In this new video, L2 Head of Research Maureen Mullen speaks about the genius strategy of Michael Kors since it went public in December 2011. Since then, share prices have steadily increased from just over $20 per share to near $100 per share. Early on, Michael Kors built a relationship with young consumers by appearing on Project Runway. In 2009, 28.7% of the brands’ 400 million sales were done through direct-to-consumer online sales or brand stores. In 2012, 48.1% of its $1.3 billion sales were done through brand owned and operated stores.
Also remarkable about Michael Kors’ growth from a $400 million company to a $1.3 billion one, is that marketing costs did not explode in the process. Michael Kors reduced advertising in traditional channels such as television and print, and invested in social platforms. Michael Kors, the designer, has 2.07 million followers on Twitter, and has leveraged his success on television to make the brand name even more recognizable. The brand has built a video platform called “Living the Kors Life” and syndicated its content across all Michael Kors content channels.
Michael Kors has also become synonymous with Instagram. In October 2012, it launched an Instagram contest inviting users to share how they styled their Michael Kors watches with the hashtag #MKTimeless. In November of 2013, the brand ran the first Instagram sponsored post and added 34,000 new followers in 24 hours.