Boteanu Alexandru

Simion Elena
Șuteu Mihaela
Vălimăreanu Simona
Anul II, Seria I, LMA-Germană

Versace

Founded in 1978 in Milan, Gianni Versace SpA is one of the leading international fashion
design houses and a symbol of Italian luxury world-wide. It designs, manufactures, distributes
and retails fashion and lifestyle products including haute couture, prèt-à-porter, accessories,
jewellery, watches, eyewear, fragrances, and home furnishings all bearing the distinctive Medusa
logo.

The Versace logo is the head of Medusa, a Greek mythological figure. The logo came
from the floor of ruins in Rome that the Versace siblings played in as children. Gianni Versace
chose Medusa as the logo because she made people fall in love with her and they had no way
back. He hoped his company would have the same effect on people. The Versace brand is known
for having flashy prints and bright colors. The Versace Group distributes its products through a
world-wide D.O.S network which includes over 200 boutiques in the principal cities and over
1500 wholesalers worldwide.

Donatella Versace has been Artistic Director of Versace since 1997 and has steered the
brand into the 21st century. Today, Versace represents its heritage through its strong and fearless
designs, while addressing a new global audience which continues to strengthen Versace’s
position in contemporary culture. In 2000 Gianni Versace Spa opened Palazzo Versace, the first
hotel project to be branded by a luxury goods company, which provides tourists and travellers the
opportunity to experience and enjoy the complete Versace lifestyle. The second Palazzo Versace
built in Dubai opened in 2015. The third Palazzo Versace will be built in Macau, China.
In February 2014, Gianni Versace SpA announced its agreement with Blackstone to participate in
the next phase of the Company’s development. Blackstone owns 20 percent of the company;
while the Versace family remains at its heart, with Ms. Allegra Versace Beck, Ms. Donatella
Versace and Mr. Santo Versace all playing important roles in the company. Donatella Versace
holds the dual role of Vice-President of the board and Artistic Director.

In 2006, Gianni Versace S.p.A. entered into a partnership with Automobili Lamborghini
S.p.A. 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. In 2011, Versace and H&M released a new line of
Boteanu Alexandru
Simion Elena
Șuteu Mihaela
Vălimăreanu Simona
Anul II, Seria I, LMA-Germană
clothing that would be sold in H&M stores. The store sold both men's and women's clothing and
some home items such as pillows and blankets.

The most similar brand would be Dolce&Gabbana, a luxury Italian fashion

house[1] founded in 1985 in Legnano by Italian designers Domenico Dolce and Stefano
Gabbana. Christian Dior (21 January 1905 – 24 October 1957) was a French fashion designer,
best known as the founder of one of the world's top fashion houses, also called Christian Dior,
which is now owned by Groupe Arnault.

Versace is looking to reach young, tech-savvy consumers with their latest digital
marketing campaign promoting the new Versus product launch. Versace’s focus has been on
creating a full digital experience surrounding the Versus line. This strategy incorporates social
media marketing, a new website, and an online store experience. The digital campaign was
designed to raise awareness and to hype up the launch of their new collection on May 15th in
New York. The Versus line, which originally started in 1989, re-launched in 2009 after a four-
year break. In November 2012, Versace took to social media to announce that the new line would
be designed by J.W. Anderson. Looking to target a younger consumer audience, their social
media strategy includes Facebook, Twitter, Instagram and Google+ profiles for Versus. Until all
of the new social profiles are established, Versace has been posting teaser product images and
incorporating the hashtag #NewVersus across their existing social media channels as well as
the Versus Facebook page. Versace is encouraging consumers to join their Versus community
and they plan to provide fans and followers with behind-the-scenes looks at the creative process
and the design concepting for the new collection. Knowing their target audience has helped
Versace create a strategy that lines up with their consumers’ digital habits

Versace reported a decline in annual revenue during the last few years which is a matter
of concern for the Fashion Brand which is globally one of the best brands and has carved a niche
for itself in the Fashion World. Versace's Annual Sales Revenue for 2010 has reported decreased
by 19 per cent with losses widening to 41 million pounds. Losses before interest, taxes,
depreciation and amortization added up to1.87 million pounds. Giangiacomo Ferraris, ceo of
Gianni Versace SpA, credited the losses to diminishing B2C (Business to Consumer) relationship
of the Business house with its clientele globally and it is strongly felt that there is an urgent need
to bring about an improvisation in the Business-Consumer relationship for rectification of the
current state of affairs in terms of profitability. The International Fashion Industry is extremely
competitive and the need to improvise by way of introduction of new strategies is necessary to
sustain and achieve simultaneous growth in the market as stated by Akbar (2010)
Boteanu Alexandru
Simion Elena
Șuteu Mihaela
Vălimăreanu Simona
Anul II, Seria I, LMA-Germană
The introduction of eco-friendly initiatives is believed to improve B2B (Business to
Business) and resolve the diminishing profits as it is an innovative strategy to be employed by a
fashion brand. This provides an opportunity for the brand to contribute to environmental
conservation and spread awareness for the same. The motivation of this research is also to know
if eco-friendly technology would prove to be a boon to Versace in terms of higher profit. If so to
understand and analyze critically how and why their clients are willing to pay a higher price in
order to avail eco-friendly services. Is it solely to contribute to the environment or is the eco-
friendly technology and its usage a trend or both? This research would make provision for
providing justifications and solutions to several aspects of the incorporation of eco-friendly
technology by Versace.

The merging of fashion and music cultures quickly translated into the now common
practice of seating celebrities in the front row of fashion shows, giving credibility to the fashion
labels in the minds of consumers. Becoming a celebrity himself through this practice, Gianni
Versace went on to dress some of the world’s most distinguished people of his time, including
Princess Diana of Wales. Versace’s celebrity also helped to establish the celebrity of others,
launching the careers of “supermodels” like Naomi Campbell, Cindy Crawford, and Christy
Turlington. Actress Elizabeth Hurley was virtually unknown before wearing the now famous
“Safety Pin Dress” when she accompanied Hugh Grant at the premiere of Four Weddings and a
Funeral in 1994.

Today, Versace is a household name. The star power of both Gianni and Donatella
Versace has translated into infusion of the Versace brand and style into music and entertainment
media, appealing especially to young and urban audiences. Lady Gaga, an admitted muse of
Donatella Versace, modeled for the brand in spring of 2014, and released an upbeat song called,
“Donatella”, homage to the fashion icon and style mentor.