Michael Kors buying Versace for 2 billion dollars

[nick c]

https://money.cnn.com/2018/09/25/inv...ace/index.html

[szabo_martin]

Stunning that a company that essentially stole other designers styles, then had their garbage produced in China was able to have shops in all major high end retail locations.

[RW16610]

I read about this on Bloomberg the other day. Not sure how I feel about this really. I dislike these types of acquisitions, where higher end brands are taken over or made part of a conglomerate.

It ruined a lot for me in the auto industry and even the watch industry for some.

[dddrees]

Originally Posted by RW16610

I read about this on Bloomberg the other day. Not sure how I feel about this really. I dislike these types of acquisitions, where higher end brands are taken over or made part of a conglomerate.

It ruined a lot for me in the auto industry and even the watch industry for some.

Agreed and it's truly unfortunate when any great manufacture no matter what they make ends up falling victim to this sort of thing or any change which effects what and how they used to make things. If it's not a take over it's often a change in business practice because they feel they can't survive unless they do things differently.

Unfortunately it just seems that quality suffers and it gets harder to find any company which will make a good quality product.


For some things I have purchased vintage because you simply can't get it any other way. Thing is that's only possible for certain things and then you have to also understand this involves no warranty and you have to be concerned whether parts are available or not especially if it's something you wish to use vs just to collect and whether there would be anyone who might be able to work on it if need be. I think it's getting to the point you almost have to go the custom route get anything worth a darn.

[GB-man]

Seems like a lot of money for a brand that is seemingly irrelevant. I only see versace when I am at off saks as they have like 10,000 scarfs for sale there.

[pickettt]

Originally Posted by dddrees

Unfortunately it just seems that quality suffers and it gets harder to find any company which will make a good quality product.

+1. I don’t know how many of you are into tools, but I think the greatest travesty ever was Black and Deckers acquisition of Porter Cable. If you can’t beat ‘em, buy ‘em. It’s the new mantra when you don’t want to put in the effort of improving your own product or service.

[dddrees]

Originally Posted by pickettt

+1. I don’t know how many of you are into tools, but I think the greatest travesty ever was Black and Deckers acquisition of Porter Cable. If you can’t beat ‘em, but ‘em. It’s the new mantra when you don’t want to put in the effort of improving your own product or service.

Microsoft was extremely successful at doing this very thing.

[AK797]

I recently watched a documentary of Gianni's murder by a serial killer, was very moving and harrowing.

[Jazzie]

Interesting

[dddrees]

Originally Posted by GB-man

Seems like a lot of money for a brand that is seemingly irrelevant. I only see versace when I am at off saks as they have like 10,000 scarfs for sale there.

I really don't have any idea how relevant Versace is or not. It's really not a product that ever crossed my screen.


However I am really getting tired of seeing any and all of the little quality that is left become increasingly non-existent. Whether it's because of hostile takeovers, greed, or inability to keep up with mass production. The reason almost doesn't matter anymore as the bottom line is all that we're getting left with is cheap crap.

[pickettt]

Originally Posted by dddrees

Microsoft was extremely successful at doing this very thing.

Right...and unfortunately these smaller, more innovative companies’ ideas get quelled. There are so many great ideas that will never be realized because large companies took over smaller ones just to shelf their patents. Ain’t capitalism grand?

[dddrees]

Originally Posted by pickettt

Right...and unfortunately these smaller, more innovative companies’ ideas get quelled. There are so many great ideas that will never be realized because large companies took over smaller ones just to shelf their patents. Ain’t capitalism grand?

In some ways I think it is good. But increasingly I see more reasons it's not.

In Microsoft's case I'm actually glad we don't have more than the few computer operating systems we currently have. If we had more I could see this being a real pain for not only users, but techs, and even harder to conduct business as well.

[tudorbaja27]

It's all about becoming a conglomerate/holding company. They bought Jimmy Choo last year I think. Just hope the Kors ideas won't impact what Versace has been standing for for a lot of years now.

[tudorbaja27]

Originally Posted by pickettt

+1. I don’t know how many of you are into tools, but I think the greatest travesty ever was Black and Deckers acquisition of Porter Cable. If you can’t beat ‘em, buy ‘em. It’s the new mantra when you don’t want to put in the effort of improving your own product or service.

Kors was never competing with Versace, however. Completely different price tiers and clientele

[dddrees]

Originally Posted by tudorbaja27

It's all about becoming a conglomerate/holding company. They bought Jimmy Choo last year I think. Just hope the Kors ideas won't impact what Versace has been standing for for a lot of years now.

For way too many of these acquisitions it's all about how we can make the quickest and most profit to appease the stockholder. Stockholder is appeased and the product and the original customer suffers. They may very well find new and more customers but the product suffers. This one maybe be different but this is becoming more rare.

[tudorbaja27]

Originally Posted by dddrees

For way too many of these acquisitions it's all about how we can make the quickest and most profit to appease the stockholder. Stockholder is appeased and the product and the original customer suffers. They may very well find new and more customers but the product suffers. This one maybe be different but this is becoming more rare.

Agreed. A brand such as Versace is an icon - it would be more than sad for the product to start suffering. Here's hoping it won't change (much)

[enjoythemusic]

Wow, though understand the deal for them. Add in the fact Versace is 'hot' again... Makes sense to me for expansion. There are also some very strong / powerful influencers on Versace's side.

[GB-man]

Originally Posted by dddrees

I really don't have any idea how relevant Versace is or not. It's really not a product that ever crossed my screen.


However I am really getting tired of seeing any and all of the little quality that is left become increasingly non-existent. Whether it's because of hostile takeovers, greed, or inability to keep up with mass production. The reason almost doesn't matter anymore as the bottom line is all that we're getting left with is cheap crap.

As you know the only solution is to buy from smaller brands that are unknown to the general public. When a brand has significant value a big name is bound to step in and try to leverage it and create value.

So either buy from the handful of known brands that manage their business well or stay in the loop and buy from the boutique brands that still control everything and pass up the cache that comes with a major brand name.

[Wahlberg]

Originally Posted by pickettt

Right...and unfortunately these smaller, more innovative companies’ ideas get quelled. There are so many great ideas that will never be realized because large companies took over smaller ones just to shelf their patents. Ain’t capitalism grand?

I agree 100% with you.

But when a big company comes knocking on your door and offers 30-50-100-250-500-1 billion USD + a new position (CEO this or that) and salary, anyone is ready to sell. You just give it up. Take the money and start over again but in the mean time you set your family up for life, bought the house in Malibu, south of France, get the Patek and cars.

[pickettt]

Originally Posted by Wahlberg

I agree 100% with you.

But when a big company comes knocking on your door and offers 30-50-100-250-500-1 billion USD + a new position (CEO this or that) and salary, anyone is ready to sell. You just give it up. Take the money and start over again but in the mean time you set your family up for life, bought the house in Malibu, south of France, get the Patek and cars.

No doubt.

[R!$]

I probably wont be buying anymore Versace

Then again, I already have everything I ever wanted...

[City74]

Well I’m not a fan of either brand so....

[tudorbaja27]

Donatella is getting old.
So is Giorgio, Roberto etc...wonder what will happen to their companies?

[GB-man]

Originally Posted by tudorbaja27

Donatella is getting old.
So is Giorgio, Roberto etc...wonder what will happen to their companies?

You’re seeing it here. Buyouts from larger companies with more money and distribution.

[Fat_ninja]

People still wear versace?

[walds11]

Originally Posted by Fat_ninja

People still wear versace?

I know right

[brandrea]

Originally Posted by AK797

I recently watched a documentary of Gianni's murder by a serial killer, was very moving and harrowing.

I saw that too ... disturbing fellow that killer was.

[bayerische]

Don't like either of them so...

[nick c]

I was a fan of Versace in the 90’s, now not so much.

[tudorbaja27]

Originally Posted by Fat_ninja

People still wear versace?

In Boston, actually, people nowadays wear...well, I don't wanna get into it