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Tag: handbags

  • Michael Kors Brand Losing Value? Is It Oversaturated?

    The Michael Kors stock had a good run, but investors are now wondering if it has reached its full potential in the United States.

    Michael Kors has released several brands targeting all three demographics of shoppers. They have products for the high-end market, the middle-market, and for discount outlet stores. Industry expert Robin Lewis said, “Some would argue all of those segments will simply end up competing with each other, thus cannibalizing the top end of the spectrum.”

    Now, Lewis is comparing the Michael Kors brand to Tommy Hilfiger, which reached its peak in the market in the late 90’s.

    Based on reports, Michael Kors’ revenue has increased 55.6 percent since December 2011. Its market shares also boosted to 312 percent in the same time period. The brand’s stock gains and revenue growth seems difficult to maintain over time. Analysts are fearful that the brand’s inventories are too much, which will eventually lead to lower earnings and compressed profit margins.

    Michael Kors is not the only brand falling from grace. Coach, which was once at the top, has been struggling for a few years now with competition from Michael Kors and Tory Burch. Another example of a brand that has fallen out of the picture is Juicy Couture, which fell off the radar as their signature sweat suits were just a fad.

    Barclays retail analyst Joan Payson said that the Michael Kors brand could continue to grow in Europe over the next two years. However, the brand remains at a risk with the decline in the North American market share. The decline is a big issue with the brand, since the region provides 80 percent of the brand’s overall sales.

    Google Trends also shows that searches for Michael Kors have declined five weeks straight, starting in June. Lewis said, “Once a brand is declared as too accessible and overexposed by its loyal customers, no amount of fashion trickery will bring it back.” Is this the end for Michael Kors?

    Image via YouTube

  • Louis Vuitton Wants To Demolish Hundreds of Websites

    Louis Vuitton, the manufacturer of expensive handbags carried by thousands of people who usually cannot afford to do so, is asking a Florida court to put the hurt on hundreds of websites that sell knock-off Vitton products. Their targets: louiszvuitton.com, knockofflouisvuittonhandbags.com, and any other company that makes its money selling cheap imitations of their beloved products.

    However, Vitton isn’t just asking for authorities to crack down on the sale of illegal merchandise. They want companies such as Blue Host and Go Daddy to shut down these sites entirely. Furthermore, they’d love for search engines to exclude this sort of content from their respective databases. This sort of mentality is eerily similar to the doomed legislation known as Stop Online Piracy Act (SOPA).

    Chanel successfully attempted the same maneuvers in Nevada last fall. A federal judge handed out injunctions that forced registrars and search engines to comply with any and all enforcements. Apparently Vuitton hopes that the same outcome will be reached in Florida.

    If this sort of behavior becomes the norm, you can expect other companies to follow suit. In fact, the FBI and Homeland Security seized nearly 150 websites in 2011 as part of their “Operation In Our Sites” campaign. Websites that were known to sell counterfeit merchandise were effectively shut down, their content replaced with anti-piracy propaganda. What’s odd is that some of these sites contain the “downloading movies is bad” messages despite having little or nothing to do with Hollywood or the film industry as a whole.