In a bold shift that reconfigures the global luxury fashion world, Prada has made a move, the Italian fashion house announced its acquisition of Versace in a cash deal valued at about USD 1.4 billion.
This is a big one for Prada, its largest transaction in the company’s history, and it brings one of the most recognizable names in fashion back into Italian hands. Earlier, Versace was under U.S.-based Capri Holdings for about seven years. Expected to close in 2025, the acquisition signals that Prada wants to be among the top players in the luxury game.
Challenges Shape a Lower Valuation
Capri Holdings, parent company of not just Versace but also Michael Kors and Jimmy Choo, originally picked up the Italian fashion house for about $2.1 billion in 2018. But a series of recent financial reports told a troubling tale: Although revenue for the luxe label rose 17 percent to $240 million in the year that ended last June, profits fell 44 percent, to just $27 million. Even the 17 percent jump in revenue wasn’t terrific when you consider that it was growing from a quite low base. The same reports warned of likely downturns in both revenue and profits, in part because of more downturns in the flashy luxury segment of the overall luxury market.
Leadership Changes Set the Stage
In the weeks leading up to the acquisition’s announcement, Donatella Versace left her position as creative director, a role she had held since 1997, when she took over after her brother, Gianni Versace, the brand’s founder, was killed. Dario Vitale, who has worked for the youth-oriented label Miu Miu, under Prada’s umbrella, is now leading the Versace brand. His appointment comes as part of a strategy to refresh Versace’s appeal among younger consumers. With this shift, Donatella takes on a more ambassadorial role. Miu Miu under Vitale has a shared vision with Miu Miu under Donatella.
Prada Eyes Global Expansion Despite Tariff Risks
The acquisition moves forward despite ongoing trade tensions that threaten the global luxury business. Rising tariffs on European goods, imposed by former U.S. President Donald Trump, made it tougher for companies like Capri to turn a profit on imported high-end goods. Those economic clouds haven’t fully cleared, but they didn’t stop Prada from acquiring the jewelry brand. To the contrary, it signals Prada’s solid long-term vision, one that’s about building not just a far-flung luxury portfolio but also a more competitive Prada in a market growing ever more consolidated.
Versace, a renowned international fashion design firm and a symbol of Italian luxury, was founded in Milan in 1978. Gianni Versace started with a clothing line dedicated to women’s wear. This line was characterized by the boldness that no other brand had dared to pursue. With a commitment to exquisite tailoring, ornate craftsmanship, and opulent materials, Versace truly represents the height of fashion and luxury.
Versace’s heritage is deeply rooted in its use of Medusa as a symbol, representing robust and fearless designs that captivate a modern, global audience. With Medusa’s mythological power to make people fall in love and never turn back, the brand continues to solidify its place in contemporary culture. By embracing Medusa, Versace has created a timeless legacy, inspiring generations with its bold, daring approach to fashion. This has been proven with its global revenue of approximately 1.1 billion US dollars in the fiscal year ending April 1st, 2023, as per reports from Statista.
During the 1980s and 1990s, the brand gained immense popularity by creating stunning outfits for some of the most prominent names in the American film industry. These included Lady Gaga, Elton John, and Jennifer Lopez.
Versace, a prominent brand in the retail industry, is renowned for embodying glamour and sophistication. Its appeal transcends age groups and lifestyles, capturing the essence of the “Carpe Diems” aged 18-30 who embrace dynamic trends regularly. Additionally, Versace designs pieces tailored for millennials, particularly women aged from their early 20s to their mid-40s. Beyond these demographics, the brand’s primary target market comprises urban high-end consumers, celebrities, influencers, and passionate fashion enthusiasts.
Versace Revenue From 2019 to 2023
Versace – Marketing Mix
The marketing mix of Versace refers to the 4Ps of Marketing- Product, Price, Place, and Promotion which encompasses the key elements that it uses to promote and sell products to its audience.
Product
Versace is a retailer of high-end goods and an exclusive collection as a whole. To preserve its entire brand image, the organization makes sure that unique styles and designs are provided. The product line includes articles for youngsters, adults, and men and women alike. It consists of high-end clothing, furnishings, accessories, and fragrances.
Price
Versace targets individuals with a taste for the finer things in life – those who appreciate innovation and luxury. It uses the premium pricing strategy, which means that the prices are set to be high from the point of initial release itself. This approach is justified by the exceptional quality and unique features offered, differentiating Versace from its competitors and reinforcing its commitment to delivering exclusive and premium experiences.
Place
Versace is a global brand that illuminates its presence in several countries. To effectively sustain its commercial footprint, Versace oversees sales operations through its dedicated retail, distribution, and sales departments.
The company has several tie-ups that help it sell and market its products via its outlets. Meticulously crafted, Versace’s physical stores mirror the brand’s aesthetic, creating a lavish atmosphere for shoppers. The brand also extends its reach through an official website, offering distribution and purchasing services in countries where dedicated outlets may not be present.
Promotion
Versace doesn’t miss a single detail when it comes to capturing the essence of luxury. From their striking Medusa logo to the custom-designed extravagant pieces reserved for celebrities, every bold choice leaves a memorable mark on its audience. Moreover, Versace leverages social media platforms like YouTube, Instagram, and Facebook to actively promote and enhance its image in the digital landscape.
In the highly competitive landscape of luxury fashion, Versace utilizes a diverse range of marketing strategies to uphold its iconic status and establish meaningful connections with its target audience.
Positioning and Brand Identity
Versace’s primary marketing approach is its consistent and cohesive brand identification. The company has concentrated on establishing itself as the epitome of elegance and excellence. This positioning stems from its commitment to producing exquisite products for the elite. Every detail of the Versace brand, from its logo to its product lines, exudes a sense of elegance and excellence that has become synonymous with the brand.
Revolutionary Collection
Pioneering in fashion, Versace has established its place as one of the globe’s most iconic brands. All of Gianni’s designs were inspired by his love of art and his desire to create fashion that was both beautiful and unique. These designs have been the brand’s hallmark since the very beginning and have maintained the core structure of bold, distinctive designs to make a statement. Continuing this legacy, Versace unveils new collections and limited-edition items, sparking desire among its audience. These collections are also presented in fashion shows, unveiling the groundbreaking talent and showcasing Versace’s ability to be a trendsetter.
Celebrity Connections
Versace has a long, splendid history of associating itself with iconic names like Lady Gaga, Beyonce, Madonna, and even the Princess of Wales. Even today, Versace continues to partner with contemporary celebrities and musicians like Dua Lipa, Gigi Hadid, and Justin Timberlake. It even collaborated with Cher to launch the “Cher X Versace For Pride” collection in 2022. These partnerships not only maintain the brand’s relevance but also amplify its appeal to the upcoming generations, ensuring that Versace remains synonymous with celebrity allure across eras.
Lady Gaga for Versace
Digital and Social Media Marketing
With the current world turning more digital at every step, Versace has also developed its social media marketing strategy to remain at the top of its game and continue to reach a vast audience.
First, let’s have a look at the official website of the brand. Versace’s website is a visually stunning showcase of the brand’s products, lifestyle, and history. It offers a wide range of pictures, videos, and articles that provide users with a comprehensive look into the brand.
The company has also established a notable presence on Instagram, with over 30 million followers and 5.3 million on X. Versace uses these platforms to present its most recent collections, as well as behind-the-scenes looks at the idea and creation process and celebrity partnerships.
In August of this year, Versace deleted all posts from its Instagram handle and declared that it will be releasing its fall collection on a new and fresh slate. Through its various social media tactics, Versace has managed to create a buzz and build a loyal fan base constantly.
A Screenshot from the Versace Website
Events and Sponsorships
Versace supports and takes part in several high-profile events, such as art exhibitions, film festivals, and award ceremonies. Its principal attractions are its fashion shows, which are renowned occasions on the fashion calendar. Exclusive events are also held by the brand to introduce new products or to mark the opening of a new flagship store in any global location.
Corporate Social Responsibility
Versace has incorporated sustainability into its key development strategies over the last ten years. They have improved their purchasing practices to be more ethical and ecologically conscious while also minimizing waste production, water use, and carbon footprint.
The brand has initiated campaigns to raise awareness and money for significant causes, worked on charitable initiatives, and supported several nonprofit organizations. By creating an overall favorable impact, this strategy has enabled them to connect with socially conscious customers.
Versace- Marketing Campaigns
The “Fendi x Versace” Campaign
The collaboration between Fendi and Versace became a highly anticipated and talked-about event. This partnership of the two most influential fashion giants created a collection that brilliantly showcased the dynamic fusion of Versace’s bold glamour and Fendi’s refined craftsmanship, resulting in an iconic and groundbreaking fashion collaboration.
The “Versus Versace” Campaign
In the “Versus Versace” campaign, there was a notable shift toward targeting a younger and more diverse audience. This strategic move involved featuring a fresh generation of models and influencers, effectively revitalizing the brand’s image. While embracing modernity, the campaign remained true to Versace’s fundamental values of daring design and individuality.
Versus Versace Fall Winter 2018 Advertising Campaign
Versace’s Super-Family Campaign
Versace’s Super-Family campaign placed a spotlight on the tight-knit community established by Gianni Versace around his brand. This campaign not only featured iconic 90’s supermodels such as Cindy Crawford, Naomi Campbell, and Claudia Schiffer but also introduced emerging talents like Kaia Gerber and Gigi Hadid, alongside Donatella Versace’s influential presence. The campaign celebrated a multigenerational representation of the Versace legacy, showcasing continuity and evolution within the brand’s storied history.
Conclusion
Versace’s brilliant marketing strategies have propelled it to the forefront of elegance in the fashion industry. With its zeal for constant innovation, it has established a permanent position despite the existence of dynamic trends. Versace’s journey over the past four decades highlights its commitment to its roots while also evolving to stay relevant in the current generation.
FAQs
When was Versace founded?
Versace, a symbol of Italian luxury, was founded in Milan in 1978. Gianni Versace started with a clothing line dedicated to women’s wear.
What is the pricing strategy of Versace?
Versace targets individuals who appreciate innovation and luxury. It uses the premium pricing strategy, which means that the prices are set to be high from the point of initial release itself.
What is the target audience of Versace?
Versace targets customers aged 18-30 who embrace dynamic trends regularly. It designs pieces tailored for millennials, particularly women aged from their early 20s to their mid-40s. The brand’s primary target market also comprises urban high-end consumers, celebrities, influencers, and passionate fashion enthusiasts.
Karlie Kloss is an American model. At the age of 17, she was declared as one of the Top 30 models of the 2000s’ by Vogue. By 2019, She had appeared 40 times on the International Vogue cover.
Born on 3rd August 1992 in Chicago, USA, she started her modeling career at the age of 14, in 2006. Afterward, Kloss was associated with advertisements for Bally Shoe, Donna Karam, Rebecca Taylor, Pringle of Scotland, Uniqlo, Dior, Lord & Taylor, Victoria’s Secret Pink, Adidas, and many more. She has also represented world-famous designers including Calvin Klein, Karl Lagerfeld, Gucci, Givenchy, Louis Vuitton, Valentino, Versace, and a lot more in London, New York, Milan, Paris.
Karlie Kloss is a well-known entrepreneur and philanthropist. After being attracted by the world of program coding, she launched ‘Kode with Klossy’ in 2015 to empower girls in the field of coding and technology. From the content platforms altogether, She has around 18.2 million followers.
Being a successful model, Karlie Kloss was the choice for many international brands and designers. She endorses several brands.
In 2016, Swarovski announced Karlie Kloss as their brand ambassador. During the announcement, the Creative Director of Swarovski mentioned Karlie Kloss as a symbol of modernity, freshness, self-confidence, elegance, and spontaneity, everything they convey through their designs.
Swarovski is a luxury brand that was founded in 1895. The brand has a great collection of jewelry, accessories, and other decor items. They are mainly made of high-quality glass. Using the finest materials, production, cutting, and polishing to superior quality glass items, they are in high demand in the luxury market.
Karlie Kloss said that she is super excited to represent the great designs by the international brand.
In 2018, Estee Lauder announced Karli Kloss as their brand ambassador. She was selected as the global model of their brand. She is considered as an epitome of #EsteeLauder women and even she has always dreamt of being the brand ambassador for Estee Lauder since childhood. Altogether the dream of a child to be the model for an international makeup brand and the aim of the brand to select a supermodel for their brand came into reality through this endorsement.
The brand is a 75-year-old cosmetic brand. She seems to be so excited to be the brand ambassador of Estee Lauder as the topmost thing on her bucket list was to be the model for Estee Lauder. She also added, from the starting of her career, she has always thought of two things- to be the cover of American Vogue and Estee Lauder endorsement. She is one of the most successful women, who worked hard for everything she had once dreamt of.
Karlie Kloss was roped as the brand ambassador and Creative Consultant for the fashion brand “Express”. The brand has started a campaign called the “ExpressLife” campaign, through which famous personalities from different fields like the film industry, sports, fashion industry, etc. inspire others to achieve their goals.
Karlie Kloss was called an “Influential trailblazer” by the Express CEO and President, Mr. David Kornberg as she will introduce the dynamic and individual styles to the customers. Karlie Kloss reacted regarding the endorsement that she grew up wearing the products from Express and love the versatile look of each product.
The Adidas endorsement with Karlie Kloss is a collection of workout dresses. To motivate those people who love to explore nature. The collection is inspired by nature’s earthy tones and textures as well as motivating to go out. Adidas believes nature is the fuel for our energy, creativity, and strength.
Adidas x Karlie Kloss collection is specially made to keep everyone active and fit in all aspects. They give you the freedom in your journey with confidence. They have a huge collection of basic and other essentials for women to keep their energy high.
Karlie Kloss endorsed Brands – adidas
Versace
Karlie Kloss Brands- Versace | Karlie Kloss endorsed brands
Versace is a luxury brand with an exclusive collection of clothes. Their products are expensive and well-known for their quality. Starting with the production of cosmetics, they change their focus towards clothing. Now their products are in high demand in the luxurious fashion industry.
In 2015, Karlie Kloss was selected as the new face of Versace. She reacted to the new endorsement as pure Versace, remixed and revolutionized, along with the power of color, cut, and the Greek motif.
Dior is a luxury fashion brand, headquartered in France. Their wide range of products includes fragrances, that includes perfume for women as well as men, makeup products, and fashion clothing.
Karlie Kloss keeps good relation with the brand Dior, as her wedding gown was from Dior. It is said that it took 700 hours to make the gown. 400meters of lace and 300 meters of tulle were used in that wedding gown.
Karlie Kloss Brands- Calvin Klein | Karlie Kloss endorsed brands
Calvin Klein is a global fashion brand offering almost everything from watches to sneakers. They also have a great accessory collection. Thor products include Calvin Klein jeans, sport, home, golf, lifestyle brand, watches, and jewellery collections.
Karlie Kloss promotes women’s fashion in the Calvin Klein brand. After walking for the first time for Calvin Klein, her career witnessed a great spike. Around 64 shows were booked for the fashion week. Since then, she has walked for many top designers on an international level.
Carolin Herrera is one of the top designers around the world. High-profile sophisticated and elegant dresses are their signature. To make women confident, modern, and beautiful is what the Carolina Herrera brand focuses on. In 1980, the brand joined the International Best Dressed Hall of Fame. In 1981, their collections were showcased at New York’s exclusive club, which came out to be a great success. Gradually they stepped into the production of bridal dresses, fragrances, eyewear, customized cosmetics, etc.
In 2016, Carolina Herrera launched their “Good Girl Perfume” with audacious fragrance. By 2020 various iterations were performed in the perfume and tested its popularity around the globe. Karlie Kloss, being the face of this perfume, wants to celebrate every girl’s other side, feel stronger and embrace their weakness to strength.
FAQs
Who is Kalie Kloss?
Karlie Kloss is an American supermodel, entrepreneur and philanthropist. She has been 40-time Vogue cover girl.
What are the brands endorsed by Karlie Kloss?
List of Karlie Kloss Brands are:
Estee Lauder
Swarovski
Express
Adidas
Versace
Dior
Calvin Klein
Carolina Herrera
Is Karlie Kloss a coder?
Out of her passion and curiosity, she signed up for a coding bootcamp and learnt fundamentals of coding and explored technologies.
Many top fashion designers and labels often rely on A-list models as the brand ambassador because they can help the brand in influencing potential customers and get billion-dollar revenue. Kendall Jenner is an American model, socialite, and media personality that is in demand in the advertising world.
Kendall Jenner rose to fame because of her family-based reality TV show called Keeping up with The Kardashians. She then started modeling at age of 14 and by the next year, she walked the runways for New York, Milan, and Paris fashion weeks. Kendall has so far done multiple cover shoots for magazines such as American Cheerleader, Teen Prom, Looks, Raine, GenLux, Lovecat, Flavour Magazine, Vogue, Teen Vogue, LOVE, Harper Bazaar, Vanity Fair, V, Self Service Magazine, etc.
Kendall hails from a very popular family as her sisters Kylie Jenner, Kim Kardashian, Khloe Kardashian, Kourtney Kardashian and their mother Kris Jenner are all fashion moguls, businesswomen and celebrities in their own rights. According to Forbes, Kendall became the world’s highest-paid model in 2017.
So far the model has walked runways for brands like Sherri Hill, Forever 21, Marc Jacobs, Givenchy, Chanel, Donna Karan, Tommy Hilfiger, Fendi, Bottega Veneta, Pucci, Dolce & Gabbana, Balmain, Alexander Wang, Vera Wang, Michael Kors, Calvin Klein, H&M, Versace, Dior, Elle Saab, and many more. Another notable achievement of Kendall Jenner’s modeling career is that she walked the runway for Victoria’s Secret Fashion Shows over three times.
The net worth of Kendall Jenner is estimated to be over $45 million in 2021. Kendall was once called “The Instagirl” by Vogue as she has revolutionized social media modeling. She is known to over USD$608,000 for an Instagram post and over $300,000 for a tweet. Some of the brands endorsed by Kendall Jenner are Longchamp, Reserved, Stuart Weitzman, Adidas, Pepsi, Estee Lauder, Kylie Cosmetics, etc.
Reserved is a polish clothing store chain and a part of the LPP company which was started in 1989. The brand has had more than 1,700 stores in over 20 countries since being launched in 1999 by Marek Piechocki and Jerzy Lubianiec. The company has made many popular brands endorsing campaigns with celebrities like Kate Moss, Cindy Crawford, Adwoa Aboah, Jourdan Dunn, Jon Kortajarena, and Irina Shayk.
It was only in 2019 that Reserved signed Kendall Jenner as its brand endorser. The model was part of the multimedia AW19 campaign, which showcases her in a backdrop of an Italian villa playing dress-up with Reserved latest collection. The campaign was inspired by 1970s aesthetics it shows Kendall’s transformations into a mermaid. The commercial was shot using film and pays homage to European cinema.
Estee Lauder
Estee Lauder is a multinational conglomerate that makes products in the sectors of skincare, makeup, fragrance, hair care. The company has its headquarters in midtown Manhattan, New York City, and owns cosmetic companies like BECCA, Bobbi Brown, Clinique, Estee Lauder, La Mer, MAC Cosmetics, Smashbox, Too Faced, Tom Ford, etc.
As of 2018, the company ranked 258 in the list of Fortune 500 list of American corporations by revenue. Estee Lauder signed Kendall Jenner as its brand ambassador in 2015, since then the model has been featured in multiple Estee Lauder ad campaigns and created her own limited edition lipstick for the brand.
Commenting on why the company chose her, Jane Hertzmark Hudis, the Global Brand President of Estee Lauder said that, Kendall Jenner is an ultimate Instagirl and so the company is excited to leverage her image, voice, energy, and extraordinary social media power to introduce Estee Lauder to millions of customers around the world.
Pepsi is a global leader in the market of carbonated soft drinks and manufactured by the Beverage giant PepsiCo. The drink was first developed in 1893 by Caleb Bradham. PepsiCo has its headquarters based in Harrison, New York, and encompasses all aspects of the food, snack, and beverage market. The company is over 120 years old and its main subsidiaries under PepsiCo are brands like Pepsi, Tropicana, Quaker Oats, Frito Lays, Gatorade, etc.
PepsiCo sells its wide range of products in over 200 countries and has 23 snack and beverage brands that generate more than $1 billion in sales. In 2017, Pepsi made an ad campaign named Live for now – moments featuring Kendall Jenner. The ad campaign showed the model participating in a photoshoot and then joining with a protest march that is making its way down the street.
She is then seen approaching the police officer and offering him a can of Pepsi in order to defuse tensions. However, the ad clearly missed the mark as it was criticized stating that it co-opted protest movements for commercial gain. The company removed the ad within 48 hours of the public outcry and apologized to the audience and Kendall Jenner saying that they did not intend to make light of any serious issue.
Kylie Cosmetics
Kylie cosmetics is currently one of the biggest brands in the cosmetics industry. The company was founded by Kylie Jenner and her mother Kris Jenner in 2015. They initially started selling Kylie’s lip kit under the seed company, after the product became successful the brand was renamed Kylie cosmetics.
According to Forbes, the makeup company was estimated to be over $900 million in 2019. The same year Coty Inc. bought over 51% of the controlling stake in the company for $600 million. In 2020, Kylie Cosmetics collaborated with Kendall to create a limited collection called “Kendall By Kylie Cosmetics”.
Kendall is the last sister to collaborate with Kylie. The collection consisted of products such as Pressed Powder Palette, Kendall Lip Blush Kit, Lip Gloss, Kylight Stick, Bronzer Stick, Blush Stick and blotting powder with products starting at $35. The siblings expressed their excitement on Instagram and showcased their products to their fans, the collection was so successful that it sold out in 24 hours.
LongChamp is a leading luxury leather goods company with its headquarters based in Paris, France. The company was founded by Jean Cassegrain in 1948. It initially started out with small leather goods like wallets, passport covers and it wasn’t until 1971 that the company launched its first handbag.
Currently, LongChamp is a pioneer and the best luxury leather maker as it offers a wide range of products like leather and canvas handbags, luggage, shoes, travel items, fashion accessories, and even women’s clothing. LongChamp is now available in over 80 countries with 1,500 points of sales and 300 stores. The company signed Kendall Jenner as its brand ambassador for its Autumn/Winter 2017/2018 collection.
Kendall has appeared in its ad campaign where she can be seen showing off LongChamp’s garments, accessories, and leather goods. The campaign is said to be described as 21st-century Amazon by the brand. Sophie Delafontaine the creative Director of LongChamp said that Kendall is an independent, elegant, and free woman which is exactly what Longchamp stands for.
Stuart Weitzman
Stuart Weitzman is a high-end shoe company that was founded in 1986. The Spanish company has a history of over 35 years and is known for its craftsmanship and precisely engineered fit. Stuart Weitzman was sold to Coach, the luxury fashion house, for $574 million in 2015. The aim of the company is to inspire women around the world to shine with confidence with every step they take.
The brand signed Kendall Jenner as its brand ambassador in 2019, since then the model has been featured in its ad campaigns such as SW Boot Camp and the #SWWomen. In the #SWWomen campaign, she has been featured along with singer Willow Smith, Chinese actress, and singer Yang Mi, and model Jean Campbell. The four ladies showcase the new line of ‘nude’ shoes that cater to an array of skin tones which is designed to be a wardrobe staple.
Adidas
Adidas is a pioneer and one of the topmost multinational companies that is known for its shoes, clothing, and accessories. The company has its headquarters in Herzogenaurach, Germany, and is the second-largest sportswear manufacturer in the world after Nike. As of 2018, the company was listed at over €21.915 billion. The major competitors of Adidas are Nike, Puma and Under Armour.
Adidas was founded by Adolf Dassler in 1949 and currently has over 62,000 employees along with being available in 100 different countries. The brand signed Kendall Jenner as its endorser for the Adidas Originals Campaign in 2017. The company said that the model embodied the spirit of Adidas Originals as a creative force shaping the world today by challenging the status quo in her very own way.
Kendall might have started on as a celebrity at a very young age because of Keeping up with Kardashian but has worked her way through her modeling career on her own. Kendall is now one of the topmost influencers on social media as she has over 175 million followers on Instagram and 31.5 million followers on Twitter. Kendall Jenner is one of the most sought-after models for runways, magazine covers, and ad campaigns.
Frequently Asked Questions
Who is Kendall Jenner?
Kendall Jenner is an American model, socialite, and media personality that is in demand in the advertising world.
What is the net worth of Kendall Jenner?
The net worth of Kendall Jenner is estimated to be over $45 million in 2021.
What are the brands endorsed by Kendall Jenner?
Some of the brands endorsed by Kendall Jenner are Longchamp, Reserved, Stuart Weitzman, Adidas, Pepsi, Estee Lauder, Kylie Cosmetics, etc.
How much does Kendall Jenner charge for brand endorsements?
Kendall Jenner is known to over USD$608,000 for an Instagram post and over $300,000 for a tweet.
