Michael Kors blamed social media, the stars who appear in them, and the rise of small brands for the rapid decline in the demand for his namesake bags. Has he ever looked at what he sells?
Michael Kors canvas/leather tote. Photo: Hafiz Hazaini for SOTD
Recently, at The Exchange TRX, the swanky new mall in Kuala Lumpur, we walked passed a Michael Kors store. It was sandwiched between Longchamp and Brooks Brothers, and not at once noticeable, like thin slices of cucumber between chunky pieces of bread. Normally, we would have walked on, not even aware of the store, but this particular afternoon, something caught our eye. Framed by the entrance was a strange tableau: A bag, propped up by a skinny steel stand, was placed on an oblong, glassed block. It was an east-west (in fact, closer to a square) black canvas tote with a base in brown leather and trim of the same hide framing the bag. What was especially frightful to our sight was the especially pronounced, gargantuan brand name, spelled out in full, bulked up, embroidered glory. This was not a scream; this was an alarming shreak.
The man who lent his name to the bag was in court two days ago in the second week of a hearing that will determine if competitor Tapestry Inc will get to finalise the $8.5 billion acquisition of Mr Kors's own Capri Holdings. The chief creative officer of the eponymous brand he founded in 1981, when he operated out of his Manhattan apartment, told the judge: "I think we've reached a point of brand fatigue. It's in a state of stasis at this point." According to WWD, sales have plunged from US$4.7 billion in 2016 to US$3.5 billion last year. In the first quarter of this year, the stock price of Capri Holdings has dipped by 13.2% in total revenue, compared to 2013. Sales pressures have mounted for Tapestry and Capri, but it is the latter that is more vulnerable as the Michael Kors brand is reliant on department stores, currently not the preferred retail model in the US for consumers affected by inflation and little desire to shop on non-essentials.
A handbag in the window of the Michael Kors flagship at the Mandarin Gallery. File photo: Chin Boh Kay for SOTD
When asked by his own lawyers which brands he considered the rivals to his bags, Mr Kors replied, "It has become much more elastic—everything from Lululemon, Zara, Louis Vuitton, to resale. Now everybody is out there." That includes brands that he came to know of through social media, such as our own Aupen. He did not say if he liked what he saw, except that when he tried to check their merchandise out online, "the website crashed immediately." It was not mentioned if he continued with the market research into Aupen. But he did state that he continued to be inspired when he spent time on the store floors, engaging his customers, or when he watched people in crowded places, such as airports. He also maintained that Capri was trying to resuscitate the brand, but success alluded them, partly because of "financial constraints." Despite their best efforts, he accepted that "fatigue" (i.e. overexposure) has set in.
Michael Kors made no mention of the designs of his bags or if it could be the lack of that has affected their sales. Even if the bags were alluring from the beginning (or 2004 when the line was launched), much of it today are not even knocked off, as desirable brands often are. In Vietnam's coastal Hoi An Ancient Town, for example, where scores of stores sell duplicate designer bags, it is hard to spot a Michael Kors. That is not to say that the brand's bags are not still in some demand. If you go to City Plaza or Lucky Plaza on Sundays, it is easy to spot them, with their unmistakable branding, whether in the gold hardware of the full name or initials MK. We have been observing the use of these bags for a while now. It is easy to come to the conclusion that the stars who prefer to use Aupen than Michael Kors avoid the latter because they are increasingly designed from the graveyard of transformative design and good taste. Even at the Michael Kors store, it is hard to tell them apart from those sold at outlet malls. In court, there was no attempt to describe the difference.
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