Submitted by: Submitted by DieuLuc
Views: 453
Words: 364
Pages: 2
Category: Business and Industry
Date Submitted: 12/04/2011 07:19 AM
According to the analyses of my partners, we can say that the cooperation will not cause a brand dilution; we consider that it’s more like H&M to go up into luxury world rather than Versace to go down.
The cooperation has created a huge buzz, but in fact Donatella Versace, the head designer for Versace has said these words. What makes her change her mind perhaps is the timing. 2011 is an important year for Versace, it rebuilt the connection with celebrities’ world, following the step of other luxury brands it relaunched its second line Versus to widen its audience, it announced that it will restart the haute-couture show in Paris which has been canceled since 2004.
But after this, maybe a question will come out in your mind. Why Versace collaborate with H&M but not ZARA?
With the almost equal income, ZARA opened 448 new stores in 2005; while H&M only opened 190 new stores. Now we can see the different marketing strategies, ZARA relies more on location of a retail establishment rather than advertising to attract customers. But H&M is always good at using the channel of campaign to promote their products brand, and associate with celebrities’ world. That is what Versace needs; they want rebuild and promote their brand. H&M could be the bester promoter.
On the second part, H&M has already lots of experience of co-branding. So why not choose H&M as a partner?
Conclusion
Versace is such a dramatic luxury brand, it was on the top of high fashion, then suddenly lost its founder and designer Gianni Versace, it suffered for deep financial crisis for years, it faced the cruel reality of luxury market. But now after the reconstruction, Versace began to shine. It focuses on the high price production in order to move the company to another sector of the market.
And without doubt, the cooperation with H&M will bring a high income, attract public eyes and put the brand image into the heart of symbolic audience.
That’s all our team...