INTRODUCTION

Gianni Versace usually referred to simply as Versace, is an Italian luxury fashion company and

trade name founded by Gianni Versace in 1978. The company produces upmarket Italian-
made ready-to-wear and accessories, as well as haute couture pieces under the Atelier Versace
brand. Versace's logo is inspired by Medusa. Medusa is a mythological goddess whose hair is
made up of snakes, and when people stared into her eyes, they would turn into stone. On 25
September 2018, American Michael Kors Holdings acquired all outstanding shares in Gianni
Versace for $2.12 billion (USD), the acquisition was completed on 31 December 2018, keeping
on Donatella Versace as head of creative design. Versace is a global brand with its product
presence in several countries of the world. It has its headquarters based at Milan in Italy.

HISTORY
In 1972, Gianni Versace designed his first collections for Callaghan, Genny, and Complice. In
1978, the company launched under the name "Gianni Versace Donna’’. The first Versace
boutique was opened in Milan's Via Della Spiga in 1978. In 1982, the company expanded into
the accessory, jewellry, home furnishing, and china industries. In 1993, Donatella Versace
created the "Young Versace" line as well as "Versus’’. In 1994, the brand gained widespread
international coverage due to the black Versace dress of Elizabeth Hurley, referred to at the time
as ‘’that dress". As of 2016, more than 1500 boutiques operate worldwide; the first boutique
outside of Italy was opened in Glasgow, Scotland, in 1991. Versace distributes its products
through a diversified distribution network, which includes its own boutiques and its own
e-commerce sites (covering 85 countries worldwide) but also multi-brand retailers and e-
retailers. In 2006, Gianni Versace entered into a partnership with Automobile Lamborghini. to
produce the Lamborghini Murciélago LP640 VERSACE. The car had a Versace white satin
interior with the Versace logo embroidered into the seats. The car was available in black and
white. There were only ten units produced. The car was sold with a complementary luggage set,
luxury driving shoes, and driving gloves. The Versace company teamed up
with AgustaWestland in 2008 to create the AgustaWestland AW109 Grand Versace VIP luxury
helicopter. The helicopter includes Versace leather interior and a design on the outside. In 2009,
Versace and H&M released a new line of clothing that would be sold in H&M stores. The store
sold both men's and women's clothing and home items such as pillows and blankets. In 2015,
Versace collaborated with dancer Lil Buck to release a line of sneakers. In 2020, the fashion
house announced that it would stop using kangaroo leather in its luxury products. This followed
Versace's 2018 decision to ban the use of real fur in its collection. In 2021, Versace opened their
first boutique in SoHo, New York.
 PARTNERSHIPS
Versace partnered with the Mind Group firm in China in 2015. The two companies designed
luxury residence towers called the "Versace Residencies." The goal of the creators were to
combine Versace's luxury home elements with elements of traditional Chinese culture. This
same year, Versace partnered with the ABIL Group in India to develop another residential
project. These luxury homes are located in South Mumbai.
In 2015, Donatella Versace was featured in Riccardo Tisci's Givenchy campaign.

THE ANTI-LAWS OF MARKETING FOR LUXURY

VERSACE implements all the Anti-Laws of marketing for luxury and is one of the top most luxury
brands in the world which enjoyed a social media engagement rate of 25.8% in the year of 2021.
DEMANDS MUST NOT BE MET
VERSACE imbibes this law by making the product difficult to obtain as they produce each
product at a high cost range and keep a scarcity of the product hence making it difficult for its
clients to obtain them.
LUXURY DOES NOT NECESSARILY LISTEN TO ITS CLIENTS
Luxury doesn’t spot a gap in the market and fills it but creates a need, No luxury brand should
listen to its clients and provide them the products that are expected from the brand as this lowers
the value of the brand in the markets and that’s what VERSACE does it produces products
according to their convenience and doesn’t reach up to the expectations but exceeds them.
CLIENTS MUST BE INSTRUCTED
VERSACE has an aura of mystery about itself like as a society we are always looking for means
to show our gradual elevation. Someone who’ll play this role of advisor, educator and
sociological guide to get us to the next level. So instead of taking the best friends approach,
luxury takes the role of a parent. One that respects the child but keeps a certain distance to
ensure that the child understands that they are the point of authority. Not to mention, the distance
maintains an aura of mystery
POSITIONING IN LUXURY IS NOT COMPARATIVE
VERSACE positions itself in such a way, such as through price points, services or communication, it
can help convince customers to prefer your brand over your competitor. Whereas this relies on
competitor comparison to win over a client, luxury thrives off their unique identity. Being superlative
means having and maintaining a strong identify that reveals a bold expression of taste that’s authentic
and timeless. Luxury should never be seen to be comparing itself to other brands (aka competitors).
It’s the ‘take me as I am or leave it’ mentality that draws you to the brand.
DO NOT PANDER WITH CUSTOMERS WISHES
VERSACE doesn’t promote or follows the phrase that “the customer is the king”. Their clients
most likely were drawn to them because they had a clear brand identity, a solid family history, as
well as exemplary production quality. The moment they decide to open itself up to customer’s
opinions and requests, all that hedonism and elitism goes out the door; carrying their pricing
power in hand. This is because a small request made today, could affect the course of
VERSACE for years to come. At all times, VERSACE is protecting the very elements that made
them desirable in the first place – such as stature, ingenuity, shock-value and astronomical
prices – thus their willingness to resist client demands.
FLAWS ARE TURNED INTO USP
Product excellence is basically luxury’s middle name. We know luxury to be exquisitely made
from the finest materials and by the best hands in the industry. However, VERSACE will often
add a few ‘flaws’ to their perfect products. Mainly to give them a little character, as well as,
enhance their rarity quality. While traditional marketing would heavily advise against putting your
flaw out there for the world to see, luxury flaunts them as their guarantee of authenticity.
Referred to as the ‘madness’ touch in the Luxury Strategy, luxury craftsmen will constantly
pursue new complications to add to their masterpiece for the sake of this art. A move that leads
luxury consumers to collecting these rarities.
KEEP NON-ENTHUSIASTS OUT
If you don’t like VERSACE that’s fine by them. They aren’t going to adjust themselves to
accommodate any non-enthusiasts because the relevance of their brand isn’t dictated by the
sales growth. Unlike in traditional marketing, where poaching clients from their competitors is a
marker of success. Consequently, they are willing to create new products that will help them
secure various customer segments. If VERSACE operated on the same principle, it would dilute
its value. VERSACE goods are intentionally scarce and unique, which is why they have no
problem excluding a clear majority of the public and focusing on customers who share their
values instead. So, when a VERSACE is looking to grow it’ll look as penetrating new countries
that have a growing appreciation for luxury (and the purses to afford it)

PROCTECT CLIENTS FROM NON-CLIENTS

VERSACE can’t’ be too open to the public as it would much ‘open’ is harmful to the brand’s
social function. It can’t be too closed off either as this is confining and leads to financial
suffocation. So, VERSACE turns to subtle segregation to strike the balance. ‘In stores, for
example, it is necessary subtly to introduce a measure of social segregation: ground floor for
some, first floor for others, but public relations are ultra-carefully targeted, like the CRM for the
privileged (personal invitations to meet the designer, the brand perfume nose, or the head wine
buyer).

ADVERTISING IS NOT TO SELL

An obvious way to see the differences in strategies is to look at their advertisement campaigns.
Traditional marketing needs to push their USP in their adverts. Thus, the sales proposal will
structure the sales pitch with the USP content imbedded in the text. Whereas they are pushing
reality to make a sale, VERSACE marketing’s focus is on promoting the dream. Consequently,
an ad can simply be the product and a model, with a catchy or mysterious tagline. Nothing more.
No explanation about how it works, which experts recommend it or client testimonials. Once the
customer is lured to the store by the high-end photography of the advert, they are then exposed
to the commentary of the product. Often, clients will be handed a brochure book that explains the
origins of the brand, the various models on offer and the journey of each of these products.,
VERSACE recreates and sustains the dream because purchases bring reality closer to the
dream. Unlike everyday goods, which profit from multitudes buying and thus promoting a
product. “Every time a flesh-and-blood human being buys a luxury product they destroy a little bit
of the equity, they increase the product’s visibility – and contribute to its vulgarization by putting it
in the public eye.

COMMUNICTION IS VITAL
Traditional marketing only wants to reach target consumers; individuals that will more likely buy
the goods and thus become a return on investment. VERSACE marketing has something else in
mind. Two value facets if you will. The first caters to the individuals that can buy these goods for
themselves. The second is to make the brand name familiar even with the demographic that
can’t actually afford it. Part of VERSACE’s value is having people outside the target group
recognise them from even the smallest details. It builds the desire for the brand and elevates
their prestige levels.

PRICING STRATEGIES-PRESUMED/ACTUAL PRICE

Ever noticed how VERSACE products never put their prices on their adverts or in direct view in the stores? It’s
not because they think the number of zeros may scare clients off. On the contrary, they want you to imagine that
there are more zeros on the end of the price tag. They will never lure you in with an introductory offer such as a
handbag starting at 10,000 but with all the bells and whistles it’ll come to 20,000. When it comes to luxury,
customers should select a piece based on how it makes them feel not on how much it costs. Now, over
estimating the price increases the value of the product even for the person wearing it.

LUXURY SET THE PRICE, PRICE DOES NOT SET LUXURY

VERSACE starts off with the product and once they’ve completed it, they can then set the
price. Again, they have a brand image and hallmarks of luxury to think about. This supply-
based marketing approach will also take into consideration what level of luxury the client
perceived the product to reside in. The more they consider it to be luxury, the higher the
price tag will go. Classic products, on the other hand, follow a demand-based marketing
strategy. Marketers will go out into the market and try to suss out which price level is ready
to accommodate a new product. From there, they can decide what kind of product can be
produced to meet this demand.
RISE PRICES AS TIME GOES ON TO INCREASE DEMAND
 Luxury is a consequence of meritocracy and thus ‘To live in luxury you have to be above others,
not be ‘reasonable’, in both senses of the word’. Reasonable here meaning easier on the
pockets, as well as, giving the customer an opportunity to compare it to another competitor in the
market luxury doesn’t want its goods or brand to be compared to another. Instead, VERSACE
raises its prices to dissuade the bargain hunters from approaching the brand. But this creates a
new problem, it makes the brand more attractive to a new group of clientele that hadn’t
recognised the brand when its prices were so low. As problems go, this is a highly welcomed
one. VERSACE raises prices over time is to make the company increase their sense of
responsibility. The higher a brand climbs in the luxury chain, the more crucial it becomes for its
employees to develop a mentality of quality to create the ultimate experience. Doing everything
in their power to make the customer’s interaction with the brand even more valuable.

KEEP ON RISING THE AVERAGE PRICES OF THE PRODUCT RANGE

Raising the average price of the brand means adding new products to the exciting ones to
increase the overall value. Note, the existing goods should remain at the same price and not
drop in any way that could be viewed as a ‘sale’ or ‘clearance’. These additions will come in at a
higher price that will be justified through the craftsmanship, material and quality utilised; of which
will be explained in the store. The new, more expensive products are added to introduce a novel
idea; not be the ‘new and improved’ version of the older collections. Raising the average price of
the brand is necessary because the middle class continues to grow. Consequently, the brand
has to ensure that the dream they’re sharing ‘have a dimension of non-accessibility yet remaining
at a close distance’.
LOSING SALES AS PART OF THE STRATEGY

VERSACE may be in the business of selling dreams, but they’re realists when it comes to luxury
strategy. By raising prices consistently, they are aware that it could not only result in the loss of
customers, but also sales as well. The brand will put out their mysterious ads and provide
literature of the products which includes its facts and story. However, the team will not pressure
the customer into buying the product. VERSACE never chases customers, it lets them come to it.
For example the time when Versace had a controversy in August 2019, Versace produced a
range of tops that suggested "Hong Kong and Macau were separate countries". Versace
apologised to its Chinese customers, said it had made a mistake in the design and would destroy
the offending clothing on 11 August 2019.Chinese actress Yang Mi, who also is the brand's
ambassador in China, said she would end her association with Versace, through this controversy
it did lose its sales but the audience of the ambassador who weren’t aware about the brand got
to know about it so the brand lost its sales but gained more audience in that country and this was
its strategy that was successful but the clients couldn’t understand its actual purpose behind the
controversy.

KEEP CELEBRITIES OUT OF COMMUNICATION

VERSACE must dominate its clients, Working with a celebrity may undermine this because it
appears that the brand needs their celebrity status to thrive. VERSACE shouldn’t need anyone’s
status and simply excel off their brand identity. Thus, if they must interact with celebrities, they do
so in the way paparazzi court the stars, “If celebrities are used to promote the luxury product, the
status of the latter is reduced to that of a mere accessory.” For example when the luxury brand is
breaking into a new market, they can use the celebrity as a testimonial or ambassador to that
specific country. That way, they can become an incarnation to a dream that may still appear to
be out of reach for this new customer base.

CREATE BARRIERS
VERSACE distributes a rarity so it does not need to be readily available. VERSACE makes you
wait for it. Whether you’re stalking out the physical store or refreshing the website tab, it’s
the inaccessibility that drives up the customer’s desire for a product. Even after you get it,
just knowing that there are other’s who are still searching and longing for it gives it that extra
value. Consequently, VERSACE have set up strategic obstacles such as financial, logistical, or
cultural to increase the strain in desire. However, time will always be a significant facet to
VERSACE and is probably why anything that’s sought-after has an awaiting list.

NURTURE THE ARTS

VERSACE maintains the natural relationship between rarity and craftsmanship in its goods.
VERSACE, conversely, doesn’t follow anyone and prefers to be the curator of taste. It seeks to
be creative, bold and different, hence its decision to stay away from popular art. Instead, it
gravitates towards art that suggests timelessness such as classic art. VERSACE will associate
with emerging arts that are an acquired taste or may never achieve mass recognition. VERSACE
will partner with these artists for artistic events such as exhibitions and sponsored concerts. 

DO NOT RELOCATE FACTORIES

The concept of MADE IN is vital in the luxury industry. Where mass market companies will move
their operations to the location with the most sympathy for their bottom line and overheads,
luxury brands choose to stay put. They’re ready to foot the bill of staying in a place that
is steeped in culture to create that association. They are also careful about outsourcing parts of
their production as it means the brand loses control of part of the production process and how
the raw material is handled. Whereas they focus on identity, quality, quirks and handmade
craftsmanship executed to perfection, an outsourced manufacturer may only be concerned with
the mechanical aspect of it and chose to go through the motions. One scenario where they can
comfortably delocalise production as a luxury brand is when they’re partnering with known quality
materials or skills from another region. Note, they are doing so for quality purposes and not
because they’re trying to save a few coins. VERSACE does the same as its headquarters are
located in Milan, Italy. Its goods come with MADE IN MILAN initiating that they do not relocate
their factories.
Some brands disregard the Antilaws of marketing putting their goods into resale of reconstructing
their goods for cost cutting and saving their time on their products and these are against the
antilaws of the marketing for luxury goods resulting in the counterfeiting of the original goods and
dropage of the audiences of the actual brand to transferring them to the resellers who are selling
the first-hand products of the luxurious brands this is also the one of the main reason why
Versace lost its engagement rate from 25.8% in 2021 to 7.8% in 2022 till now thus protecting
their trademarks and creating the products that’ll not be easy to counterfeit will prevent in the loss
of the company.