In this article, Jordan Valinsky discusses the possible purchase of the Versace brand by Michael Kors. This comes as a shock to many people because of how popular the Italian brand is.
Michael Kors is purchasing Versace for around $2 billion. This was surprising for some considering Versace is such an expensive brand. But when we think about it a little bit more, the market for Versace is smaller because of how expensive it is. Whole Foods, for example, has a larger market because it has items anyone can afford, but Versace sells a simple tube top, a “corset top” as they name it, for $775. I don’t know about you, but I definitely do not have $775 to spend on a top.
Why did Michael Kors decide to buy Versace? They snatched up one of the last independent standing Italian brands in order to try and build an empire that will rival major European brands. My other question is: Will the look of Versace change after Michael Kors buys it? Michael Kors has a more athletic look compared to Versace’s sexy look. But I hope they keep the names and not change the entire look of the brand.
9to5 Chic 
I’ve always known Versace was an expensive and well-known brand but I never realized how prominent they were! To me, it sounds as if Michael Kors is trying to take over the industry. I agree with you when you say that hopefully they keep a lot of things the same as they are now!
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I agreed whole-heartedly when you talked about the market for Versace. $2 billion sounds like a good buying price with Versace. The company markets to wealthy customers so the target market is narrow.
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