About Us

Michael Kors is an award-wining globally recognized designer who established a company of the same name  in 1981 and has proven successful in translating jet set luxury into a lifestyle brand with products raging from apparel, shoes and accessories for men and women ready to go anywhere!

Value Proposition

Products that are modern in design, high in quality and accessible to a broad target audience because of a three tier brand that includes the luxury, bridge and lower price labels MICHAEL KORS, KORS Michael Kors and MICHAEL Michael Kors.

E-SCM and CRM

E-Supply Chain Management

•OceanGuaranteed Service from China to Port of Long Beach, CA and then to the distribution center in New Jersey takes 20 days.

•At origin, OceanGuaranteed containers are loaded last onto ships and are first off once the ship reaches the Port of Long Beach.

•OceanGuaranteed also has a lower carbon footprint than airfreight. According to data from the Network for Transport and the Environment, containerships on average produce 97 percent less carbon emissions and use only 1.3 percent of the energy of an air freighter to transport one ton of cargo one kilometer.

•The Company requires all employees and management who have direct responsibility for supply chain management to take a course directed at raising awareness regarding the risks of human trafficking and slavery in supply chains, identifying potential risks and addressing those risks when human trafficking and slavery are suspected.

Customer Relationship Management

For E-Commerce

•Call a customer service representative from Michael Kors: 1.800.908.1157

•E-mail

      Hyperlink on website to send an e-mail to Michael Kors

•Online Chat

      With a customer service representative for Michael Kors

Brand Awareness

Michael Kors has truly become a global brand covering the Americas and Europe and with growing brand awareness in Asia. The MK logo is iconic of fine, modern fashion but yet accessible to broad demographics and because of the great product offerings there is something for everyone and the consumer knows it.
 
It is a lifestyle brand that attempts to attract the younger consumer with accessories and carry her/him through out the years into the luxury collections. In the public eye, thanks to his appearance in Project Runaway, he is a fashion guru and the consumer interprets and trusts his fashions as chic and current.

Customer Behavior & Attitudes Toward

The public is susceptible to the strong image and the goodwill associatedwith Michael Kors as judge from Project Runway and for being the face of“Watch Hunger Stop” program, a mission to help alleviate world hunger.Being the Chief Creative Officer he has provided design and executiveleadership to the company since its inception and he is closely identified with the brand that bears his name.  This closeness and involvement with the brand translate into great products that the customer is willing to purchase at a great value time after time.

With the launch of the  MICHAEL Michael Kors collection, brand awareness within the United States has grown exponentially, increasing from 11% in 2004 to 71% in 2011. Also, sales of accessories have grown at an approximately 57.6% CAGR over the last three years, outperforming industry growth. Net sales of accessories and related merchandise (including handbags, small leather goods, footwear, watches, jewelry, eyewear and fragrance) in the retail and wholesale segments accounted for approximately 62.3% of our total revenue in Fiscal 2011.

As a result of increased brand awareness Michael Kors  anticipates that sales of accessories and related merchandise will continue to grow and will become an increasingly important driver of global comparable store sales growth.

Market & Customer Segmentation

Market Segmentation: 

Wholesale and retail luxury goods market.

Customer Semgentation: 

Male and female consumers in Gen X and Gen Y.  Strong relationships with premier wholesale customers such as Bergdorf Goodman, Saks Fifth Avenue, Neiman Marcus, Holt Renfrew, Bloomingdale’s, Nordstrom and Macy’s in North America; and Harrods, Harvey Nichols, Selfridges and Galeries Lafayette in Europe. These relationships enable Michael Kors access large numbers of our key consumers in a targeted manner.

Part of the customer segmentation involve initiatives that are designed to transform the Michael Kors displays at select department stores into branded “shop-in-shops” with specially trained staff to provide department store consumers with a more personalized shopping experience than traditional retail department store configurations.   These initiatives have helped increase total revenue for our wholesale and retail segments.

Brand, Product and Company Positioning

    Michael Kors operates in the growing global luxury goods industry, which, according to the Altagamma Studies , is predicted to grow from $230.1 billion in 2010 to between $299.3 billion and $305.9 billion in 2014, representing a 7% compound annual growth rate (“CAGR”).

    While apparel makes up an important part of the business, there is a growing focus on luxury accessories and footwear, positioning the brand to participate in what was the most resilient and fastest growing product category within the global luxury goods industry from 2005 to 2010.

    In 2010, the accessories product category generated sales of approximately $57.5 billion, representing 25% of total sales for the industry. The majority of current sales come from North America and Michael Kors continues to build the business and brand awareness in Europe and Asia.

SWOT Analysis

STRENGTHS 

• Rapidly Growing Luxury Lifestyle Brand with Best-in-Class Growth Metrics : 58.1 % and 28.0% revenue growth in Fiscal 2011 and Fiscal 2010 respectively.

• Design Vision led by World-Renowned, Award-Winning Designer . Michael Kors, a world-renowned designer, personally leads the design team. Michael Kors and his team are responsible for conceptualizing and directing the design of all products, having this design leadership is a unique advantage. He is very involved with the marketing and publicity strategy and is closely identified with both the brand that bears his name and the company in general.

•  Poised to Take Share in the Growing Global Accessories Product Category . According to the Altagamma Studies , from 2005 to 2010, the accessories product category was the fastest growing product category in the global luxury goods industry representing 25% of total luxury goods sales.

 

WEAKNESSES

• Since the e-commerce business is
 now operated by Neiman Marcus direct privacy breaches and the 
engagement of third parties to operate the e-commerce business could negatively affect our reputation, credibility and businessreducing our ability to attract and retain customers.

•We are responsible for storing data relating to our customers andemployees and rely on third parties for the operation of oure-commerce website, michaelkors.com , and for the various socialmedia tools and websites we use as part of our marketing strategy.

•However Michael Kors does not control these third-partyservice providers and cannot guarantee that no electronic or physical computer break-ins and security breaches will occur in the future. 

OPPORTUNITY

•    Bringing e-commerce in-house: Michael Kors has plans to bring its e-commerce operation currently operated by Neiman Marcus in-house. This should improve the customers experience of the brand while on the web, increase margins and exceed management's current targets of e-commerce generating at least 10% of North American retail revenue longer-term.)

•     US and Canada e-commerce will be in-house and operational with a new site and platform by February 2014, with Europe to follow within a 6-8 month period, and Japan and China down the road. Finally, since 40% of the e-commerce site web traffic is driven by international viewers that the company currently can't ship to, bringing e-commerce in-house and developing these capabilities creates many more opportunities for market share gains down the road.

THREATS

•There is an abundance of competitors in the luxury apparel and accessories business.

•Keeping in touch with the target customer is eminent for the 

growing success of the brand.

Positioning of the Website and Retail Stores

Aesthetics of the retail stores and website are emblematic of the Michael Kors brand including, fixtures, color palettes, ads and photography.

There is cohesiveness in the presentation of both website and retail stores with the Michael Kors brand DNA, simple yet elegant American jet-set lifestyle. 

E-Commerce: comments, blog, trend, social media, etc.

•Strong social media presence

•Links to Facebook, Twitter, YouTube & Twitter on website

 •Michael Kors has its own YouTube channel which presents the public with the latest collections, trends, new products, events and fund raisers.

 

Merchandise Assortment

   Both Michael Kors and MICHAEL Michael Kors collections are offered in the website

•Apparel for women and men ranges from $40- $2995   


•Shoes $49- $995

•Accessories $80- $400

•Handbags $68 - $1300

Watches and jewelry $225-$395, $95- $250

   

Marketing Campaign for Sporty Sexy Glam Beauty Line

“So, I think those three things — sexy, sporty and glam — have always been the DNA of Michael Kors, and in a strange way, the Michael Kors woman really is all three of those things — it’s just that she feels more strongly about one of them at certain given times. So I asked myself, how can we express that both with color and with fragrance?” - Michael Kors

The collections Sporty, Sexy and Glam will launch in August 2013: each includes a fragrance, blush, lipstick, lip gloss and nail polish.

Marketing Campaign

YouTube

–Integrate an interactive video where viewers could click and shop the featured item or collection.

Fashion's Night Out

Pop-Up shops in stores

and main events in NYC, 

L.A. and MIA

A personality to represent each element of the collections for T.V commercials

A celebrity to embody sporty: Vanessa Hudgens

A celebrity to embody sexy: Hayden Panettiere

A celebrity to embody glam: Leighton Meester

Print ads with top model Karmen Pedaru and life size images for retail spaces

Website Aesthetics

PROS

   •Emblematic presentation of the Michael Kors brand is present both in     website and retail stores and shops

   •Easy to navigate

     •Images are clear, includes detailed description of items, front and back views are a plus

CONS

 •Accessories tab should include all categories: handbags, shoes, watches and jewelry

•The website should have background music to make it more vibrant and appealing to the younger target customer

Fraud & Security

Security 

Measures have been implemented in an effort to safeguard the personal information within the company’s custody and control, including only providing access to personal information to employees and authorized service providers who require such information for the purposes described in their Privacy Policy. They maintain reasonable administrative, technical and physical safeguards in an effort to protect against unauthorized access, use, modification and disclosure of personal information in their custody and control. Our service providers are not authorized to use or disclose your personal information for any purpose other than providing the services on our behalf or as otherwise required by applicable law. 
To provide an increased level of security, online access to certain personal information may be protected with a password the customer selects. 

Browser advisory 

PC users should place their online order using Internet Explorer or Firefox. Macintosh users should place their online orders using Safari or Firefox. These browsers allow us to offer our customers the highest level of security; some other browsers prevent users from viewing secure pages during the checkout process. We apologize for any inconvenience. 

Ethical and Compliance Issues

Protecting your information

At Michael Kors, as part of our ongoing commitment to ensure that your shopping experience with the Web Site is protected, we will prosecute all unauthorized or fraudulent transactions to the fullest extent allowed by law. 

REFERENCES

•http://www.nasdaq.com/markets/ipos/filing.ashx?filingid=7902678

•http://www.wwd.com/beauty-industry-news/color-cosmetics/michael-kors-adds-color-body-care-to-beauty-lineup-6890237

•http://www.michaelkors.com/
•http://www.baileybox.com/designers/michael-kors-jewelry/

•http://www.supplychainbrain.com/content/research-analysis/supply-chain-innovation-awards/single-article-page/article/first-time-definite-oceanland-service-provides-asia-us-shippers-alternative-to-airfreight-1/

•http://phx.corporate-ir.net/phoenix.zhtml?c=235654&p=irol-supplyChainDisc

•http://seekingalpha.com/instablog/1304711-elizabeth-montgomery/1543741-kors-solid-3q-results-prove-long-growth-runway-ahead

•http://www.luxurydaily.com/michael-kors-value-proposition-physical-market-presence-defined-sales-success/