Ch. 8 - Segmenting and Targeting Markets

The name Michael Kors has become synonymous with the jet set luxurious lifestyle that is timeless and elegant. All is expressed through the sophisticated accessories and ready-to-wear collections. 

Michael Kors, over time, have developed a strategically controlled global distribution network focused on company operated retail stores, leading department stores, specialty stores and select licensing partners. Business is operated in three segments: retail, wholesale, and licensing. The retail segment engages in the sales of all the products, including licensed products. As of March of last year, retail obtained 196 stores in North America and 46 internationally, including concessions in both Europe and Japan. The wholesale segment sells most of the products, including women's and men's apparel, accessories, and footwear to department stores and specialty stores in both North America and Europe. There are 2,027 department and specialty store doors in North America and 650 international department and specialty store doors. The licensing segment licenses MK's trademark on all its products as well as licenses rights to sell to geographical  regions such as: Korea, The Philippines, Taiwan, Malaysia, The Middle East, Turkey, China, Singapore, Hong Kong, and Macau. Geographically, we plan to increase our international retail store base to 100 locations in Europe and another 100 locations in Japan in addition to expanding our shop-to-shop footprint in department stores in both Europe and Japan.

Michael Kors targets all possible genders, ranging from 16 - 60 years of age who obviously have money to spend. The company made changes in the target market from people who are wealthy to the middle class, people who are not necessarily wealthy by have money to spend. This change broadened the lines of who can buy the products, thus allowing MKUSA to make more money. MK reaches out to its customers looking to improve their status related motives. And for those whose social status is already established, Michael Kors is simply the icing on the cake.

Michael Kors does collaborations, called Kors Collaborations, as an initiative to aim at showcasing the special relationships and unique dialogues between Kors himself and creative talents across the cultural spectrum. The most recent collab, the third installment of the series, featured British model and muse, 23 year old Amber Le Bon. These collaborations will continue to roll on a quarterly basis.