Bloomberg has said that Michael Kors, the American brand best known for its handbags and accessories for women, has placed a significant demand in the fashion business: it is worth more to open more stores? And they said no. After planning the opening of hundreds of stores in North America, Michael Kors has chosen to stop in order not to damage the image of exclusivity that a luxury brand must maintain for its regulars and potential customers.
Bloomberg writes that when the company went public in 2011, it began a widespread distribution of its stores in North America: four years and 200 stores later it decided to stop. John Idol, the managing director, said the company will still open a few stores on the continent and then the presence will be deemed sufficient.
The initial plan was to open 400 stores in America to compete with rival brand Coach (also an American manufacturer of bags and accessories for women), but an analysis of the commercial strategy has changed the company’s mind. the more you sell”: it is an approach that works in the case of fast food or low-priced chain stores, but Michael Kors does not fit into these categories.
Industry experts have always referred to the brand as an example of “affordable luxury”: it is less expensive than luxury brands, but more expensive than the brands that can be found in shopping centers, and for this type of company the perception of prestige is essential (in Italy the prices of a Michael Kors bag range from around € 125 to € 425). Having too many stores would make the brand too accessible, and that would be counterproductive: to get customers to spend that money on their products, Michael Kors and similar brands have to rely on their reputation and a less accessible image.