Who Will Replace Michael Kors As The New "Light Luxury" King?

Who will replace Michael Kors as a new round?

"King Michael Kors has created a fast developing" light luxury "myth. Despite the poor performance of the stock market this year, the company's market capitalization is still close to $15 billion, surpassing the long history of luxury brands such as Burberry, Tiffany and Coach.

Michael Kors last year's same store sales increased by 26.2% compared with the same period last year, net sales increased by 51% compared to the same period last year, up to 3 billion 170 million US dollars, and net profit increased by 66% compared to the same period last year, reaching 660 million US dollars.

So who can copy the successful example of the next Michael Kors has become a hot topic in the global fashion industry recently.

In the field of "light extravagance", a number of powerful brands in the US, such as Tory Burch, Marc Jacobs, Diane von Furstenberg, Kate Spade and so on, are all eager to win their success. Whether they can successfully combine the brand personality and profitability and step into the fast lane of growth, so that the value of the company can be greatly improved remains to be investigated.

The latest and latest report by WWD has made a clear comb on this topic: the achievement of Michael Kors myth is not accidental: the designer's personality charm, the wide influence of design style, and all kinds of thinkers, including Lawrence Stroll, Cao Qifeng, and CEO John Idol, who are keen on discerning pearls.

More than 10 years ago, Michael Kors was on the verge of bankruptcy. The White Knight Lawrence Stroll and Cao Qifeng appeared in time.

The long term development has planned the route, and has brought together the following winning elements: experienced and proactive Genius: Lawrence Stroll and Cao Qifeng played an important role in the success of the Tommy Hilfiger brand in the 90s of last century. Idol is a smart executive. She worked in Ralph Lauren, Donna Karan and so on.

Increase the mainstream serious exposure: Kors has established a reputation in the fashion industry for many years, and is rooted in the American fashion tradition. But the real opportunity to become famous and accepted by the public is the reality show "Project Runway".

Do high-end, unique fashion brands, but also to do in line with popular taste style.

Only by "democracy" can the brand be sold.

By increasing investment to support growth: the success of accurate timing IPO provides sufficient financial support for the company's extensive growth.

However, the road to success seems clear at a glance, but brand strategy is hard to replicate successfully.

Let's take a look at the recent development of several luxury brands that are catching up with others.

Tory Burch

Tory Burch

This week, Tory Burch became a media hotspot: it recruited a group of top talent and made Roger Farah, a former Ralph Lauren and Messi store executive, become joint CEO.

Farah has long been considered the driving force behind the growth of Ralph Lauren, which has grown from $1 billion to $7 billion 500 million in its 14 year term.

Marc Jacobs

Marc Jacobs

This

Last year, she left the Louis Vuitton for 16 years. With the help of LVMH group, she made every effort to build her own personal brand -LVMH holding 96% ownership of Marc Jacobs international holding company and 1/3 ownership of Marc Jacobs trademark.

Hana Ben Shabat, partner of A.T.Kearney consultancy, thinks Marc Jacobs will be the next Michael Kors, and the LVMH behind it will have substantial financial resources.

"Under the banner of LVMH, Marc Jacobs has done a good job."

"They are likely to successfully replicate the Michael Kors mode," she said.

Marc Jacobs has a good start because it has been widely publicized by LVMH.

"Marc Jacobs is capable of becoming the next Michael Kors," said CEO, chairman and CEO of Robert Burke Associates, a consultancy.

He has his own work and has international influence.

If he develops the right way, the sub line brand Marc by Marc Jacobs will hit a broader market.

Its brand licensing business has also been quite successful, including perfume, glasses and shoes.

Diane Von Furstenberg

Diane Von Furstenberg

"She has been very ambitious about accessories recently, and has improved her e-commerce business."

Ben Shabat said, "there is still much room for expansion in the US or overseas."

"She is preparing for further development. She may be very successful."

Burke said.

Kate Spade

Ike Boruchow, a consultant for Sterne, Agee & Leach, thinks Kate Spade has the potential to be as successful as Michael Kors.

Kate Spade

Kate Spade's parent company got rid of the dragged Lucky Brand and Juicy Couture. In the second quarter of this year, the same store sales of Kate Spade brand increased by 30.4% compared with the same period last year. It is one of the top retailers in the same store sales year-on-year growth.

The brand value of Kate Spade is US $more than 1 billion, and the US market share is about 5%.

The low gross margin of the brand is a headache.

Is there any possibility of duplication in the success of Michael Kors?

Simeon Siegel, an analyst at Nomura Securities, said: "people are looking forward to the next hot brand. Once a winner of a category (such as handbag) is found, investors will swarm."

"It is not easy to achieve such a close combination of product and designer character."

He said.

"Michael Kors promotes sales, John Idol drives gross margins, and they drive profits together.

The biggest challenge in light luxury is to find a balance between maintaining brand superiority and expanding sales channels.

This is very difficult. "

Allan Ellinger, senior management partner of MMG, an investment bank, said: "Michael Kors is really good and famous, but these achievements are not only his merits, but also investors.

"They have risks when they enter the market."

Ellinger said.

"When Michael Kors was launched, it encountered many frustrations, but they had the necessary funds and experience to adjust their business.

"You need money."

He said.

"If you want to have experience, you must have vision, you must have a strategy, you have to have a brilliant team.

Not only to build distribution channels, but also to build a global brand authorization mechanism.

The global expansion of Michael Kors business is the biggest hope for the brand in the future, especially in the US.

"Now it looks like Michael Kors is the next Michael Kors," said Paul Lejuez, an asset analyst at Wells Fargo securities.

"They are full of motivation.

The European market is their next business opportunity.

They should be more interested in international opportunities, rather than thinking about who will replace themselves or continue to appear in the United States.

However, Greater China business does not belong directly to Michae.