies currently undertaken by Versace for detecting the challenging areas and
possible growth opportunities in the market. The report will underline possible solutions
and a revised 4P'S plan that the brand can implement in order to improve overall brand
performance and re-establish its luxury positioning as the new takeover of Capri Holdings
has unsettled Versace's luxury image to a certain extent. Capri Holdings has until now
manufactured in developing nations like China. This could potentially dilute Versace's
status in the market ( The conversation, 2018).However, where lies a challenge also lies an
opportunity for growth and the new investment from Capri Holdings could help Versace
dwell further into the space for innovative digital marketing strategies that revolve around
products. For this purpose both primary and secondary research is conducted for Versace.
Primary research done via the store observation along with Versace's own website and
thier diffused lines as well as thier stores. Secondary research is done by reviewing several
books and critically referenced online magazines and journals to ensure reliablity of
information and reassure the entire report.

7
 BRAND DNA & VALUES

PHYSIQUE SELF-IMAGE RELATIONSHIP

- Iconic Medusa Logo - Empowering
- celebrity driven brand
- Italian tailoring & finishing - Efficient & updated
- serves high quality
-Intricate Golden Floral motifs - Passionate
-consists of two lines- Main line
- animal prints & textures
& Versus (younger line)
-leather goods & accessories
- evening dresses

PART 1: INTERNAL ANALYSIS

PERSONALITY CULTURE REFLECTED CUSTOMER

- Italian heritage - Maximalism - Different customer base for
-strong -luxury different lines.
-sensual -Rock & Roll -But for the Versace universe
-overwhelming - ready -to-wear men women and children who
-original -global believe in the Italian heritage
- Prefer high quality and premi-
um products.
- young to middle age clientele.
-prefer classics
- exclusive and stand out pieces

Also see Appendix 1

8 9
TARGET CUSTOMER

The Versace Female Customer of today can be de-

scribed as :
- Aged between 23 to 45
- Italian, French & International
-Elegant and edgy
- With a strong personality and dynamic character.
-Trend and quality oriented.
- Middle to High Income
-Loves Made in Italy products.
- Fond of leather goods
- Always seeking classic items with a stern attitude to
add to her wardrobe.
- Living in Urban cities.

The customer segment of Versace can be percieved as very

broad and caters to a large segment of the market espei-
Jessica
cally with the introduction of the Versus line which is aimed
35 years Old Upper Class
at the younger generation. The influence of this line slightly
She lives in New York , owner of a bueaty salon, income
mixes the Versace market in general as the original target
of 10,000$/ month and supported by hundband who
itself isnt for a very older clientele. Versace’s omni-channel
receives an income of 25,000$/ month.
distribution pattern attracts buyers of different age groups
Activities: like travelling a lot, going to fancy bars and
to both the lines due to this overlap due to the pricing strat-
restaurants with her friends, shopping every weekned.
egy which places Versace at a very premium level while Ver-
work out three times per
sus has much lower price points putting it in different com-
week.
petitive environment. Thus a more clear distinction with
Personality: outgoing, self assured, confident, sociable,
the right marketing could help widen the gap between the
educated, strong, loyal, respectful, up to date, passion-
two target markets and help reassert the target groups.
ate.
Versace is often used by the young millenials as well as Ver-
Style: fashionable, modern, sexy, chic.
sus doesnt seem to provide the same high quality and lux-
Social Media: active on instagram and snapchat.
ury feel. The lack of this gap could prove difficult from the
Brands she shops:DIOR \BALMAIN\ LOUBOUTIN
innovation perspective and thus the marketing strategies
could lack the punch needed for Versace to expand further.
The new takeover from Capri Holdings is likely to bring
fluctuations in the client base of Versace as well as loyal cli-
ents are lacking faith in the brands ability to retain its luxury
positioning in the market and maintain its Italian heritage.

10 11
PRODUCT PORTFOLIO

12 13
BCG MATRIX DISTRIBUTION CHANNELS

Versace’s boutique operates at 45, Avenue Mon-

taigne in Paris which is alongside the boutiques of
all luxury brands and will help Versace to maintain
its premium positioning. Young Versace (for chil-
dren) and Versus have thier stores in Boulevard St.
Germain in Paris. This location as well communi-
cates a premium positioning for the brand. Along
with retail stores in Paris, Versace is also sold in Gal-
leries Lafayette, Printemps, Le Bon Marche, Moda
Operandi, Bergdof Goodman, Saks 5th Avenue,
La Rinascente, Farfetch, Ssense and many other
multibrand outlets online and offline. The main
flagship store is in Galleria Vittorio Emanuelle in
Milan alongside another in Via Montanapoleone II.

generates the most revenue to the These products have high potential
brand. but are not well developed by the
Market Growth

Popular sellers include bags, tops, brand.

shirts, dresses, jeans and shoes.

Well-selling products, that are Low presence in the market

not particularly famous, but and low potential as well due
provide constant cash flow. to competition

Market Share

14 15
GEOGRAPHIC LOCATIONS

The distribution channels played an important role in increasing the competitive edge of the
brand. The Italian Versace fashion house holds the sales activities and commercial presence. The
sales, distribution, and the retail departments are managed in the American, APAC, and EMEA
regions. Before 1991, all the company stores were based in Italy. Glasgow, Scotland was the first
place outside Italy where Versace opened a retail store. After the Glasgow store, the company
started expanding globally. It distributes its products through the global network that entails over
1500 whole sellers and over 180 boutiques (Mosca, Civera, and Casalegno 2018). In 2015, the com-
pany combined with H&M and created an accessory and clothing line that would be distributed
by both companies. Versace has also joined the technological movement and has created an of
cial website where consumers can browse through the available accessories, shoes, and clothing.
The individuals purchase the products online and the company provides the delivery services.

16
 PESTEL
POLITICAL

-Terrorist attacks
-Emmanuel Macron election (centrist)
-reforming labor Market regulations
-enhancement of free trade regulations

ECONOMICAL

-reducing energy costs

-weakening of euro
PART 2: EXTERNAL ANALYSIS -high unemployment rate 9,7% (Eurostat, 2017)
-high taxes for companies
-corporate tax is projected to be reduce from 33% to 25

SOCIAL

-unstable social climate

-33,000,000 Facebook subscribers, 50.8% penetration rate
-population size: 64,938,716 (Internet World Stats, 2017)
-France is second in the world for international spending on luxury goods (Roberts, 2017) increasing
urban population globally and in France (EYGM Limited, 2017)
- Trends playing a big role in shaping choices of Millenial consumers.

TECHNOLOGICAL

-supporting French technology is important part of Macron’s agenda

- 56,367,330 Internet users on March/2017, 86.8% penetration (Internet World Stats, 2017)
- growing e-commerce

ENVIRONMENTAL

-environment and focus on sustainability – part of Macron’s political declaration (Slavin, 2017)
-corporate duty of care law
-France is transiting towards more environmental friendly energy sources (Dearden, 2017)
-sustainability consciousness among consumers
LEGAL

-labour law has been reformed (open-ended contract)

-EU legislation GDPR (General Data Protection Regulation) (Nadeau, 2017)
Also see Appendix 2
18 19
COMPETITIVE MAPPING

High Price

Commer- Alternative
cial and and
trending Classic

Low Price
(Appendix 3: Competitive Mapping
Rationale)
20
 COMMUNICATION POSITIONNING

COMMUNICATION STRATEGY DIAGNOSIS

This is a cut out from Versace’s most recent 2018-19 Campaign shot by Steven Misel (L’of-
ficiel Paris, 2018). The campaign features 54 models cast across it as labelled the entire
‘Versace Clan’. The bright colors and larger than life prints re-inforce the Versace
extravanza and help to retain the image of a maximalist brand. This is known to be Ver-
sace’s longest ad-campaign and its vastness continues to suggest the growing Versace
family, re-introducing the Italian ideals of family and love. Another thing that hasn’t been
left off the campaign is the glamorous touch with Celebrity models like Gigi Hadid and
Kaia Gerber amongst others. This proves that Versace has a strong sense of communica-
tion despite its takeover and doesnt seem to have lost out on its DNA. The inclusion of
such a campaign also shows how Versace is being updated and embracing Pop Culture
and without straying too far off from its ‘Rock & Roll’ style,
has incorporated these upbeat styles.

22 23
 VISUAL MERCHANDISING & STORE DISPLAY SOCIAL MEDIA

Spacious- Gold oriented- Modern- Luxu-

rious

The Versace Boutique in Paris’ Avenue

Montaige is very clean and luxurious. The
floors have antique patterns which are a
reminder of the excessive prints that Ver-
sace uses in thier designs with a luxurious
heritage Palace kind of feel. The interiors
are very modern with white walls, limited
lighting, gold and marble shelves which
show that the store was probably re-done
in the recent years to maintain its heritage
look but co-incide more with a clientele that
would like to see some elegance. The store
while very luxurious doesnt exactly com-
municate the Versace linguistic and could
definitely use some improvements to rein-
force the Versace identity in a modern way.

FOLLOWERS - 15.2 M

AVERAGE POSTS PER DAY- 2

The merchandising is very sophisti-
cated and organised well, which is
indeed appealing to the millenial
MINIMUM LIKES- 30K
clientele. A TV is constantly show-
casing the recent runway shows,
which is indeed informative but
again could be avoided to maintain
a more premium outlook. The visual
design is slightly too minimalist for
an exaggerated brand like Versace.
The bags are displayed in the lower
shelves of the cabinet and not in
perfect eyesight of the consumer,
showcasing a strong need to rede-
sign as customers would have to
bend to notice the bags.

24 25
SOCIAL MEDIA ANALYSIS WEBSITE

Versace’s social media is very effective. The effect of Donatella Versace herself on the
page is tremendous and is a good communication strategy as it connects well with the
audience. Versace has a 15.2 M follower base which is higher than Balmain’s 8.8M , Ro-
berto Cavalli’s 5.2 M and Philipp Plein’s 547K Follower Base. However there is a scope to
improve given that Gucci holds a 30.2M Follower base with Dior and Louis Vuitton slightly
behind at 22.5 and 25M Followers on Instagram. Content creation is very rapid, which is
a good sign for Versace, however the posts are slightly disorganised and can use a stron-
ger co-herence. For example a lot of Atelier Versace’s clothes and Versace for Children is
mixed while they are diffused lines of the house which can confuse the audience. Along
with that some collections seem too long and rapid which can create a lack of interest in
the audience. While the extravagance is coherent with the DNA, interesting still life shoot
pictures for the products itself along with a subtle re-inforcement of the Rock & Roll style
could be interesting. Homeproducts are also advertised on this instagram page, which
shows a lack of link and connection. The use of ‘IGTV’ and Live stories is very interesting
and effective. More inspirational mood boards can be added to the mix to engage the
audience into the creative process along with certain videos of the Italian craftsmanship
with Pop culture music could definitely boost Versace’s luxury value in a modern way.

Organised - Updated - Easy to Use - Mobile Compatible - Fast

26 27
 WEBSITE & CATALOGUE ANALYSIS

The website is very easy to use and informative. It The catalogue is very thick and comprehensive
is frequently updated and is an e-commerce plat- witha good high quality paper and brilliant
form. It is while modern and sophisticated slight- color print to show the campaign photos and
ly understated for Versace’s extravagant styles. products. Its sleek and modern, very sophisti-
The window is mobile compatible also with dull cated. The lookbook is produced every season
grey background. It lists all the Versace products with the influx of new products. It is presented
with store locations as well. A strong page for in a black box with ‘Versace’ written across it
the background is written and re-directed pag- which is very elegant.
es to social media like instagram, facebook and
twitter to make it userfriendly. Pictures of the
products are presented in good high resolution
and the page loads quicky which shows Versace’s
efficiency. However Versace can add a few vid-
eos not only of the runways but possible inter-
views with popstars and other celebrities along
with some bloggers to make it more upbeat.

28
 STRENGTHS

-Strong historical background

- Global presence
- Awareness amongst French
- Products are offered in coherence with the current trends
- Well established positioning
-Celebrity support and endorsements.
- Expert team of stylists and designers
-Technology is used and social media presence is very active and effective
- Has Italian heritage and promotes family values.

WEAKNESSES
-Owned by an American firm, altering brand identity.
- Dissection of clientele between Versus and Versace line.
- Limited Innovation due to only Donatella’s creative vision since the death of Gianni Versace.

OPPORTUNITIES
-The biggest opportunity lies for Versace in reaffirming the Italian identity despite American owners.
- Making more collaborations with high-end streetwear labels like Off-white
- Launching an e-commerce portal for rentals of Atelier Versace garments and Versace accessories
which will crash the budding 2nd hand market and other rental portals selling Versace- will give them
first mover advantage amongst other luxury brands.
SWOT ANALYSIS -growing urban population in France (EYGM Limited, 2017)
- Entering the beauty and cosmetics segment in collaboration with trending make-up brands and
bloggers focused on cosmetics only.( Collaborating with Rihana’s Fenty Makeup or Huda Beauty)

THREATS
- Replication of products and fakes in the market.
- Drop in purchase due to new American identity- loss of Italian heritage.
- Capri Holdings is a fairly young conglomerate who recently acquired Jimmy Choo, thus lack of Ca-
pri’s ability to sustain high business costs of Versace beyond a point.
- geopolitical tension can affect people’s spending capacity.
- Competition from websites like Vestiaire Collective selling second hand luxury goods.

(See Appendix 4: SWOT analysis)

30 31
 RECOMMENDED TARGET MARKET

The current Versace consumer target could use some tweaking. While Versace is successfully
catering to high-end buyers and lovers of luxury. A strong focus on certain type of millenial
groups could be very beneficial and nicely distinguish the targets of Atelier Versace and Ver-
sus. Thus there are sugestions of a strong focus on “KIPPERS (‘Kids In Parents’ Pockets Erod-
MARKETING & COMMUNICATION ing Retirement Savings)” as well as focussing on newly turned millenials as well who are value
based shoppers, which would mean focussing on a entirely new market segment such as
STRATEGY those millenials who would like to rent luxury and normally go to platforms that offer second
hand or previously owned luxury goods or for that matter even consider the outlet malls like
“ Fox Town” in Milan or “ La Vallee Village” in Paris. These are the young millenials who have
earned thier way to a priveledged life and are thoughtful consumers in terms of environment
conservation as well. Attacking this segment will definitely put Versace in a different league
and bring it first mover advantage towards the idea of sustainable luxury.

32 33
KIPPERS KMIB
KIPPERS ('Kids In Parents' Pockets Eroding
Retirement Savings) – these are children from
rather wealthy families, that are students or
finished studies, however are still living with
parents and do not work full time as they have
financial support from thier parents. (Invet-
opedia, no date). This target group doesnt
necessarily co-incide with the designs of
Versace which are slightly older but the influ-
ence of social trends can make them the next
ideal focus for Versace. These are not Versus
clients, maybe in terms of age but they dont
save money on items to prove that they are a
part of the ‘hip’ social circle would purchase
them. These are people doing internships
in creative fields or working as small to large
scale fashion bloggers or models and can
be labelled as “young adapters” of fashion.
They are also the kind of circle that would
work with having the right contacts in the
right places and can be found also at the best
nightclubs which have a slightly older crowd
but are super chic and fashionable. They want
to post thier outfits and can attract attention
really soon with thier strategy to mix high-
street with something more classic and can
be aged between 21-27 years old.

KMIB ('Kid Made it Big) - These are again a young set of people who were not born into luxu-
ry, but with thier own hardwork and dedication tried to make a million. This consists of people
primarily in the 20- 30 age group. These are self-made millennials. With the access of social
media to one and all and portals like Youtube, this target audience is either conscious or
extremely extravagant and want to indulge completely with the new found money. They travel
first class in flights because they ‘can’. Today becoming popular is not as hard as it used to
be and with just an idea people are able to shape today’s trends. This target audience comes
from all sectors of society and given Versace’s heritage would definitely
consider indulging themselves with these products or are sensible enough to have thier
agents rent it out and return thus getting into rentals to millenials is also another alternative
for Versace. This taget includes youtubers, singers, musicians, tech entrepreneurs, start-up
gurus, established fashion and lifestyle bloggers, recently acclaimed photographers and dj’s.

34 35
MARKET TRENDS PERSONALIZATION

Today value-based products have become extemely

41%
Consumers want
essential for many millenials.More consumers want to
in-shop shopping
To best identify what the coming year’s trends would change for Versace, a complete market re-
have niche SKU’S that they cant find so easily. Brands
search was conducted. To do so 2018’s social trends were considered and it was affirmed that like
need to constantly indulge in story telling, exclusivi-
2018, the coming year would also be an unstable year for fashion due to the shift in global econ-
omy. However there were certain trends that can be forwaded to the coming year to continue
ty and high quality. Consumes want to distinguish experience.
themselves and have thier own idetity in this age of
boosting brand positioning and image. Key takeaways from 2018 are:-
social media for originality and purpose. Personal-
ization is expected on all forefronts from the devel-

10% 75%
opments of products to end-user experience. In such
ONLINE
a situation, data analytics plays a key role in order
to provide the most personalised experience to
A growing trend can be observed from 2017-2020 in the the customer (BOF and McKinsey& Company, 2017)
online sales of apparel and footwear with 10% CAGR. Now
consumer purchases are more digital oriented not just
during the purchase phase but pre-purchase also as strong online sales CAGR Millennials prefer casu-
research as per thier own needs is happening and deci-
of apparel and
CASUALIZATION alwear to formal wear
sion making process is shifting from a linear to more com-
plex form using various different channels. Review from footwear Sportswear and athleisure are at the peek amongst

3.0x
peers, marketing through influencers and social media have the trends. Casual wear seems to be dominat-
become almost instrumental in shaping these decisions. ing even in entry to luxury sectors.The luxury sec-

60%
tor is not able to completely adpat to this due to
Brands are having to pick up on omni-channel and mobile the increasing costs.and are faced with steep price
as the industry is becoming more customer-centric.Another points over these last few years (EYGM limited ,2017)
essential thing for brands has become collaborations with Luxury prices increase
consumers are in-
mamoth online retailers. On the other hand, brick and motar
stores are losing thier importance and consumers visiting from 2010-2016
them is considerably decreasing, which is generating a n im- fluenced by digital MIX AND MATCH

perative move for exceptional in-store customer experience
in terms of hospitality and after sales service as well for them
to remain competitive (BOF and McKinsey& Company, 2017).
62%
marketing. .Millenials are born into the digital age where there is so
much information readily available on the internet and
price sensitivity which makes them less brand loyal
(BOF and McKinsey& Company, 2017). They are more

Millennials want to mix

value centric and less outfit centric and most of them
START-UP CULTURE- INNOVATION

9 out of 10
choose to mix up labels from different levels of the

As things are quickly escalating nowdays, being updat-

fashion hierarchy ( 62%). Infact 41% of luxury customers
now choose to purchase premium and fast
and match items from
ed in the fashion industry is extremely necessary. Collabo- fashion products (EYGM Limited, 2017). luxury and premium
rations with different industries, focus on marketing both
online and offline, constantly changing scenarios and ad-
consumers trust in-
aptation of those is key. An open approach is required fluencers more than MOVE ON
which is adopted by start-ups, which is eventually push-
ing labels in general to align themselves with this mindset ads and celebrity In this age of experiences and fast changing sce-
in order to be a part of the game by delivering fresh tal-
ents, partnerships and thier own voice in a unique way
endorsements. narios another popular trend amongst millenials is
to use a product and move on. They dont want to
(BOF and McKinsey& Company, 2017). necesarily hold thier purchases and are want to re-
gain thier investment atleast to a certain amount,
thats why the pre-owned industry has evolved.
36 37
4P's PLAN
PRODUCT
-Ready to wear should be at the core definitely.
-Focus on casualwear can be key, especially the
ath-leisure trend but it should be innovative
enough to sell it at luxury price points, hence col-
laborations with trending brands could be benefi-
cial.
-Makeup collaborations could be interesting and
innovative again with Millenial makeup brands and
possibly target markets which have stronger hold
to begin with such as asian market- China, India
(appendix 5).
- Continue to push the accessories sector espeical-
ly bags and shoes as they are supremely profitable.
- Launching a few limited edition bags and other
accessories, or T-shirts which could be fast sell-
ers would be interesting according to fast paced
trends.
- reusing the gold and medusa in a more playful
way, making luxury an everyday phenomenal.
PLACE
- The current store is very operational despite
slightly miscommunicated ways. It could use better
visual merchandising to attract in-store consumers
towards a wide range of products.
-play on ‘ hard -to-get’ products concept making it
necessary to visit the store and generating hype of
the brand at all times.
-omni-channel integration across channels.
- open a retail store just for rentals as well for
certain high-end buyers, some millenials only and
brand loyalists at relatively premium pricing.
- have a section on the brands website for these
rentals, with constant information of new products,
diverting traffic from other rental and second hand
portals back to Versace.
PRICE
- The current price points are very effective and
work well with the brand’s identity and position-
ing.
- To be more competitive with biger players like
Louis Vuitton and Gucci ( check competitive map-
pig), few pieces with exaggerated price points and
premium finishing such as bags or even leather
jackets with details in real gold could add value
for the millennials hungry for luxury bigger than
luxury.
- At the same time introducing a few tshirts and
small accessories made in collaborations with
streetwear brands could have completely unique
price points, for the millennials that seek to move
on shortly from the products.
PROMOTION
-Emphasize on heritage
- Keep the buzz up by constantly creating hype
through different channels.
- Use celebrities to showcase fast paced products.
- Connect with and publisize more icons that
promote the vision of Versace and are influencing
in different sectors not just fashion.
- Having events like pop-ups with young street-
wear brands for eg. Off-white showing Italian
lineage and mixing the then and now, will connect
well with Millenial ideology of mix and match.
- focus on social media strongly and engage peo-
ple through collaborations not just with fashion
labels but with tech, food, travel etc to attract a
wider audience.
- Focus on trends in particular and constantly
evolve in terms of environment sustainablity, push
Versace’s consciousness by emphasizing non-fur
brand identity.
- Pushing Versace Spa and introudcing Palazzo
Versace in different locations of the world as well.
39
DISTRIBUTION STRATEGY DISTRIBUTION STRATEGY - COLLABORATION STREETWEAR

Online selling is extremely crucial for all brands today. Versace has already established a good online presence
on social media and is being sold exclusively on thier website along with portals like -

-Farfetch
- 24 Sevres
-Luisa Via Roma
-Matchesfashion
- Ssense
- Yoox
- Moda Operandi
- Bergdof Goodman
- Opening Ceremony
-ShopBop
-Polyvore
-Harvey Nichols
- Selfridges
-Tsum
- Net-a-porter

Along with these portals Versace already has 200 stores worldwide and is sold in several multibrand
stores as well.This is a really good range to maintain. Capri Holdings has projected to increase
Versace’s stores to 300. Despite its Italian heritage Versace has more stores in China (13) verses
Italy. Thus opening atleast 7 more stores in China, and developing countries like India, Thailand
and other middle east countries like Oman, Morrocco could prove beneficial. Versace products are
also sold via private distributers. Amongst the new 100 stores to be launched, Versace should open
atleast 20 for Rental services only named “ Versace by the Hour “ for more conscious millenials.

OFF-WHITE c/o VERSACE

40 41
 OFF-WHITE c/o VERSACE

The Off-White x Versace Collaboration could be really innovative for Versace. Off-white as a label has really
driven itself to success from very streetstyle collaborations and has now found itself a seat at the entry-to-luxu-
ry table. This collaboration can have a small pop-up and can be exclusively sold on Versace.com and Off-white.
com.

Off-white recently collaborated for a shoes collection with Jimmy-Choo which is also now a part of the same
parent brand Capri Holdings. The involvement of Capri-Holdings in negotiations and outreach to Off-white
would definitely pay off.

A good product mix of Apparel and few accessories that are key to both Versace and Off-white would prove
beneficial. They could organise a short pop-up at an exclusive event in Milan which is home to both the labels
at the Palazzo Versace. The event could start-off privately with a fashion show using Versace’s celebrity outreach
and top-notch models like Gigi Hadid, Kaia Gerber amongst others. After the event, there can an exclusive
performance by Virgil Abloah ( DJ) and have an after party with models, celebrities, top notch clients amongst
the invitees.The pop-up store can function next day for the public where the collection can be sold at Off-White
outlets across Milan, Paris, London and NewYork and Moscow at only one and not more stores for a period of
1 season.

The promotional strategies deployed for this can be similar to Versace’s ex collaboration with H&M which was
sold out completely on the 1st day. Before the launch of the pop-up , campaigns can be shot featuring Donatel-
la Versace and Virgil Abloah. Some key influencers constantly promoting Versace and Off-White can also be
used to endorse the collection on Instagram before hand. Approaching certain fashion media to generate hype
and buzz could also be a good strategy. These influencers can be extremely top notch and preferably from dif-
ferent countries across the globe, creating awareness worldwide.

Key products could include some bags, belts, tshirts & sweatshirts, dresses, shoes, leather jackets, jewellery,
pants, skirts, bodysuits and blazer co-ords.

Campaign Example
Off-white c/o Versace

42 43
CONCLUSION & RATIONALE
Versace has been a successful brand since the death of its founder Gianni
Versace after being led by Donatella. The brand was facing some financial
difficulties and was purchased by Capri Holdings. While this acquisiton
brings severe skepticism from Versace loyalists in terms of its luxury value. The
additional cashflow does show some promise. Pushing marketing and com-
munication through story telling and right curation of social media can defi-
nitely boost sales. A developed target market and readily applicable growth
strategies such as the platform for rentals to millennials, collaborations with
streetwear and ath-leisure brands followed by collaborations and ventures
into the beauty line can make Versace more competitive. Redefining design
and innovation and underlining the core Values through different methods is
the best communication strategy for Versace currently.
44
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sace-way/
tage-versace-silk-pillows-distinguished-scarf-print/id-f_808462/
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https://www.reddit.com/r/streetwear/comments/7um935/offwhite_phone_wallpaper_msg_me_if_you_want_any/?utm_
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source=ifttt
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natelloVersace

46 47
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(1960–1970). Enterprise and Society, 11, 3, 524-559.

48 49
APPENDICE 1 : BRAND IDENTITY After the death of Gianni Versace, where he was murdered infront of his Miami mansion due to the
obsessions of a crazy fan, his siblings Donatella and Santo took over the brand. Donatella continues
to lead the position of creative director even today but back in the day she was the creative head
The brand DNA for Versace is its logo. The logo is inspired by the monster, Mendusa, which sym- followed by her brother Santo who took over as CEO. Versace continued to be a successful label
bolizes beauty, strength and power. Unlike the Mendusa, the company’s logo has replaced the until the 2000’s but then the new century brought many changes to the fashion world and Versace’s
snakes with flowing hair. It shows that the company strategizes on becoming the powerful and profits began to decline. Despite the managerial and financial hits Versace faced in the 2000’s, the
competitive business company across the globe. Versace was established by Gianni Versace in brand has sustained itself as a luxury label and has been involved in several different ventures to
1978, where he launched the first boutique at Milan’s Via dela Spiga. raise revenues under the Versace name such as building luxury hotels across the world, working with
Lamborghini to produce a Versace branded Lamborghini car, working with AgustaWestland to pro-
Gianni Versace initially led the brand in every aspect from design to production to finance to mar- duce a Versace branded helicopter. (Logomyway, 2018).
keting by selling only designer apparel. But eventually he realised a space in the market for lux-
ury accessories as well and with his eye for creative design Versace gained a lot of success. This
success eventually led to another key feature developing for the brand which was Gianni’s unique
contact to the music fraternity of the time. He was well connected with Elton John, Cher,Eric Clap- ‘’I think it’s the responsi-
ton, Naomi Campbell, Madona and players from the Duran Duran as well. His associations with
these celebrities got him a seat at award functions, photo shoots and other important events where
bility of a designer to try
his clothes started gainning attention. Suddenly everyone wanted the dress Cher or Madonna were to break rules and
wearing and Versace became a brand associated with celebrities, gaining a premium position.
These music connections also influenced the design DNA of the brand, as till date the brand is barriers, I’m a
known to have a very Rock & Roll outlook. little like Marco Polo,
His designs always had a breath of fresh air as he mixed a lot of different styles.He changed con- going around and mixing
teporary fashion by adding rock, art, sexuality and excessive color which remain at the core of the
brand even today. ‘Ingrid Sischy’ a dear friend of the designer and editor of the Interview Magazine cultures.’’
labelled his legacy of being ‘’a rare, particularly in our age, synthesis of craft, classicism and the
pop culture.’’(The NewYork Times,1997). According to this same report, Versace said “When you
- Gianni Versace
are born in a place such as Calabria and there is beauty all around a Roman bath, a Greek remain,
you cannot help but be influenced by the classical past,’’. Those themes, The Italian Baroque, Gre-
cian motifs and Estruscan symbols, definitely led to the rise of the logo which he took two years to
unveil to the public eye.

Versace’s vision for his collections were themes that are relevant even today and have shaped the
identity of the brand such as -celebrity, rock, pop art, metal, plastic, even bondage, with notorious
dresses he completed with straps of leather. A lot of people saw Versace as a vulgar designer as
he translated the garrish prints and Baroque Italian motifs into ‘flashy clothes’ and his girls were
labelled “ show girls “. Today these prints and motifs still hold symbolism to the Versace aesthetic
and are the foundation of the brand.

Versace’s personal values like his core friendships with celebrties and family values are also evident
in the structure today. While owned by Capri Holdings, the internal dynamics are still led by the
Versace clan. These values of family and friendship continue to be integrated within the brand
identity as well. Versace’s passion for life, beauty and living are carried into the sentimental aes-
thetics of the brand. He once mentioned to Anna Wintour that he wanted to build this legacy for
his children, his nieces and nephews. Despite Versace’s financial up and downs and positioning in
the market, Italian heritage and the Versace brand name will contiue to hold strong value until the
end of time which is what true legacy is about. To establish that in fashion where change is the only
language spoken shows the work of a true genius.

50 51
APPENDICE 2 : PESTEL ANALYSIS
Emmanuel Macron’s presidential election in
France shows some promise on the business
front. Since Versace operates from France
this is indeed imprtant. Macron is believed to
bring innovation, improve systems and improve
the overall economy conditions for France.
He has claimed to decrease the corporate tax
from 33% to 25% in the next 5 years, which is
an objective still to be achieved ( The Econ-
omist,2017). The scal policies that are imple-
mented in France are aligned to creation of job
opportunities and reducing the level of unem-
ployment in the region, and this can bene t
Versace as it will be encouraged to invest in the
region (Export.gov, 2018).
France is one of Europe’s biggest markets
with a population of 65 Million( Internet World
Stats,2017). It is the second largest spender
globally on luxury ( Roberts, 2017) and thus
proves to be extremely beneficial to the growth
of the fashion sector. A large chunk of this pop-
ulation is active on social media and internet,
which sets the base for good opportunities in
online businesses and e-commerce. Despite
the growth of online shopping, retail is still very
important. According to the Total Retail Survey ,
most sales happen via stores (79%)and website
(73%)( PWC,2017)
France’s urban population
projected to grow by 10% in
the next 15 years
APPENDICE 3 : COMPETITIVE MAPPING RATIONALE
France ranks 2nd in the line
for e-commerce markets in
Europe,which is contributed
largely by consumer’s trust
on the Internet as well as an
increasing number of busi-
nesses operating online.
(Vaast, 2017)
INDIRECT COMPETITORS
The same survey also shows that the use of mo-
bile phones for research as well as online buying
has rapidly been rising and consumers prefer to
utilise different devices. Today investments in
Omni-channel becomes imperative for business-
es to maintain competency.
The environmental policies that are implement-
ed by Versace are detailed and they are inter-
twined with the company’s promotional adver-
tising needs. It possesses effective corporate
social investment (CSI) platform that showcases
the commitment of the company in operational
excellence (Albrecht et al., 2013).
In conclusion, France provides many opportuni-
ties for businesses to flourish. There are positives
for the labor market, taxation system and digital
businesses to evolve as well. It remains uncer-
tain if Macron will be able to achieve his set-out
goals for France or not. If he does, the French
market will be become super competitive in the
European market as a whole.
52
Versace was one of the top players before the
DIRECT COMPETITORS 2000’s, today it’s position has changed a little. While
-ROBERTO CAVALLI it remains a strong competitor in t he luxury mar-
ket, its positioning from market rulers has reduced
-PHILIPP PLEIN to one of the lower end luxury competitors. The
-DOLCE & GABANNA new takeover by Capri Holdings is likely to change
- BALMAIN its positioning slightly more and thus Versace has
to fight harder to maintain its current positionning.
Currently ruling the market is another Italian her-
itage label which is Gucci. Gucci recently had its
management and Creative Head replaced. These
changes and strong financial support from the Ker-
ing Group has made Gucci a big success. Versace
should aim to attain this success with the new in-
-GUCCI vestment and deploy new strategies for innovation.
-LOUIS VUITTON Currently Dolce Gabanna and Roberto Cavalli are
the biggest competitors for Versace. Both Italian
-PRADA labels with a similar style in terms of the extrava-
gance and animal textures and bold prints prop-
agating the same values of Italian family. What
sets Versace apart is the affliation to celebrities
and its good-will across continents. Dolce Gaban-
na recently took a hit with China which is one of
the largest customer bases for many luxury brands.
This is a great opportunity for Versace to step in
and take some part of thier market share. Roberto
Cavalli has been a silent but strong luxury player
for a while. Versace’s celebrity presence can help
gain some of Cavalli’s market share as well. Thus
Versace has a window open to cater to both thier
market shares. Balmain is also strong competiton
for Versace as the style is definitely similar and in-
vestment for Balmain from middle east has pushed
Balmain very ahead in the race. Olivier Rousteing’s
creative direction and close proximity to celebrities
and the trending Kardashian clan has put Balmain
even ahead of Versace. Louis Vuitton and Prada are
indirect competitors as thier styles are very differ-
ent from Versace, but thier hold on the global mar-
kets and similar clientele makes them competitive
to Versace. Higher price points could be a break
for them as Versace can aim to attract some of thi-
er clientele with lower price points. Overall Ver-
sace’s place on the luxury map is looking positive.
53
APPENDICE 4 : SWOT ANALYSIS In 2015, Versace collaborated with the fast fashion giant H&M and produced a collaborative col-
lection which sold out on the first day itself. Given Capri Holdings takover and connections Ver-
sace can instead focus on collaborating with streetwear labels in the entry to luxury segment like
Off-white, Moncler, MSGM and a few others. These streetwear labels are extremely trendy now
One of the biggest strengths for Versace is the strong Italian heritage that the brand holds. De-
and are connecting well with the young millennials that Versace can target. These collaborations
spite its operations in France, the brand stands for stong Italian values like family. The brand
will bring a freshness to the label and make it more competitive with labels like Balmain and Dolce
established in the 80’s by Gianni Versace is a major global player of luxury today with expansion
Gabanna that are just slightly above in market share from Versace. Another opportunity that Ver-
on the horizon in all ways. From the 90’s until today, Versace has maintained a clear brand aes-
sace can tap into is making collaborative makeup lines with celebrities endorsing and promoting
thetic and stuck to its style of Rock & roll mixed with theatre, glamour and art. Endorsements by
makeup brands. Versace’s celebrity affliation can be widely used in this venture. Collaborating with
celebrities also create strength. Many individuals across the world look up to celebrities. When a
makeup brands like Rihanna’s Fenty or Kim Kardashian’s KKW Beauty or Kylie Cosmetics by launch-
celebrity endorses a product, his or her fan base would choose that specificc product over other
ing a premium and high-end makeup line could also add value and help in cross marketing for the
products. Another strength for the company is its expert team. Versace has over 500 stylists and
brand, attracting makeup enthusiasts and building relations with them. Versace recently swore off
designers who constantly work to create new products based on the current trends while also
‘Fur’ in a video that Donatella Versace released on social media (Vogue,2018). This is also a new
producing products that create a trend. The brand offers an omni-channel integration which is
door for Versace as it can show its consumers that being glamorous is not wrong but having strong
very beneficial to keep up with the changing needs of the current customers.
values and caring for the environment are equally important ideals for the Versace family.
Versace’s dipping profits, and self sustainancy eventually led to it being bought by Capri Holdings
Opportunities come with threats in the backwing. A major threat includes the rise of immitation
in 2018 ( Business of Fashion, 2018).Capri Holdings is an American conglomerate with brands like
bags. This has a wider outreach due to lower price points and can put Versace’s brand identity in
Michael Kors and Jimmy Choo under its family name. This is definitely a point of financial strength
jeopardy. The economic downturn and recession that was experienced across the world in uenced
for the brand but is a major weakness given that Versace always stood for its Italian heritage and
peoples’ purchasing power (Zorkóciová and Jamborová 2013). The purchasing power reduced signi
identity. This can potentially dilute Versace’s brand image. Also being placed alongside a brand
cantly as many decided to use money for their basic needs. This reduced the company’s consumer
like Michael Kors decreases Versace’s luxury image. There is already skepticism from Versace
base. Customer lifestyles constantly changing Infringement of intellectual property and Instability
brand loyalists if the brand will still communicate the same language or will it become another Mi-
in the global economy lie as underlying threats.
chael Kors which caters to a mass clientele. Another weakness for Versace is that while Donatella
still holds the creative reins to the company and is able to keep up with the trends in fashion, is it
Overall Versace’s current positioning has opportunties to regain some strength and few new ven-
too monotonous for the Versace consumer. Another big weakness is Versace’s social media which
tures and collaborations can help Versace gain a higher share of the market.
is frequently updated but the page under the Versace name is advertising for Versace home, Ver-
sace kidswear as well. This is confusing and overwhelming for the Versace viewership and could
definitely use some tweaking.

Weaknesses always leave room for Opportunities and Versace has a number of different oppor-
tunities to explore and grow the brand. Versace operates in France and the current French mar-
ket shows extreme promise to develop. France’s population is also expected to grow in the next
15 years( EYGM Limited, 2017 )giving rise to more buyers and a larger audience for Versace to
attract. While the takeover of Capri Holdings is looking like a weakness, it does show some pos-
itivity as well. The influx of capital can help Versace to reaffirm its positioning and invest more in
social media and digital marketing. These investments can also help Versace to launch an rentals
portal via omni-channel integration only initially with the website but eventually with atleast 20
stores amongst the newly promised 100 stores that Capri Holdings had projected( The Conversa-
tion, 2018). This rentals portal can attract conscious consumers and also capture a huge chunk of
the pre-owned luxury market which is just about taking shape with labels like Vestiaire Collective
in Paris. Versace can gain first mover advantage to this new outlook to luxury brands as consum-
ers nowdays are glued to technology and are choosing and valuing experience more than hoard-
ing a luxury product for a long time. The concept of ‘revolving wardrobes’ is slowly taking form.
Versace could possibly even rent out a few vintage pieces from thier archives and use those to
gain capital and maintain hype about the brand.

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