A highly known luxury fashion label, Michael Kors, is going downhill according to the recent report regarding its share prices. With inventory increasing, Michael Kors shares have decline 25% in the past six months.

 

High sales volume is a green light for a business, but maybe not in this case. The recent phenomenon experienced by Michael Kors is caused by too many people wearing the brand itself, making the brand less cool for the public eye, therefore decreasing demand. Its suspected that the decline in the business is caused by its use of several brands I several price points to reach different level of the market segments that in this scenario, completely backfires.

 

With many people wearing the brand, it’s losing its unique selling point as a product in the market. However, this is not the case of Louis Vuitton and Prada which rise a new speculation about the cause of this decline. In my opinion the price put plays a crucial role in the fall in the performance or Michael Kors as a luxury brand. Careless marketing decision lower the brand image, which is everything in the luxury bag industry.

 

In the end the collapse of brand image can be avoided by maintaining the appropriate value propositions to be in the luxury brand industry. New marketing decision is needed to stop Michael Kors from going to square one.

 

http://finance.yahoo.com/news/3-reasons-michael-kors-could-162301709.html