According to a Business Insider story 6 days back, “Michael Kors has lost its status as one of the coolest brands in the industry.” The fashion brand’s stock is underperforming, leading Morgan Stanley’s analysts to remove Michael Kors from its “Best Ideas” list. Michael Kors enjoyed a stunning rise in popularity in recent years thanks to its trendy handbags and watches. But lately, growth has been slowing, and the company has reported a weak outlook for the future.
So what went wrong?
Widespread popularity is the “kiss of death for trendy fashion brands, particularly those positioned in the up-market younger consumer sectors,” industry expert Robin Lewis writes on his blog. Lewis compares Michael Kors to Tommy Hilfiger, which reached its peak in the late 1990s.
Michael Kors is considered an aspirational brand, with consumers paying a premium for its label. Once everyone has the product, it is no longer considered cool.”
ED goes out there and tries to get the pulse of the consumer to find out how much this dethroning affects their buying pattern. Results are for you to see.