Michael Kors could be facing a huge crash!
According to an article posted in the Finance section of Yahoo.com, American luxury label Michael Kors could be facing a huge drop in future sales. The article highlights the fact that Michael Kors watches and bags have reached a level of ubiquity- a big problem for aspiration mega-brands like Michael Kors. Widespread popularity is often the “kiss of death” for trendy fashion brands. Especially ones that position themselves as up-market luxury.
The article goes on to compare Michael Kors to Tommy Hilfiger in the late 90’s and further draws parallels to MK and Coach. If you’ve been following the Coach brand you may have heard that 70% of Coach’s revenue comes from their discount outlets – a BIG problem if your a luxury brand.
Luxury brands reach their most coveted levels when they are financially out of reach from the masses, the ability to see a brand everywhere and buy it everywhere poses a big problem if MK wants to remain a power house in the future. “Once a brand is declared as too accessible and overexposed by its loyal customers, no amount of fashion trickery will bring it back,”
Photo: Harpers Bazaar 2011