I Сompany description
Nature of the Organization
Michael Kors is an American brand created by Michael Kors, at the age of nineteen. The story begins with the development of a collection of clothes he sells to the famous boutique Lothar's in New York. He wins the recognition of the press specializing in fashion, which allows him to know and to introduce it in this very closed universe.
Encouraged by this initial success, the young man decided to start own label in 1981. That same year, the brand releases its first collection of women's sports clothing, a collection not quite sport, but rather chic and glitzy sports designed with luxurious fabrics and sells in sumptuous stores Bergdorf Goodman and Saks Fifth Avenue .
The brand is then welcomed with open arms by the jet-setters and the designer receives in 1999, the prestigious CFDA for the Designer of the Year for women's clothing. The following year, he began creating fragrances and released his first fragrance for women and opened the first store on Madison Avenue in New York.
History of the Company
1981: Creation of the brand, Michael Kors, and launch of the first womenswear collection at Bergdorf Goodman and Saks Fifth Avenue.
1997: Launch of the first men's collection
1999: The creator of the brand received the CFDA award for designer of the year in women's clothing.
2000: Launch of the first Michael Kors fragrance for women and opening of the first store in Madison Avenue in New York.
2001: Launch of the first line of accessories and perfume for men who carry the brand name.
2002: Launch of the men's collection.
2003 The creator of the brand, Michael Kors, receives the price of designer clothes men of the year by the CFDA.
2004: Launch of the Michael Kors collection in more than 350 stores across the country.
2005: Launch of the third fragrance, Island Michael Kors and opening a boutique at Landmark Commercial Centre in Hong Kong.
2006: The creator of the brand receives a FIFI Award for best bath and body collection and launch of the watch collection in France.
2008: opening of a boutique in Milan
2009: Launch of the perfume Very Hollywood by Michael Kors. And end of the collaboration with Schwartz & Benjamin. It is now Iris who will Collection, while Kors Michael Kors shoes will be developed internally.
Mission statement and objectives
Michael Kors is a brand of sportswear and ready-to-wear male and female. The brand extends its range to offer luxury accessories namely handbags, sunglasses, watches and shoes. The style of this shoe is inspired by its creator, a mixture of sport and chic, you find, for example, batwing sleeves, long dresses, refined cuts with sometimes delicately drawn lines on black fabrics or white or bright colors. As for shoes, they are generally Wedge.
In addition, the collection Michael by Michael Kors offers a luxury clientele of ready-to-wear woman and man, swimwear, sunglasses, handbags, leather goods, belts, shoes and watches. For fans of shoes, Kors by Michael Kors collection offers a line of platform shoes. Also in the shoes, the brand launched the shoes Babar the round toe and smooth leather with a heel of 8.5cm while covered in leather. The model is designed by the creator of the brand and made in Italy.
II Company products and markets
Major products
Encouraged by his success, Michael Kors decided to offer its "prestigious" Customer is pleased to be dressed from head to foot, launching in 2001, its first line of accessories. The same year, the fragrance for men was launched. In 2002, the brand's creator decides to approach the ready-to-wear men's always in style sobriety and delicacy, especially invigorated with the success of the men's collection launched in 1997. Even then, success is the appointment. In 2003, Michael Kors receives the price of designer menswear of the year by the CFDA.In 2004, Michael launched his collection MICHAEL by Michael Kors, sold in over 350 stores across the country. This collection includes a full range of clothing for women and men accessories that include handbags and leather goods and watches, swimwear, sunglasses and shoes. In 2005, the third fragrance is launched, named "Island" Michael Kors. The creator of the brand receives the following year, a FIFI Award for best bath and body collection and takes out his collection of watches in France. To expand internationally, Michael Kors launched a luxury watch line called M.Kors, aimed first jet-setter.
Major markets
In 2009, the brand released the Very Hollywood fragrance which is represented by supermodel Carmen Kass. Furthermore, Michael Kors, now fully integrated in the luxury industry, dresses lots of stars like Jennifer Lopez, Charlize Theron, Catherine Zeta-Jones, Pierce Brosnan, Sharon Stone, Madonna, Barbra Streisand, Gwyneth Paltrow, Anjelica Huston Kate Bosworth, Sigourney Weaver, Usher, Liv Tyler and Jessica Simpson.
As for fragrances, a first perfume for women was launched in 2000, the men's fate a year later. In 2005, the brand launched her third perfume Island Michael Kors and in 2009 the perfume Very Hollywood. The watches are primarily intended for jet-setters who appreciate selects and original products and want to stand out by opting to acquire unique items while staying in a sober and simple style. M.Kors of watches are available in French watchmaker Bijourama. Michael Kors decided to adopt since 2008, technology ENOVIA MatrixOne Apparel AcceleratorTM for Design & Development. This is a new high-performance solution that allows textile producers to manage a rapid and optimal orders and guarantee the smooth running of their relationships with their partners, including suppliers and distributors, in order to reach their customers the right items at the right times.
IV Company’s management
The creator does not hesitate to propose sandals or sunglasses in winter, making any abstraction of the concept of time. He describes his fall-winter 2007-2008 collection of "luxury sport".
Financial analyses
Michael Kors, the retailer clothes, women's products and accessories, announces its results for the first fiscal quarter. Profits are of $ 174.4 million ($ 0.87 per share), against $ 187.7 million ($ 0.91 per share) a year before. Revenues amounted to $ 986 million, up to 7.3%. Analysts on average expected a quarterly EPS of $ 0.75 on revenues of $ 944 million. In Q2, 2016 the group is an EPS of between $ 0.86 and 0.90. Revenues are meanwhile expected between 1.06 and 1.08 billion.
The main financial parameters may be seen in the chart below. We compared the key data in recent two years and the expectations of the company for 2016
V Industry and competitive analyses
Major competitors
During the campaign for the new fragrance Very Hollywood Michael Kors chose supermodel Carmen Kass, country in which it appears a couple on a red carpet, in order to evoke the jet set, the world of luxury and stars. Global luxury leader, especially champagne and cognac and leather goods, one of the world leaders in perfumes and cosmetics (Dior, Givenchy, Guerlain, Kenzo) and number three in the jewelery and watchmaking (Bulgari, Tag Heuer, Hublot and Dior);
The main competitor of the company is Coach Inc. However two other competitors are Ralph Laurent Corporation and Marc Jacobs. They have the similar target audience of customs and strategies. In these terms Coach for example seeks to expand its market to Asian countries, Ralph Laurent has old, more traditional customers and Marc Jacobs does not have enough stores and was accused in plagiarism.
VI Summary
Strong points
Strong competitive positions with strong brands (Louis Vuitton, the undisputed world leader in the growth and exceptional profitability, Dior, Givenchy and Guerlain);
Balanced distribution of activities between the fashion and leather goods, perfumes and cosmetics, watches and jewelry, distribution
Tight control of distribution channels with a global network of DFS, Miami Cruise, Sephora and Le Bon Marché;
Celebrity factor
Philantropy
Segmented brand
High quality goods
Weak points
Brand dilution
Jet set in a low economy
Michael as the face of brand and no successor to him
Brand is relevant mainly in the USA
Recommendations
We may conclude that the condition of the industry in general is unfavorable given the economic situation in the USA. Kors is now surpassing its main competitors. But the company should increase revenue, increase market share, introduce new products, increase brand awareness, maintain prices. To this end product innovation and formation of strategic alliances are necessary. The implementation of these issues shall ensure stable development and growth to Kors company.
