The Business Strategy of Michael Kors

Michael Kors is a rapidly growing global brand in the luxury fashion industry led by a world-class management team and a famous designer. It aims to create shareholder value by increasing the revenues and strengthening this global brand. The brand has several strategies in order to achieve the goal.

Production Innovation is one of the most important part of this brand as its main products are accessories, footwear and apparel. Trendsetting and innovative products with unique design features are then necessary to attract the consumers and meet the needs of its target market. Product expansion plays another important role as it helps expand the product categories such as the children’s line and the wearable technology.

The brand will continue to open more stores around the globe especially in Asia and Europe to increase the global brand awareness and market share. It makes the products more accessible to the consumers. However, the brand will also close down some under performing stores to decrease the total operation expenses to achieve more profits. E-commerce becomes being worthy invested because nowadays more and more people choose to shop online so that expanding E-commerce presence is a important plan.

Michael Kors advertises on social media through the use of promo videos, exhibition of upcoming lines and much more based on its digital marketing strategy. The promotion of the “Monkeyaround” campaign on Wechat, a social software in China, is a typical example.

In order to optimize customer engagement, the company plan to continue to invest in technology. The omni-channel strategy shows that more channels will be developed to provide consumers better experiences. The specific ways are personalized shopping experience, new mobile technologies, new customer loyalty program and so on.

Last but not least, the brand will grow its Men’s Business to increase presence and awareness as well.