Get Ready for a “Choo” New Look!
Michael Kors fans may soon see a new look to the designers’ trendy handbags. Reports have surfaced that Michael Kors has purchased Jimmy Choo for $1.2 billion dollars. Former Jimmy Choo investor and former CEO Robert Bensoussan states “[Kors is] probably one of the best choices in the market to buy that company and also because they want to keep the company independent.”
Kors recently experienced a shrinkage in revenue, falling 7% short in sales. Many business gurus are starting to believe it is due to the repetitive style, often seen in his handbags, wallets and other leather goods. This drop also resulting in the close of 100 stores in the U.S.
Though Choo representatives feel the collaboration will work well, there is hesitance about price and quality. Choo heels retail on average for about $850.00, whereas Kors shoes start at just $99. The difference in price range alone leaves room for question on quality.
However, the two companies seem to have compatible and synchronized products and similar points of views on what is the ideal standard of a luxury brand. “There are a lot of synergies: in bags for Jimmy Choo and shoes for Kors.” states John Idol, chief executive of Michael Kors.
Hopefully, this major purchase will be worth the price tag for Kors.