- Aileen Yu |
In a capitalist economy, mergers and acquisitions are the key to success and this is more relevant than ever for the global fashion industry. When it comes to multinational luxury companies, Kering, LVMH and Richemont dominate the sector. In recent years, Capri Holdings (previously known as Michael Kors) and Coach are setting their sights on becoming the ultimate American conglomerates for luxury-leaning retail by acquiring lucrative brands. What does this mean for the staff?
Internal development and training opportunities
With the excitement of a takeover, the first affected are the employees of the merged company. A positive impact can be greater financial stability and an emphasis on stimulating its human capital to acquire new skills. In fashion, some cases led to an increased number of retail stores and more investment into the original brand’s digital strategy. If this is the case, it would be an ideal time to jump at any opportunities of development and training that comes with the creation of new roles. If you always wanted to work for that newly acquired fashion house, this would be the time to apply.
Access to new markets can mean greater growth
As Donatella Versace said to Harper’s Bazaar last week,“We believe that being part of this group (Capri Holdings/Michael Kors) is essential to Versace’s long-term success...to grow.” Being bought out by a conglomerate these days doesn’t entirely mean the design house will lose its brand identity. If the transition goes smoothly, it could mean expansion into larger markets which needs more resources in distribution and marketing. Some successful examples have been when the brand retained its high quality products while still developing lower price points or alternative lines to tap into the ever-growing “affordable” luxury market.
Move up the career ladder
After a merger, employees are usually concerned with their job security. Likewise, the employer should be aware to pay conscious attention to their top senior talents. “Acqui-hire” from a takeover is a tremendous asset. Top senior managers will be vital in implementing the brand’s original organizational structure and to keep up the company morale while moving forward. Recruiters from competitors will also be trying to lure executive talent away. This could be an opportune time to ask for that long-awaited raise or promotion.Photos: Coach UK website