Versace: A Family Fashion Empire
Gianni Versace was one of the leading designers in the world and probably he was more an artist than a designer: his interests ranged from rock’n’roll to ballett and antiques collecting. Over the years he created a very distinctive Versace style made of bold colors, baroque prints and gilt medusas, immediately recognizable all over the world. After working for Genny, Complice and Callaghan, he showed his first “Signature” collection in 1978.
In the Eighties he gained a greater fame with innovative cuts and eye-catching creations that made him very popular especially among socialites, Hollywood celebrities and rockstars like Bruce Springsteen, Sting, Madonna, Liz Taylor, Elton John,Sylvester Stallone and Princess Diana.
The Versace family now runs a veritable fashion empire made of various product categories and different lines (Atelier Versace, Versace Couture, Versus, V2 by Versace, Istante and many others). Production is generally licensed to leading manufacturers like Zegna (menswear), Ittierre (Versace Jeans Couture and versus), Ruffo (leather wear), ItaloCremona (sunglasses), Cesare Paciotti (men’s shoes), Sergio Rossi (women’s shoes), Laipe (leathergoods) and Rosenthal (chinaware). Couture and part of ready to wear is instead manufactured by Novara-based Alias company (100% owned by Versace). Prior to his sudden death, Gianni owned 45% of the company, his brother Santo – the company’s Chairman and Chief Executive Officer – 35% and Donatella – the group’s Vicepresident and in charge of the Versus brand – the remaining 20%.
Sales performance have always been extraordinary even during the early Nineties recession, a period in which many top brands saw their revenues slump significantly. Annual worldwide sales were 417 billion lira in 1993 and more than doubled last year (840 bn lira). Europe accounts for approx. 36% of total sales, Italy 23%, North America 18% and Japan 9%.
As for distribution, Gianni Versace products are currently sold through luxurious company-owned or franchised Versace boutiques and prestige department and specialty stores. Each shop is located in primary commercial avenues like Via Montenapoleone in Milan or Bond Street in London. Last year, the company opened a spanking 2800 sq. mt. 5-storey boutique in Manhattan’s former Vanderbilt mansion, next to Cartier. Other imposing stores were opened on Vienna’s Graben and in Prague. Versace was one of the first brand names to expand in Russia where the company opened a franchised boutique in Moscow a few years ago. The location, Kuznetsky Most, is now home to many international designers like Ferré and Valentino.
Will the venerable house of Versace survive Gianni’s death? “That is the question”, according to many financial analysts. The Versace company should go public next June at the Milan stock exchange and, later, at the NYSE. Observers however are quite confident of the company’s strength and future sales performance. A successful case history is represented by the Gucci brand: after the stormy exit of Maurizio Gucci from the family business, the Gucci brand gradually returned at the top of luxury goods market, surpassing competitors like Hermes, Prada and Ferragamo. Also Dior, Perry Ellis and Moschino witness that strong brands – if well managed – can successfully survive their founders.
July 21, 1997
‹ Testimonial by Logan Bentley Lessona
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