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1、 REPORT TITLE the companys target customers are 25 to 54 years old, with annual income above $50,000. Kors further growth strategy includes targeting a younger, affluent demographic, often overlooked by luxury brands. Kors distribution channels include retail, wholesale and licensing. The company ha
2、d 237 retail stores in 2012, operated either directly, or through concessions, and grew its international wholesale presence by 31.7%. Annual growth in the number of Michael Kors stores over the next few years is expected to reach 25%. North America is Kors largest geographical market, generating 93
3、% of its retail and 89.3% of its wholesale business. The company is also pushing to build its presence internationally, mainly in Europe and Asia-Pacific, with revenues in Europe growing at 182.6% and sales in Japan increasing from $1m in 2011 to $10.2m in 2012. Kors advertising spending reached $31
4、.4m in 2012. The company has an innovative approach to marketing and is an example of omni-channel retail, incorporating social media across all communication channels. REPORT TITLE however, Michael Kors has enjoyed the fastest revenue growth, with compound annual growth rate of 42.9% in 2008-2012 p
5、eriod. Similarly, Michael Kors recorded the fastest net income growth amongst its peers, reaching a CAGR of 25.1%. REPORT TITLE establishing and maintaining favorable brand-name recognition, determining and maintaining product quality, maintaining key employees; maintaining and growing market share;
6、 developing quality and differentiated products that appeal to consumers; establishing and maintaining acceptable relationships with customers; pricing products appropriately; providing appropriate service and support to retailers; optimizing retail and supply chain capabilities; determining size an
7、d location of retail and department store selling space; and protecting intellectual property. REPORT TITLE MKO Stock Exchange New York; Berlin No. of Employees 1,645 SOURCE: M A R K E T L I N E The company is based in Tsim Sha Tsui, Hong Kong. It has 237 stores, operated either directly, or throug
8、h licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo and Hong Kong. The company was incorporated in the British Virgin Islands in 2002. Prior to July 2011, the Company was ow
9、ned 85% by SHL-Kors Limited, a BVI corporation, and 15% by Mr. Kors. SHL-Kors Limited was owned 100% by SHL Fashion Limited. Michael Kors Holdings Limited has wholly-owned 25 subsidiaries in the British Virgin Islands (1), the U.S. (6), Canada (1), Europe (13), Hong Kong (1), Brazil (1), Curacao (1)
10、 and Japan (1). REPORT TITLE and womenswear, including dresses, tops, jeans, pants, skirts, shorts and outerwear. The MICHAEL Michael Kors collection is intended to appeal to a younger demographic. As described by the company, this collection was introduced in 2004, when Kors “identified the opportu
11、nity to capitalize on the brand strength of the Michael Kors collection to meet the significant demand for accessible luxury goods.” Additionally, KORS Michael Kors accessible luxury collection was launched in 2004. It includes footwear and jeans and is considered to be the mid-tier line, between th
12、e primary collections. According to Kors annual report, it is not a significant part of the companys net sales. Kors collections prices range from $20 to $4,000 Retail prices of merchandise included in Kors collections vary significantly. Handbags and small leather goods from the Michael Kors collec
13、tion, retail from $500 to $6,000, footwear retails from $500 to $1,300 and womens apparel retails from $400 to $4,000. Table 8: The Michael Kors collection average prices ($) Collection Handbags womens footwear) and licensed products (watches, fragrances, and eyewear). Michael Kors had 237 retail st
14、ores in 2012, operated either directly, or through concessions. The company opened 71 new retail stores in 2012, as compared to 60 retail stores opened in 2011 and 30 in 2010. REPORT TITLE the 18- to 24-year-old demographic is now the highest awareness group.“ REPORT TITLE in Europe the brand receiv
15、ed a warm welcome from all the countries in the region, despite the fact that the European economy is weakening. “Among a specialty retail landscape that is desperate for growth, Michael Kors represents a highly compelling longer- term footage growth story,“ as commented by Brian Tunick, JPMorgan an
16、alyst. “The company is in the enviable position of being able to drive growth across all of its distribution channels and geographic regions for the foreseeable future.“ The company has been very successful penetrating new geographical markets and reaching new customers and is well positioned to con
17、tinue growing. Growth is expected to be driven by very selective discounting, increasing jewelry sales, and increasing brand awareness, especially in North America. Kors has successfully embraced the crossover between online and traditional sales presence. It has the ability to leverage all distribu
18、tion channels to grow its overall business and increase new customer acquisition. REPORT TITLE & REFERENCE CODE MLCS2011-000/Published 07/2011 MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 24 APPENDIX Definitions The global luxury goods market comprises retail sal
19、es of luxury items, including: leather goods, watches, shoes, jewelry, mens apparel, womens apparel, cosmetics and fragrances. Sources www.phx.corporate- www.media.corporate- apps/ growth.htm?p=full www.altagamma.it/img/sezione3/files/397_975_file.pdf plan.aspx?storyid=185036#.ULvR0
20、C8hWSo www.media.corporate- Further Reading Market Line: Prada Case Study: From Family-Owned Business to Global Luxury Goods Powerhouse Market Line: LOreal Luxury Brand Case Study: Serving the Post-Recessionary Affluent Market REPORT TITLE & REFERENCE CODE MLCS2011-000/Published 07/2011 MARKETLIN
21、E THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 25 Market Line: Burberry Case Study: Retail-led Strategy to Target High Net Worth Individuals in Asia Pacific REPORT TITLE & REFERENCE CODE MLCS2011-000/Published 07/2011 MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT
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