Versace, housed by Capri Holdings after the US$2.12 billion acquisition last year, will be opening 300 stores by 2022. During an investor day presentation, John Idol, CEO at Capri Holdings said after buying in Versace, the company aims to be consistent with its luxury competitors and increase its global retail footprint, with slightly more stores in the Asia region.
In addition, the company also will be banking heavily on enhancing the iconic brand’s marketing. According to Idol, more will be spent on marketing for Versace, from campaigns to how the brand can drive consumers to its site. Versace’s CEO Jonathan Akeroyd added during the presentation that the marketing team at Versace is restructuring its strategy.
“Marketing and advertising took an old school execution previously, driven by fashion shows, advertising campaigns and top photography talents,” he added. Versace will now be taking a 360 marketing approach, first with its fashion shows and campaigns, while pushing towards product placements and in-store executions by the end of 2019. This will see a new organisational approach to marketing, in a bid to align customer touch-points for brand moments and product pushes.
The growth initiatives for Versace also include capitalising on menswear and relaunching the men’s underwear business, while banking on signature house codes and logo each season for stronger brand value. Akeroyd highlighted that the brand will be elevating “brand codes” such as the Medusa and gold barocco prints that Versace is well-known for. The team at Versace aims to bring out the brand codes to create a contemporary look for all its products.
This comes following the company’s strategy to accelerate eCommerce and omni-channel development. Capri Holdings’ Idol said while the brand is “very far behind” in the eCommerce side of business, it aims to have a platform to leverage by next year. Capri Holdings also house Jimmy Choo and Michael Kors. Both brands will also be expanding and increasing retail footprints globally. Similarly to Versace’s initiatives, the other two luxury brands will be leveraging eCommerce and omni-channel development to ultimately reach US$8 billion revenue target.
Marketing has reached out to Versace for more information on its Asia and menswear initiatives.
News of the Versace’s acquisition sparked backlash from consumers last year, who have urged the brand not to sell to Michael Kors, now known as Capri Holdings. Comments were also left on Donatella Versace’s Instagram posts telling her not to sell the brand. Donatella Versace is currently the chief designer of Versace Group, and sister of its founder.
According to Capri Holdings, the name is inspired by the island in Italy’s Bay of Naples which is recognised as an iconic, glamorous and luxury destination. The island’s three rock formation, formed over 200 million years ago, symbolises the “timeless heritage and strong foundation” that is at the core of each of the three founder-led brands in Capri Holdings.