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.