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Consultancy report on a given company/brand competing in the high end fashion business (versace) - Assignment Example

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The brand represents glamour and elegance in its apparel and accessories design. This report discusses where Versace stands today in the global luxury goods industry. The report…
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Consultancy report on a given company/brand competing in the high end fashion business (versace)

Download file to see previous pages... The report concludes with a comment on the effectiveness of the present strategy and its implications for the future competitiveness of the company.
Versace operates in the high-end fashion industry which is a large but well-guarded industry as far as statistical data is concerned. The luxury goods industry comprises a range of diverse products including fashion, cosmetics, fragrances, jewelry and handbags.
According to a report by Statista (2014), the size of the global luxury goods industry was €212 billion in 2013. The United States is the single largest market for luxury goods and accounts for almost half the volume of sales in the industry. Among the industry players, the most dominant player is the LVMH Group which had sales of around €29.15 billion in 2013 (Statista, 2014). A report by Deloitte (2014) states that the global luxury goods industry is experiencing a comeback after the financial crisis as demand in traditional markets is restored and emerging markets continue to grow.
The high-end fashion apparel and accessories sectors offer products that satisfy the aspirational needs of consumers. The main target consumers are the upper-middle and upper class consumers who possess a developed sense of luxury. These consumers are highly brand conscious and are willing to spend large amounts to communicate their high status through the consumption and display of luxury goods. The consumers are well-connected to information channels and are constantly searching for the latest luxury fashion trends to adopt. They are motivated by exclusivity and sensual marketing campaigns for their brands.
The products in this industry include fashion apparel, jewelry, shoes, bags, watches, perfumes, and so on. Versace operates in all these product categories including fashion, eyewear, fragrances, watches, and home accessories but its primary focus has always been on apparel (Versace, 2014).
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