Versace is owned by Capri Holdings, which acquired it for Euro 1.83 billion (over $2 billion) in 2018. Versace is part of the group, which also owns Jimmy Choo and Michael Kors. Versace generated over a billion dollars in revenue in 2022. Capri Holdings is primarily owned by John D. Idol, chairman and CEO of Capri Holdings (formerly Michael Kors Holdings) and CEO of Michael Kors. Top institutional investors comprise FMR (Fidelity) with 14.95% ownership, The Vanguard Group (9.47%), BlackRock with 8.9% ownership, BlackRock with 8.9% ownership, and Senvest Management with 5.1% of ownership.
|Products and Services||Versace is an Italian luxury fashion brand known for its high-end clothing, accessories, fragrances, and home furnishings. The company offers a range of products, including haute couture, ready-to-wear fashion, shoes, handbags, jewelry, eyewear, and perfumes. Versace also operates boutique stores and online retail to sell its products.||Versace’s core offerings include luxury fashion and accessories, targeting a discerning and affluent customer base. The brand is known for its iconic Medusa logo and bold, glamorous designs. Boutique stores and online retail enhance accessibility for customers.||Versace clothing (e.g., dresses, suits), accessories (e.g., handbags, belts), fragrances (e.g., Versace Eros), home furnishings (e.g., Versace Home Collection), boutique stores, online retail.|
|Revenue Streams||Versace generates revenue primarily through the sale of luxury fashion products and accessories. Income also comes from fragrances and licensing agreements for the brand’s name and logo, as well as royalties from collaborations.||Revenue from luxury fashion product sales is a significant portion of income, driven by brand exclusivity. Fragrances contribute to diversified income streams. Licensing agreements and collaborations generate additional revenue.||Revenue from sales of luxury clothing and accessories, income from fragrance sales, licensing agreements for brand use (e.g., Versace Home), royalties from collaborations (e.g., Versace x H&M).|
|Customer Segments||Versace serves an affluent and fashion-conscious customer base that seeks high-quality luxury products. The brand appeals to individuals who appreciate bold and glamorous designs. Versace’s clientele includes celebrities and fashion enthusiasts.||Versace’s target demographic includes affluent consumers seeking exclusive luxury fashion and accessories. The brand’s bold and glamorous designs attract fashion-conscious individuals. Celebrity endorsements enhance brand appeal.||Affluent consumers seeking exclusive luxury fashion, fashion-conscious individuals valuing bold and glamorous designs, celebrities endorsing Versace products.|
|Distribution Channels||Versace distributes its products through a network of boutique stores worldwide, including flagship stores in major fashion capitals. The company also sells its products through authorized high-end retailers and online through its official website and e-commerce partners.||Boutique stores in fashion capitals provide exclusive shopping experiences. Authorized high-end retailers expand brand reach. E-commerce platforms cater to online shoppers.||Versace boutique stores (e.g., Milan, Paris, New York), authorized high-end retailers (e.g., department stores), online retail through the official website and e-commerce partners.|
|Key Partnerships||Versace collaborates with authorized high-end retailers to showcase and sell its products. The company may also have licensing partnerships with manufacturers for Versace-branded merchandise. Collaborations with celebrities and designers for special collections enhance brand visibility.||Collaborations with high-end retailers expand the brand’s physical presence. Licensing partnerships ensure availability of Versace-branded merchandise. Collaborations with celebrities and designers create buzz and attract customers.||Collaborations with authorized high-end retailers (e.g., Saks Fifth Avenue), licensing partnerships for branded merchandise (e.g., Versace Home Collection), collaborations with celebrities (e.g., Jennifer Lopez) and designers (e.g., Donatella Versace).|
|Key Resources||Versace’s key resources include its iconic brand name, fashion design expertise, manufacturing capabilities, boutique stores, online retail platform, marketing and advertising efforts, and a commitment to creating bold and glamorous fashion.||The Versace brand name signifies luxury and exclusivity. Expertise in fashion design ensures unique and glamorous collections. Manufacturing capabilities maintain product quality. Boutique stores provide a physical presence. Online retail expands accessibility. Marketing and advertising promote the brand’s bold style.||Versace brand recognition, fashion design teams, manufacturing facilities, boutique stores, online retail platform, marketing campaigns, commitment to bold and glamorous fashion.|
|Cost Structure||Versace incurs costs in fashion design and production, manufacturing of clothing and accessories, operating boutique stores, marketing and advertising campaigns, employee salaries (including designers and models), and maintaining the online retail platform.||Costs associated with fashion design and production are significant due to the emphasis on luxury and quality. Operating boutique stores in prestigious locations requires financial resources. Marketing and advertising campaigns promote the brand. Employee salaries, especially for designers and models, are substantial. Online retail platform maintenance is necessary for digital sales.||Costs related to fashion design and production of luxury items, operating and maintaining boutique stores, marketing and advertising expenses, employee salaries (including designers and models), maintenance of the online retail platform.|
|Competitive Advantage||Versace’s competitive advantage lies in its iconic brand name, bold and glamorous fashion designs, exclusivity, and high-quality luxury products. The brand targets an affluent and fashion-conscious audience. Versace’s celebrity endorsements and collaborations enhance brand visibility.||The Versace brand name is synonymous with luxury and glamour. Bold and unique fashion designs set it apart in the luxury fashion industry. Exclusivity appeals to affluent consumers. Celebrity endorsements and collaborations generate excitement and attract customers.||Versace’s iconic brand name, bold and glamorous fashion collections, exclusivity, celebrity endorsements by figures like Jennifer Lopez, collaborations with designers for unique collections.|
|Value Proposition||Versace provides customers with exclusive luxury fashion and accessories characterized by bold and glamorous designs. The brand offers high-quality, iconic products that appeal to affluent individuals seeking fashion-forward styles.||Versace’s value proposition centers on delivering exclusive luxury fashion and accessories. Bold and glamorous designs cater to fashion-conscious individuals. The brand’s high-quality products and iconic status provide a unique shopping experience.||Wearing exclusive Versace clothing and accessories, experiencing the bold and glamorous designs, owning high-quality luxury fashion pieces.|
Versace is an Italian luxury fashion company that was founded in 1978 by Gianni Versace and is headquartered in Milan. Versace is known for its bold, colorful designs and use of luxurious materials in its ready-to-wear and related accessories.
How did Versace come to be? Let’s delve into the details below.
Versace’s mother was a dressmaker and he spent many of his formative years as her apprentice. Over this period, he developed a passion for fashion and reportedly designed his first dress at the age of 9.
Versace moved to Milan in the early 1970s and worked as a freelance designer for various fashion houses such as Genny, Complice, Mario Valentino, and Callaghan. His work was praised by the industry and Versace had dreams of starting his own brand someday.
The first Versace store
This dream would be realized in 1978 after the first Versace boutique opened in Milan. The venture was funded by the Girombelli Italian fashion family, with Versace joined by his brother Santo (who served as CEO) and sister Donatella who was vice president and designer.
Versace quickly gained a reputation for his bold and innovative designs, and his collections were soon featured in prestigious fashion magazines and worn by celebrities.
Direction and expansion
Over the 80s and 90s, he built a fashion empire based on sensual ensembles that included PVC baby-doll dresses and silver-mesh togas, among numerous other iconic pieces. Versace was frequently criticized by those who believed his products to be vulgar, but he continued unfazed.
Versace also expanded into other products over this period such as accessories, furniture, and even branded fine China. But it was his connections in the music industry and an innovative marketing approach that catapulted the brand to success.
Versace was known to be friends with numerous music stars. When the likes of Elton John, Eric Clapton, Cher, and Madonna started wearing Versace products at award ceremonies and photo shoots, people took notice and wanted to wear the same.
While commonplace today, Versace understood the importance of celebrity brand endorsements and was one of the first to link the music industry with the fashion industry to market products.
In 1993, the famous Versace logo of the head of Medusa came into existence. Versace said he was inspired by the Greek ruins he used to play in as a child.
Versace passed away in tragic circumstances in 1997. At the time of his death, his work was colorful but much more refined than in his prime, and the company had further expanded into handbags, jewelry, perfume, household items, and clothing.
Sister Donatella became creative director while Santo became CEO. Allegra Versace, the daughter of Donatella, inherited a 50% stake in the company that she assumed control of on her 18th birthday in 2004.
Restructure and change of ownership
As profits started to dwindle in the 2000s, the company was restructured as Versace Group by then-CEO Fabio Massimo Cacciatori. However, Cacciatori and subsequent CEO Giancarlo di Risio resigned after disputes with the Versace family over the direction of the company.
The Blackstone Group purchased a 20% stake in Versace in 2014 for €210 million with the funds used to open new stores in emerging international markets.
Four years later, it was announced that 100% of all Versace family and Blackstone shares had been sold to Michael Kors Limited (now Capri Holdings Limited).
The acquisition formed a new global luxury fashion group consisting of Michael Kors, Jimmy Choo, and Versace. Donatella Versace is still involved with the company today and serves as its chief creative officer.
- Versace is an Italian luxury fashion company that was founded in 1978 by Gianni Versace and headquartered in Milan. Versace is known for its bold, colorful designs and use of luxurious materials in its ready-to-wear and related accessories.
- Versace was one of the only fashion designers of the time to control every aspect of their brand. Over the 80s and 90s, he build a fashion empire based on sensual ensembles that included PVC baby-doll dresses and silver-mesh togas. He also used his connections in the music industry to promote the brand.
- Versace passed away in 1997 and as profits started to dwindle in the 2000s, it was restructured as Versace Group. In 2018, it was announced that 100% of all Versace family and Blackstone shares had been sold to Michael Kors Limited (now Capri Holdings Limited) to form a new global luxury fashion group.
- Versace Ownership and Acquisition:
- Capri Holdings Acquisition: Capri Holdings acquired Versace for over $2 billion in 2018. Capri Holdings also owns Jimmy Choo and Michael Kors.
- Revenue and Ownership: Versace generated over a billion dollars in revenue in 2022. Capri Holdings is mainly owned by John D. Idol, its chairman and CEO, who also serves as CEO of Michael Kors.
- Top Institutional Investors: Major institutional investors in Capri Holdings include FMR (Fidelity), The Vanguard Group, and BlackRock.
- Origin and Founding:
- Founding Year and HQ: Versace, an Italian luxury fashion company, was founded in 1978 by Gianni Versace and is headquartered in Milan.
- Distinctive Style: Versace is renowned for its bold, colorful designs and the use of luxurious materials in its ready-to-wear fashion and accessories.
- Early Years and Establishment:
- Apprenticeship and Passion: Gianni Versace developed a passion for fashion while apprenticing under his dressmaker mother.
- Move to Milan: In the early 1970s, he moved to Milan, freelancing for various fashion houses and honing his skills.
- Dream Realized: In 1978, with funding from the Girombelli family, Versace opened his first boutique in Milan, joined by his brother Santo and sister Donatella.
- Expansion and Innovation:
- Business Mastery: Versace controlled every branding and marketing facet, setting himself apart.
- Bold and Innovative Designs: Over the 80s and 90s, he crafted an empire with iconic pieces like PVC baby-doll dresses and silver-mesh togas.
- Multifaceted Expansion: The brand expanded into accessories, furniture, and fine China, leveraging music industry connections for marketing.
- Celebrity Endorsements and Logo Creation:
- Music Industry Synergy: Versace pioneered celebrity endorsements, collaborating with stars like Elton John and Madonna to bridge fashion and music.
- Medusa Logo: In 1993, the iconic Versace logo featuring the head of Medusa was born, inspired by Gianni’s childhood memories.
- Transition and Legacy:
- Gianni Versace’s Passing: In 1997, Gianni Versace tragically passed away, leaving a legacy of refined yet colorful work and a brand diversification into various products.
- Family Involvement: Sister Donatella became creative director, brother Santo became CEO, and Allegra Versace inherited a 50% stake.
- Restructure and Acquisition:
- Company Restructure: In the 2000s, restructuring was initiated by CEO Fabio Massimo Cacciatori, followed by Giancarlo di Risio.
- Blackstone Stake and Michael Kors Acquisition: Blackstone purchased a 20% stake in 2014. In 2018, all Versace family and Blackstone shares were acquired by Michael Kors Limited (now Capri Holdings Limited).
- Current Status:
- Global Luxury Fashion Group: The acquisition formed a global luxury fashion group comprising Michael Kors, Jimmy Choo, and Versace.
- Donatella Versace’s Role: Donatella Versace remains actively involved as the chief creative officer of the company.
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