Consumer Behaviour Case Study

The Changing Style: Versace's Veracity?

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Abstract:
Founded in 1978 as a small boutique in Milan, Versace grew over the years through Gianni's 'daring design innovations and clever publicity', clocking revenues of $533.8 million by 1997. However, with the murder of Gianni Versace in 1997, the company started witnessing declining sales, accumulating debts that touched £83 million by the end of 2003. However, under Giancarlo Di Risio, who was appointed as the new chief executive officer (CEO) in September 2004, Versace witnessed a 21% increase in retail sales in the first quarter of 2005. The company expects to break even by 2007.

Pedagogical Objectives:

• To understand the growth of Versace under Gianni
• To discuss the restructuring strategies adopted by his sister Donatella and the new CEO to revive Versace after the death of its founder.

Keywords : Gianni Versace; Donatella; Restructuring strategies; Italian; Corporate Strategies Case Study; fashion industry; Medusa logo; Apparel market; Family-run businesses; Design innovations; Advertising strategies; Richard Avedon; Competitive strategies of Versace; Entrepreneurship; Giancarlo Di Risio; Divestments of Versace products lines; Importance of customer research

Contents:

• Versace: The Beginnings
• Versace: The Inflection Points
• Versace: The Makeover