Capri Holdings may have to let go of its image as a luxury fashion house and bank on mid-tier pricing as well as a partnership with Amazon.com for its Michael Kors brand following its $1.4 billion sale of Versace to Prada.

After Italy’s Prada struck a deal to buy smaller rival Versace on Thursday, Capri CEO John Idol said that the company could make “accelerated strategic investments” in Michael Kors, the clothing and accessories brand it still holds in addition to footwear brand Jimmy Choo.

Capri had been exploring alternatives for both Versace and Jimmy Choo after the $8.5 billion sale of Capri to peer and Coach-owner Tapestry fell apart in November. Sources viewed a deal for Jimmy Choo as more tricky given consumers have been favouring sneakers and more casual shoes over high heels.

Meanwhile, in a rare move for a luxury brand and a signal that Capri is putting less emphasis on an upscale image for Michael Kors, Capri in March launched its first official Amazon storefront for the brand, allowing shoppers to buy handbags, clothing and accessories.

“Michael Kors’ availability on Amazon marks a significant shift – and not necessarily in the direction of luxury,” said Angeli Gianchandani, adjunct instructor at New York University’s School of Professional Studies. “While it may help drive volume and reach a broader audience, it also risks further diluting the brand’s prestige.”

Michael Kors handbags at its retail outlet and website are priced from under $50 to more than $3,000 while on Amazon its purses and bags are sold for anywhere between $59 and $400.

“(Amazon’s) a great outlet for these companies to get rid of excess inventory, especially from the higher end markdowns,” said Jamie Meyers, Securities Analyst at Laffer Tengler Investments. “So, it’s certainly a move that makes perfect sense.”

Capri has also said it is reviewing pricing across categories to try to boost full-price sales.
The attempt to revive growth could, however, take a hit from U.S. President Donald Trump’s tariffs as nearly all Michael Kors products are made in Asia, according to Capri’s annual report last May, although it did not specify individual countries.

Jimmy Choo products are produced by specialists in Italy, supported by factories across Europe, with a small portion produced in Asia, according to the report.

During a post-earnings call in February, Idol said that Capri had attempted to elevate Michael Kors’ price points too quickly and going forward it would refocus on the heritage of the brand and align pricing architecture with historical levels.

Michael Kors bought Versace for $2.2 billion in 2018 and named the group Capri, in a bid to take on larger European rivals such as Louis Vuitton-owner LVMH and Kering and widen its customer base. It acquired Jimmy Choo, whose shoes retail for as much as $5,000, the previous year.

Capri has posted nearly ten quarters of revenue declines and lost out to local competition from Coach as it struggled to convince shoppers higher prices were worth paying.

“The bottom line is Prada is a luxury company and Capri is not, in a sense, because Michael Kors is not really a luxury brand,” Morningstar analyst David Swartz said. “It was not a great fit because Michael Kors is a primarily American mid-tier handbag maker.”

News Credits- FASHION NETWORK

Prada S.p.A. on Thursday announced that it has entered into a definitive agreement to acquire 100% of Versace from Capri Holdings, completing a negotiation that had lasted just a few months.

The cash consideration, based on an Enterprise Value of €1.25 billion, is subject to adjustments at closing. However, the sticker price is also significantly less than the €1.83 billion Capri paid to buy Versace back in 2018.

Founded in 1978 in Milan, Versace is one of the leading international fashion design houses and epitome of Italian luxury worldwide. Building on a remarkable brand awareness, Versace stands as a distinctive asset in the luxury landscape. Deeply rooted in the history of fashion, the brand displays strong potential to read contemporaneity and marked sensibility in capturing and anticipating the spirit of today’s and future society, Prada stressed in a release.

“We are delighted to welcome Versace to the Prada Group and to build a new chapter for a brand with which we share a strong commitment to creativity, craftmanship and heritage. We aim to continue Versace’s legacy celebrating and re-interpreting its bold and timeless aesthetic; at the same time, we will provide it with a strong platform, reinforced by years of ongoing investments and rooted in longstanding relationships. Our organization is ready and well positioned to write a new page in Versace’s history, drawing on the Group’s values while continuing to execute with confidence and rigorous focus,” said Patrizio Bertelli, Prada Group Chairman and Executive Director.

The deal comes three weeks after Capri announced that Donatella Versace, sister of founder Gianni Versace, had stepped down as the house’s creative director to become its ambassador. She was replaced by Dario Vitale, formerly the design director of Miu Miu, the fastest growing label in the Prada group.

With its highly recognizable aesthetic, the brand constitutes a strongly complementary addition to the Prada Group’s portfolio and displays significant untapped growth potential leveraging multiple value creation levers, Prada noted.

Within the Prada Group, Versace will maintain its creative DNA and cultural authenticity, while benefitting from the full strength of the Group’s consolidated platform, including industrial capabilities, retail execution and operational expertise.

“The acquisition of Versace marks another step in the evolutionary journey of our Group, adding a new dimension, different and complementary. The Group’s infrastructure is strong, we have verticalized our brands’ organizations and reinforced our routines and processes. We feel ready to open this new chapter. Versace has huge potential. The journey will be long and will require disciplined execution and patience. The evolution of a brand always needs time and constant focus. I would like to thank Capri Holdings for having preserved and enhanced the heritage of this wonderful brand. Notwithstanding the sector uncertainties, we look at the future with confidence, focused on a long-term strategic vision,” added Andrea Guerra, Group Chief Executive Officer.

Author Credits- Godfrey Deeny, FASHION NETWORK

Zouk, a handcrafted direct-to-consumer lifestyle brand has partnered with Unicommerce and Shipway to strengthen its e-commerce operations across categories like bags, luggage, and accessories.

With these partnerships, Zouk aims to improve its online inventory management, logistics efficiency, and delivery capabilities across India.

Unicommerce warehouse inventory management solution will help Zouk streamline order processing, optimise inventory allocation and tracking while Shipway will help in automated courier selection.

Commenting on the partnership, Kapil Makhija, managing director CEO of Unicommerce in a statement said, “Unicommerce is a one-stop shop for all e-commerce enablement technology needs. We are delighted to partner with Zouk to power their e-commerce operations and help them leverage technology to scale and optimize their online presence.”

Pradeep Krishnakumar, co-founder of Zouk added, “At Zouk, delivering a seamless and consistent consumer experience is at the heart of everything we do. Partnering with Unicommerce and Shipway has enabled us to strengthen our operations so that every order, whether from a metro or a remote town, is fulfilled smoothly and efficiently.”

Founded in 2016, Zouk operates through its website, app, and leading marketplaces like Amazon, Flipkart, Myntra, Tata Cliq, and Nykaa, as well as quick-commerce platforms.

Author Credits- Maverick Martins, FASHION NETWORK

The global Dark Store Market is undergoing a transformative phase as e-commerce and logistics industries adapt to meet the rising demand for fast and efficient last-mile delivery solutions. With the market size valued at USD 16.54 billion in 2023, this innovative retail model is set to experience exceptional growth, expected to reach a staggering USD 414.31 billion by 2033, expanding at an impressive 38% compound annual growth rate (CAGR) over the next decade.

What is the Dark Store Concept?

A Dark Store refers to a retail space designed specifically for fulfilling online orders, rather than serving walk-in customers. These stores operate like distribution hubs where products are stored, picked, packed, and shipped to customers’ doorsteps. Unlike traditional brick-and-mortar stores, dark stores have no storefront and do not cater to in-person shoppers. This model significantly streamlines the supply chain by removing the need for a physical shopping experience, allowing retailers to prioritize faster delivery times and cost-effective operations.

Drivers Behind the Market Growth

Several factors are contributing to the rapid growth of the dark store market:

• E-commerce Boom: The accelerated shift toward online shopping has fueled the demand for efficient fulfillment centers. As consumers expect faster delivery times and greater product variety, dark stores have emerged as a cost-effective solution for retailers to handle high volumes of orders swiftly.
• Consumer Expectations for Speed: The modern consumer demands faster service, and dark stores meet this need by being strategically located to facilitate swift dispatch and deliveries. With the rise of rapid delivery services like instant grocery delivery, dark stores are pivotal in enabling these services, allowing for fulfillment times of hours rather than days.
• Reduced Operational Costs: Traditional brick-and-mortar stores come with significant overhead costs, including staffing, real estate, and utilities. Dark stores, by contrast, are optimized for online order fulfillment, significantly reducing operational expenses for retailers.
• Technological Advancements: The integration of technologies like AI-driven inventory management, automated picking systems, and robotics has enhanced the efficiency of dark stores. These technological solutions ensure quick and accurate order fulfillment, providing a competitive edge for businesses operating in this market.

Regional Insights: Dark Store Market Growth

• North America: North America leads the dark store market, driven by e-commerce giants like Amazon and Walmart. High urban populations and advanced logistics make it a key growth region, though operational costs are a challenge. The market is set to grow rapidly.
• Europe: Europe is seeing strong growth, particularly in the UK, Germany, and France. Urbanization and sustainability concerns boost dark store demand, but regulatory challenges may slow expansion. Overall, the region is poised for significant growth.
• Asia-Pacific: Asia-Pacific, especially China, India, and Japan, is growing rapidly due to e-commerce expansion and tech-savvy consumers. While logistics infrastructure is developing, the region offers immense potential for dark store adoption.
• Latin America: In Latin America, Brazil and Mexico are emerging as key markets. E-commerce growth and improved logistics infrastructure promise rapid dark store expansion, despite some economic challenges.
• Middle East & Africa: The Middle East and Africa are early adopters, with the UAE, Saudi Arabia, and South Africa leading. Urbanization and e-commerce growth are creating opportunities, but underdeveloped logistics networks pose challenges.

Key Players

• Amazon.com, Inc.
• Swiggy
• Uber
• Ola Foods
• Supermarket Grocery Supplies Pvt Ltd.
• Walmart, Inc.
• Target Brands, Inc
• Dunzo Daily
• Instacart
• Auchan
• Wolt
• Flipkart
• Grab

Recent Market Developments

• June 2022: Naturepro has introduced same-day delivery across India along with the opening of ZFW dark stores. Both brands have partnered to promote sustainable and affordable products.
• September 2022: Intacart has acquired Rosie to implement and use its technology in locally operated grocery spaces, expanding the customer base and distribution channels.
• Amazon India has signed MOUs with the Council of Handicraft Development Corporation (COHANDS) to promote the products under the Karigar program, which is an initiative that supports local craftsmen.

Dark Store Market by Category

By Age Group, Dark Store Market is Segmented as:

• Children
• Adults
• Elderly

By Category, Dark Store Market is Segmented as:

• Groceries
• Meat
• Dairy

By Delivery Options, Dark Store Market is Segmented as:

• Curbside Pickup
• In-Store Pickup
• Home Delivery

By Non-Food Products, Dark Store Market is Segmented as:

• Cleaning
• Essentials
• Bath & Body

By Region, the Dark store Market is Segmented as:

• North America
• Europe
• East Asia
• South Asia & Pacific
• Middle East and Africa(MEA)

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

Author Credits- Newstrail.com

Indian express parcel delivery company Delhivery has taken a controlling stake in its rival Ecom Express Limited for Rs~1,400 Cr. (US$162m) in a bid to expand its customer base and boost its e-commerce delivery market share.

Commenting on the deal, which was announced on April 5 and is subject to approval from the Competition Commission of India, Sahil Barua, MD and CEO of Delhivery said, “The Indian economy requires continuous improvements in cost efficiency, speed and reach of logistics. We believe this acquisition will enable us to service customers of both companies better, through continued bold investments in infrastructure, technology, network and people.

“The founders and management of Ecom Express have established a high-quality network and team, creating a strong foundation to integrate into Delhivery’s operations.”

K Satyanarayana, founder of Ecom Express, added, “Delhivery is among India’s leading fully-integrated logistics service providers with significant scale advantages and will be the ideal shareholder for Ecom Express’s next phase of growth.

“With this acquisition and its inherent synergies, businesses across India as well as the logistics industry itself will benefit immensely through the combination of two like-minded players.”

Author Credits – Hazel King, Parcel and postal technology INTERNATIONAL

The Securities and Exchange Board of India has given Bluestone Jewellery and Lifestyle the go-ahead to raise funds through an initial public offering. Having received Sebi’s final observation, Bluestone can take the next steps towards launching its IPO.

Bluestone’s planned IPO will comprise a mix of a fresh issue of shares up to Rs 1,000 crore and an offer for sale of up to approximately 2.4 crore equity shares, ET Tech reported. The business had filed its IPO papers with Sebi on December 11 last year.

For the offer for sale portion of the IPO, company shareholder Kalaari Capital Partners II LLC will sell off up to 70.7 lakh shares, the Economic Times reported. On top of that, shareholder Saama Capital II Limited will sell off up to 41 lakh shares and Sunil Kant Munjal and other Hero Enterprise Partner Ventures partners will sell off up to 40 lakh shares.

The business plans to use up to Rs 750 crore of the proceeds from its fresh share issue towards general corporate purposes and meeting its working capital requirements. As the offer is being carried out through a book-building process, no less than 75% of the net offer will be allocated to qualified institutional buyers, no more than 15% is allocated to non-institutional buyers, and no more than 10% is allocated to retail individual investors.

Bluestone Jewellery and Lifestyle established its Bluestone jewellery brand in 2011, specialising in gold, diamond, and platinum jewellery with numerous customisation options available, according to its website. The business retails from its direct to customer e-commerce store, mobile app, and network of exclusive brand outlets across India.

Author Credits- Isabelle Crossley, FASHION NETWORK

Swiggy Instamart, a quick commerce platform has launched an in-app feature called ‘Maxxsaver’ to boost sales by offering savings to customers on large orders.

With this feature, Instamart allows customers to save up to Rs 500 after reaching a certain order value. The feature will be applicable across all categories that include daily essentials, electronics, smartphones, fashion, beauty, among others.

Commenting on the launch, Amitesh Jha, CEO of Swiggy Instamart in a statement said, “As more users turn to Swiggy Instamart for daily essentials, electronics, fashion, and more, we remain committed to delivering exceptional value. With Maxxsaver, we enhance our promise to make Swiggy Instamart the most affordable and convenient quick commerce destination.”

“By passing on the benefits of larger orders, we’re able to offer better pricing to our users. Whether it’s a top-up or a weekly haul, users can effortlessly unlock maximum savings on every order,” he added.

Swiggy Instamart offers 10-minute deliveries in 100 Indian cities after recently adding 32 cities to its network.

Author Credits- Maverick Martins, FASHION NETWORK

As inflationary pressures and rising grocery prices affect consumer spending in Australia, high-value retail megastores are gaining popularity now more than ever.

Costco’s latest store opening in Ardeer, Melbourne, marks a significant milestone in the retailer’s continued expansion throughout Australia. The new location signifies Costco’s ongoing commitment to making a vast range of high-value products available to Australians. It now has 15 warehouses in the country and $4.4 billion in annual revenue.

The Ardeer warehouse officially opened on April 9, replacing the US-based company’s first Australian site in Docklands. Comprising 16,000 square metres of floor area and 760 car parking spaces, the new retail megastore boasts the largest Costco fuel station in Australia, a tyre centre, optical centre and hearing aid centre.

Focusing on community engagement, Costco’s country manager, Chris Tingman, highlighted the Melbourne suburb, located about 15km west of the city centre, as “dynamic and fast-growing”. He expressed confidence that Costco “can deliver exceptional value through a diverse range of products and services to the local community.”

Costco’s role in a challenging economic landscape

The Ardeer warehouse signals a crucial shift in Australia’s grocery and retail landscape as Costco adapts to current economic pressures and the rising cost of living.

“The great thing about Costco is the items that go to market globally are the cheapest out of all of the retailers. We range a limited number of items on a pallet and bring items to market [in] the most efficient way, and because we save on those costs, we’re able to pass those savings on to our members,” Costco Australia and New Zealand marketing and e-commerce director, Megan Belanger, told Inside Retail.

Enabling customers to buy in bulk, access exclusive deals and take advantage of competitive prices across a range of products is Costco’s manifesto. Despite rising costs and inflation in the current economic climate in Australia, Costco has maintained its pricing strategy and incentivised loyal members rather than increasing margins.

Belanger pointed out that the current market conditions present a significant opportunity for growth. “We’re seeing, firstly, really good growth in both our membership numbers and also our sales numbers, and I think that’s reflective of the value that we’re offering to our members,” she said.

“Instead of looking for ways to increase margins, we’re trying to find a way to bring even more value in savings to our members. The more we save, the more loyal our members are, and they’ll [continue to] shop with us,” she added.

Costco is the only subscription-based warehouse chain in Australia. Customers must pay an annual fee of $65 to shop there.

The “wow” factor: exclusive items for members

One of the highlights of the Ardeer store’s grand opening is the unique and exclusive range of “wow” items that are available to members.

“Whenever we open a new warehouse, we love to put some ‘wow’ items in, and they’re limited just to this warehouse and normally a short run. If you see it and you love it, you should buy it, because it won’t be around forever,” Belanger said.

The new Ardeer warehouse offers a range of products for Costco members exclusively, including a two-person infrared sauna, a Segway Go Kart, and an outdoor igloo. Products for food lovers include a 2kg pistachio cheesecake, a 15kg tub of ghee and a selection of premium liquor.

A growing demand for high-value purchases

The retailer is also growing its online presence, providing members with the convenience of shopping from home while maintaining the distinctive warehouse experience it’s known for. Costco recently sealed a partnership with DoorDash, aiming to enhance its online delivery services with on-demand capabilities.

“Our Costco members can have fresh fruit and groceries delivered to them via DoorDash, and will deliver up to 60 minutes from a warehouse location,” Belanger said.

Since launching an e-commerce site in 2020, Costco has offered members access to a wide range of products online, except for food, grocery and fresh produce, which aren’t available. However, Costco’s distinctive in-store shopping journey remains well-preserved.

“Our members love the idea of coming to the warehouse and seeing what’s new, going through the treasure hunt experience and seeing what’s here. Shopping at Costco really is that kind of day-out experience,” Belanger said.

Driven by distinctive product offerings, e-commerce innovations and an unwavering commitment to value, Costco appears uniquely positioned to thrive in the current retail landscape as it continues to grow its footprint.

Author Credits- Tahlia Whitfield, inside FMCG