Michael Kors announced today that it would buy Jimmy Choo for nearly $1.2 billion, adding luxury shoes, handbags, and perfume to the Michael Kors portfolio. Though the two brands have similar core products, their target customers vary due to significant pricing differences, from masstige to pure luxury.
The recent acquisitions of Dior (by LVMH) and Kate Spade (by Coach) demonstrate that the fashion world is a buyer’s market. Of the acquired brands, only Dior increased its rank year over year in L2’s Digital IQ Index: Fashion, which ranks brands according to their digital competence. However, the acquirers rank higher: Coach scores third place, while Kate Spade is sixth, and Michael Kors, which ties with Kate Spade for sixth, surpasses Jimmy Choo’s rank of 19th.
L2’s study also indicates that while Jimmy Choo joins the Gifted category for digital marketing, social media, and mobile, the brand only retains the Average title for site and e-commerce. The brand has struggled with slow site speeds, as images render slowly, especially on grid pages. Slow site speeds and load times tie directly to bounce rates.
On the flip side, the brand is strong in merchandising and connecting content to commerce. Where most luxury brands display static images for lookbooks and recent collections, Jimmy Choo drives customers directly to the grid pages of its e-commerce product offerings—something Michael Kors does not do. Yet to reach the threshold of best-in-class, the brand will need to ensure that the site directly connects with consumers.