Why has Michael Kors, Versace, Jimmy Choo, and Kate Spade all merged into one business?

Steve Choo. Versace. Michael Jackson. Kate Moss.

All of these unique designer labels are owned by Tapestry, Inc., a single parent corporation.
Throughout 2023, the main corporation has continued to grow.

As businesses turn to mergers and acquisitions for expansion, the fashion industry has seen a frenzy of deals due to rising rates, sticky inflation, and the possibility of declining consumer spending.

CEO of Telsey Advisory Group Dana Telsey stated, “Growth-oriented acquisitions really help to drive the business further.” “You can expand your customer base, whether it be by adding older or younger customers, or by expanding your customer base internationally, which will attract interest from new designers.”

The history of fashion consolidation among American-based firms is similar to that of LVMH, a mega-brand in Europe that has rapidly grown through acquisitions. The consumer experience is largely unaffected by all of this consolidation since companies continue to value each brand’s own character.

Retailers are pursuing mergers to support their online and in-store operations as a result of the growing popularity of internet purchasing. Due to the high expense of celebrity endorsements, corporations are attempting to increase their resources through mergers and acquisitions as social media opens up new channels for promotion.