Ch. 15 - Retailing

I visited Zara and Michael Kors during my spare time before my next scheduled class for the day. I will tell a little about each store, beginning with Zara.


Zara is a specialty store, selling only clothing, shoes, and accessories as their merchandise. The design of the store and its environment shows that they value their merchandise moderately but want everything and as many of it to be accessible to their customers. Everything was stock-piled, broad. The store, generally, is very dim but has ceiling-to-floor windows. The items that are on display are highlighted with a spot light overhead basically shutting out everything else that is in the light.
Visiting this store as a potential customer was ultimately a bad experience for me. I received no attention from any of the employees or anyone. I wanted to purchase a jacket for my daughter but because of the poor treatment, my visit resulted in me leaving the store.

Michael Kors is also a specialty store, selling only clothing, shoes, and accessories as their merchandise. The design of the store and its environments show they value their merchandise very highly. Everything was minimal to show its luxury and simplicity. The store is very bright, there are no dim areas. The brightness of the store makes everything look like its on display. This also ties in with the employees who will have to always be on sight to help customers get what they desire rather than the customers being able to just help themselves.
Visiting this store as a potential customer, I can see why Michael Kors has lived up to its name. I received attention as soon as I entered the store door. Everyone is so full of energy and happy as if they enjoy their job. I wasn't stalked around the store and I didn't feel uncomfortable no matter how I was dressed. I felt welcome. Now, though I didn't purchase anything that time, I was able to see and try on what I wanted. I was very satisfied.

Ch. 6 - Consumer Decision Making

Michael Kors has found the sweet spot of the fashion industry, consumers with money who aren’t rich yet, serving the lower-upper class, the upper-middle class and the aspiring middle class. This consumer market will allow the brand to grow in many different directions. With MK’s stock more than doubling this fiscal year, it has been able to outperform some of its other high-end luxury competitors, Coach and Tiffany, who have both started to decline in growth charts due to the Chinese, their main dependent, spending less on luxury products.

Michael Kors is the most searched-for brand on the web because of it newest lower-priced line which has brought in a wider range of consumers and expanded the awareness of its brand.

The company has been able to grasp a hold on its consumers by conforming to the proper needs of each consumer, straddling generational and social lines, meeting all cultures and classes. Each product is made to be simple, made-well, not trendy, elegant, wearable, luxurious and timeless.

Ch. 5 - Developing a Global Vision

In 2002, Michael Kors LLC opened its first international stores in London and Tokyo. It has been expanding immensely since then with over 350 stores worldwide. Being the smaller luxury retailer in its category, Michael Kors has and still is successfully establishing its brand in all parts of the world.
With China being one of Michael Kors’ manufacturers, and the handful of stores that are already located there, the company has appointed the chief executive to plan to expand its presence in the greater China. By the year 2015, China will account for about 20 percent of the global luxury market. 

Since 2000, Michael Kors LLC has been signing global licensed agreements with other companies to further expand its brand name in stores other than its own in various parts of the world, such as the following:

• Schwartz & Benjamin  - licensee to produce a full range of shoes
• Le Tanneur & Cie - worldwide licensee (excluding Japan) to produce the line of collection handbags and small leather goods
• The Charmant Group - worldwide licensee to produce and distribute a full range of MK spectacles and sunglasses
• Gibo SpA (a unit of Onward Kashiyama Japan) - licensee to manufacture and distribute worldwide (excluding USA) the collection line
• The Estee Lauder Companies - global licensee to sell the designer’s signature scent in more than 20 countries and territories

Micheal Kors LLC, who is known for its glitzy designs and primarily caters to women, reported robust quarterly results as its namesake luxury brand saw strong demand, and said it expects to drive profits in the coming quarters.

Sources: reuters, estee lauder company, CPP Business of Luxury