This can be seen in Versace’s recent effort to associate themselves with mass market company H&M in 2011. It may have generated a large media buzz, but at the same time it has lead them to slightly discouraging and losing their core target audience of more wealthier customers, who desire exclusive products, backed up by brands’ heritаge and trаdition. In 2011, after 2 years of losses and restructuring its wholesale and retail divisions, Versace returned to profit, however, as in 2013, a family-owned company is considering a possible sаle of stake or an IPO to fund the future business growth and expansion in the US and Asia. This happened primarily due to the power struggle, aggravated by disputes over cost cuts, that has occurred between key people of the organisation, which have led to poor marketing decisions, and consequently the diminishing business to consumers (B2C) relationships between the brand and its clientele across the globe. Currently, the luxury-goods sector currently is experiencing a wave of brand consolidations especially due to recent acquisitions of Bulgary & 17% of Hermes by the industry’s largest player LVMH and it is worth mentioning that the main goal of Versace despite arising challenges is to remain a family-owned business.
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