Answer the 3 questions And reply to 2 classmates. (3-5 sentences replies)
1.Why do you think this deal would make sense?
2.What will happen to a combination of Tapestry and Capri and all those high-end brands?
3.Do you like the American brands or the European brands? Why?
Classmate 1: Hello Dezarae
Overall, this was a well-planned, organized presentation. I really enjoyed the topic you chose for the current event as fashion brands in the industry are all taking action to merge together for many beneficial reasons. You did a great job explaining how and why Tapestry is taking action to buy all of these fashion brands and how this will benefit them. It is also interesting how this is one of the biggest deals made in the industry.
Why do you think this deal would make sense?
- Coach acquiring Michael Kors, Jimmy Choo, and Versace was a great business move. It expanded their brand portfolio and allowed them to tap into different customer segments. This $8.5 billion deal is a strategic decision that strengthens their position in the luxury fashion industry. Coach’s acquisition of Michael Kors, Jimmy Choo, and Versace was a game-changer. It expanded their offerings and solidified their presence in the luxury fashion market. With these iconic brands under their umbrella, Coach can cater to a wider range of customers and leverage their collective expertise to drive growth and innovation. It’s a power move that positions Coach as a major player in the industry.
What will happen to a combination of Tapestry and Capri and all of those high-end brands?
- Once Tapestry and Capri collaborate, it will create an exciting partnership in the luxury fashion industry. The collaboration will bring together the strengths and expertise of both companies, allowing them to expand their market reach, enhance brand offerings, and drive innovation. It’s a strategic move that holds great potential for growth and success in the industry. The potential opportunities for Tapestry and Capri are immense. By collaborating, they can tap into new markets, leverage their combined resources, and create synergies that drive innovation and growth. They can expand their product offerings, reach a wider customer base, and strengthen their position in the luxury fashion industry. This partnership opens doors for exciting collaborations, increased brand visibility, and enhanced competitiveness in the global market.
Do you like American brands or European brands? Why?
- I, personally, do not shop for clothes that often. But, as far as I know, I know Europe has a very trendy, fashionable style, whereas America can best be described as comfy, and well put-together. I like both brands so I do not have a clear answer.
- Classmate 2: Hello Dezarae! You did an excellent job on your presentation. I enjoyed your hearing your summary of the articles about how Coach Owner Strikes $8.5 Billion Deal for Parent of Michael Kors and Versace in order to create the new US luxury fashion empire. In addition, I can clearly tell how passionate you are about the fashion industry and having a powerpoint made it very easy to follow because it was very clear to understand. Additionally, I am glad to hear that more brands are collaborating / combining because they can leverage all of the strengths from each company in order to expand their customer base. Down below are my answers to your three discussion questions from your presentation.
Question #1: Why do you think this deal would make sense?
Personally, I believe that the partnership and merger between Tapestry, the owner of Coach, Kate Spade, and Stuart Weitzman, and Capri Holdings, which owns Michael Kors, Versace, and Jimmy Choo is a strategic move that will benefit all of the brands in the long run. In addition, it would enable the businesses to establish a more powerful position within the luxury fashion industry. Additionally, I know this deal will properly leverage the strengths and opportunities of each company and brand in order to truly address the weaknesses and threats of each company. For example, even though Tapestry and Capri are well known brands within the fashion industry they are still considered and viewed as the small players when compared to the European luxury powerhouses like LVMH and Kering. This partnership would allow the companies to combine their resources, knowledge, portfolios, and strong / established brand credibility which would ensure that they can compete more successfully on a worldwide level. Also, this deal has the potential to offer cost savings of about $200 million over the course of next three years. This merger could also help distribute resources more efficiently and strategically while investing more in brand development and expansion. Furthermore, the deal would provide diversification within the luxury fashion industry because while Capri’s brands are well known and have strong brand presence in high-end luxury, Tapestry’s brands are well known for how accessible they are within the luxury fashion industry. With the possibility of this deal this would create more diversification to help the companies be in a better situation to handle changes within the market and consumer preferences more efficiently. In conclusion, I believe that combining the companies and brands would potentially lead to massive growth and success within the fierce competitive luxury fashion industry. Also, we have seen over the years how a shift has occurred since luxury spending within the fashion industry has slowed down immensely within the United States, other countries in both Europe and Asia have seen tremendous growth. This is why I believe that id both companies and their brands combine their overall portfolios, Tapestry and Capri will be in a better position to growth and success within the competitive luxury fashion industry if they are able to change and adapt to the changing preferences of consumers.
Question #2: What will happen to a combination of Tapestry and Capri and all those high-end brands?
Personally, I believe that the combination of Tapestry and Capri and their high-end brands will result in partnership that is both diversified and powerful within the luxury fashion industry. For instance, after listening to your presentation and reading both articles, I learned that this merger has the potential to generate over $12 billion in annual sales and would benefit all parties because it will enhance the global presence of both companies and their brands since it would attract more customers and boost their position in the luxury fashion industry so that they can compete with the European luxury giants brands like LVMH and Kering. For example, Tapestry brands such as Coach and Kate Spade are well known for their affordable luxury items that cater and appeal to a wider range of consumers. On the other hand, Capri brands such as Versace and Jimmy Choo cater and appeal to consumers who seek high end luxury products. Furthermore, by utilizing and leveraging the variety and diversification each company and brand offers it will allow them to appeal to a larger range of luxury consumers in the market, since now they can attract customers who are looking for reasonably priced luxury items and customers who seek for rare, unique, and exclusive high end luxury items. In conclusion, I think we will see a merged company that will increase their overall operational efficiencies which will enhance profitability and will boost growth since the new company will focus and concreate heavily on expanding their global brand presence in both Europe and Asia while simultaneously.
Question #3: Do you like the American brands or the European brands? Why?
Personally, I prefer the European brands vs the American brands because the European brands are seen more as elegant, minimal, timeless classic, formal, old money, and sophisticated while American brands are seen more as informal, trendy, sporty, new money, and casual streetwear. Also, European brands are considered quiet luxury while American brands are considered loud luxury with obnoxious wild prints and patterns. Furthermore, European brands align more with my personal style and consumer preferences since they offer more quiet luxury items that are consider sophisticated, timeless, and elegant. Also, European brands items often last longer since their quality is better compared to American brands. In conclusion, American brands don’t usually resonant with my personal style / preferences because American brands scream look at me vs European brands that embody luxury that is discrete since they don’t rely on obnoxious and excessive logos and prints that are constantly used in American brands.