BY AURELIA MITCHELL DURANT Globalization has become a reality for the planet. The very loose and fluid definition of globalization is summed in an often-quoted quote by former Secretary-General of...
Originally posted 2014-11-12 11:00:00.
By Diana Chan | amdlawgroup.com
Just when we thought the holiday season could not arrive any sooner, companies have already geared up for holiday shopping. Starbucks has begun promoting its holiday red cup and seasonal flavors, while the Wall Street Journal has set up a “Christmas Sale Tracker” that updates every hour to help readers monitor prices for the “hottest gifts.” As consumers prepare to buy gifts, they typically are looking for popular items at the lowest price. Michael Kors, however, is not planning on offering any promotion deals.
One characteristic that gives luxury fashion brands their high-end status is exclusivity—a characteristic that the Michael Kors brand has struggled with, especially as a few thousand department stores sell Michael Kors products, offering them at significant discounts. What seems like an attempt to maintain exclusivity, Michael Kors is not planning on providing promotions during this holiday shopping season, showing the company’s desire to maintain an exclusive brand. On the other hand, Kors’ products are already sold at significant discounts in departments stores and will continue to be sold at discounts during the holiday season.
Michael Kors also moved its principal offices to London to align itself with other luxury brands, which may be a signal of Michael Kors’ attempt to reestablish itself with other luxury brands in the European market. “Affordable luxury” is a term that has consistently been used to describe the Michael Kors brand. Is not offering promotions during this holiday season an indicator that Michael Kors will move to a more exclusive brand that maintains higher prices? Or will Kors continue to maintain its status as “affordable luxury”?
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