“House Of Versace”

How to build one of the most famous fashion empires. Explorer vc.ru studied the history of the fashion house Gianni Versace, founded in 1978, the famous fashion designer Gianni Versace and passed the way from small local brand to one of the most famous in the world. Gianni Versace with great difficulty survived the death of its founder, but eventually regained the position in the market and is now planning an IPO.

Today, the brand Versace opens a wide range of products ranging from collections of womens and mens clothes to towels and kitchen tiles. The fashion house was created by one of the most influential fashion designers — Gianni Versace – and the initial success and world fame owes exclusively to its founder.

Gianni Versace was born in the Italian city of Reggio Calabria in 1946. His parents, Antonio and Francesca were middle-class people. Father sold electrical appliances and his mother owned a small shop-Atelier of Francesca Versace Elle. Gianni ROS is not the only child in the family.

He was the elder brother Santo and younger sister Donatella, another sister Tina died at the age of ten. The family lived comfortably, in post-war Italy from Gianni had a pretty quiet childhood. At that time, Versace is interested in the world of clothing. He willingly helped his mother in the Studio, doing different tasks, ranging from the work of the courier to helping in the selection of fabrics.

His first dress he created in nine years. His other hobby was drawing party dresses for famous Actresses of the time. Parents Gianni was summoned to school because of the strange Hobbies their son, but the boy is not affected.

Versace was not a successful student, he was often described as a loner, absorbed by the world of fashion and fully focused on sewing. In the family, he also was not understood – aspirations of the parents fully embodied only Santo. Left to himself, Gianni had the opportunity to develop in an interesting direction.

In the Studio he got the basics of the skills needed for a future designer. Another passion of Gianni was the visit to the ancient ruins. They inspired future fashion designer, and later became a key theme in the design of his clothes. In 18 years of Versace by job mother began attending fashion shows to keep track of new trends.

School Versace graduated with great difficulty and a certificate received only through parental patronage. It was planned that Gianni will go to study architecture in Rome. The parent will, he did not resist, but for a long time at the University is not delayed.

According to one version, he dropped out of the University itself, on the other hand had changed from his mother Francesca, who returned it to Reggio di Calabria. Gianni continued to work in the Atelier of his mother, where he became her chief assistant. He was involved in almost everything, starting with the creation of dresses, ending with a visit to the shows in London, Milan, Paris and Rome.

His first collection of Versace has made in 22 years, it was sold in the Studio. The work of Gianni allowed him to Express themselves. Soon his name became known in the fashion center of Italy — Milan.

In February 1972, Gianni asked Salvatore Chiodini and Ezio Nicosia, owning the production of clothing Florentine Flowers. They urgently needed a summer collection and decided that Gianni can help them. Versace went to Milan and went to work.

His collection became popular, he earned the order of 4 million Lira and got a Volkswagen convertible. He continued his collaboration with Florentine Flowers and soon released fall and winter collection. At the same time Gianni started working with other brands. Among them was Santa Margherita, Genny, Callaghan and Complice.

In the past it had the label Complice by Versace. He in 1974 he designed a collection made of leather. In 1976 in Milan came brother Gianni Santo, which has already received a degree in business administration. After talking, the brothers decided to found his own fashion house.

Gianni had to take up collections, and Santo financial part. In 1977, the brothers joined their sister Donatella, who took the position of PR Director. Official date of creation Gianni Versace is considered to be 1978. Despite the formal separation of powers, Gianni Versace oversaw all processes of the fashion house.

The emblem became the Gianni Versace Medusa Rondanini – statue of the head of the Gorgon Medusa as a beautiful young woman with hair of snakes. Chose it myself Gianni. In his opinion.

“The Medusa symbolizes the beauty and the fatal spell of the ancient Greek classics — both in art and in philosophy. It is the synthesis of beauty and simplicity, which literally paralyzes, and even hypnotizing”. In the same 1978 was presented the first collection of Versace, has won positive evaluation and is still considered one of the best in creativity of the designer. It is distinguished by the presence of deep cleavage and short skirts.

A successful start enabled Versace to develop much more active than expected at first. In 1979 he opened the first Versace boutique in Milan in Via della Spiga. In the same year he released the debut mens collection. At the same time launched the first advertising campaign of Versace.

Especially for her, he agreed to cooperate with the legendary photographer Richard Avedon. The approach paid for itself and the campaign created a furor. Versace was a specialist not only in fashion, but also in its demonstration. He knew how to turn their show into a real show and not skimp on talented models.

He offered them long-term contracts and was willing to pay the fees in two or three times more. While competitors have used no more than four top models, Versace did 16 performances from leading stars of the fashion business. In the preparation of the films were choreographers, and on the stage played out these theatrical performances with musicians. The shows of Versace became the main news for Newspapers, and the name of the designer quickly became known not only in Italy but all over the world.

Gianni Versace had an impact on career success a number of famous models — Naomi Campbell, Claudia Schiffer, Linda Evangelista and other. Versace is one of the first who began to use the term “supermodel”. Sometimes the designer is called by the author of this concept, but in reality it appeared much earlier.

According to Versace, the fashion is capricious and extravagant. His views he embodied in the collections that violate the canons and customs of. Versace was a supporter of Italian style neo-Baroque. In his collections combined a passion for contrasts and excesses, the combination of different styles and kitsch.

Versace style was frequently criticized. In London, he was considered vulgar, and Armani accused the fashion designer that he turns high fashion porn show. He also claimed that Gianni apparel is made for girls of easy behaviour.

Contrary to public opinion, Versace was able to find your audience and by the end of 80-ies of his outfits worn by celebrities from around the world. In 1982, he was awarded the “Locchio doro” for womens collection fall winter. It was introduced by the famous “metal clothing” Versace. But it had a significant drawback — a large weight that was acceptable for women collection.

With the support of German experts, Gianni started creating a new material. The process took several months and resulted in Orton — knit, made with aluminum alloy and brass.

In 1981, Versace launched its own perfume line. He began with the womens fragrance, received the same name Gianni Versace. Mens fragrance Versace Lhomme appeared in 1986.

In the 1980s, fascinated by art, Gianni began working with the Opera theatre La Scala. Versace created the costumes for Opera and ballet performances, which attracted even more attention and adverted theatre. For his part, the designer was awarded the “Silver mask”.

In the mid 80-ies of Versace released the famous double-breasted crimson jacket. In the 90 years he became widely known in the CIS, becoming a part of the satirical image of “new Russian”. In 1988, Versace opened its first boutique in Madrid (Spain) to the building area of 600 square meters. The approach to international integration, the chosen one, Gianni Versace was to open company-owned and franchised boutiques.

Interesting markets for the brand in the early 80-ies of the steel Europe and Asia. In the mid 90-ies of Asia provided 25% of sales fashion house. In the 80s, Gianni Versace has started a wide diversification of the companys products. He realized that to buy a dress for $15 thousand can not afford it, but to own things like a lot of Versace.

Was soon released wide variety of accessories with the logo of Versace. Scarves, umbrellas, glasses, jewelry, watches and more. Produced by licensees of the company. In 1985 he launched the Istante collection of clothes.

It worked together with Gianni Damico, Donatella Versace and. Istante has become not only a separate brand, but was allocated as a subsidiary company of Versace. In the 80-ies Versace started the integration and the US market. The first shop was in the vicinity of Miami in 1981.

In 1989, he has created costumes for the Opera in San Francisco and also for the TV series “Miami Vice. The Vice”. The most notable event in the history of the brand in 1989 became the first womens couture collection from Atelier Versace. Its an expensive issue was considered a huge risk that the company supported not all.

Quit many of the members of the Finance Department, but it did not affect the decision of Gianni. Contrary to fears, the couture collection was a success, and it only strengthened the position Versace. At the same time Gianni started to market hours. The first collection was released in 1989 and was named Atelier Versace.

Concerns about the technological development has not been confirmed — watch was considered an excellent combination of quality and style. They are in demand in many European countries and the United States. This led to the establishment of specialized shops of watches and jewelry in different countries. In 1989 he was presented to young Versus Versace collection.

Doing it completely Donatella and Gianni only controlled the process. In the mid 90-ies of this line has already generated 10% of sales. In the same year the companys revenue amounted to 158 billion lire and a net profit of 7.6 billion liras. Financial performance has enabled Gianni Versace in the 90-ies of focus on creativity, it is not worrying about profit.

In the early 90-ies of the Versace gown wore by Princess Diana. Gianni and lady Di quickly became close friends. In 1992, Versace opened a shop in London on bond street. It cost the company $6 million.

For the store opening Versace invited and Diana, but she refused on the advice of friends. Diana visited him during the lunch break and praised individual elements of the collection. In response, Gianni decided to donate almost the entire collection of Diana. The Princess of Wales did not like the obsession of the designer, and sent items were sent back.

Versace apologized in writing and sent Diana a collection of candles and Soaps with the scent of Lily of the valley. The latter was the favorite flower of Diana, and she accepted the apology. Gianni gradually became one of the favourite designers of Diana, although for her he had to make some clothing changes.

Versace could be advertised using celebrities. Widely known case with Elizabeth Hurley in 1994. The actress wanted to appear at the premiere of “Four weddings and a funeral” in a Versace dress, but couldnt afford it. After learning about her desire, Gianni chose a dress to your taste and sent Hurley as a gift.

Story and photos actress in black dress became known worldwide, and the company was excellent advertising. In 1991, the company acquired a line for fat women – Versalite. In addition, there were models of suits with a leopard colors and pleated mini skirt. In the same year there was a line of casual clothes — Versace Jeans Couture.

In 1992 the line was launched hours Medusa. As in clothing, Gianni Versace continued to combine the collection of watches of different styles including classic and futurism.

In 1993 there was a line of Versace Home Signature. It included dishes, rugs, bedding and other items. In 1995 launched a new advertising campaign for which the role of Adam and eve posed for Sylvester Stallone and Claudia Schiffer. In 1993, Gianni was diagnosed with cancer.

But even in the period of treatment he continued to work. In 1994, Gianni has released a collection of jewelry Verscace — Atelier. Soon the companys product range was supplemented by the introduction in Europe of the highly competitive range of Versace cosmetics Make-Up. By 1996, Versace overcame the disease.

Active expansion of the company drew the attention of analysts. Mostly they spoke of production and management flexibility Versace. Experts have said that the management usually makes decisions with lightning speed, for industry where styles and fads change overnight, is a competitive advantage. In 1994, Europe remained the companys largest market, which accounted for half of annual revenue.

In the same year, Santo and Gianni Versace have announced that they are going to make the US their primary export market and to increase the level of sales to 30% (in North America accounted for 20%). To achieve this goal they were going through the establishment of subsidiaries in the US and open a nine-storey boutique in new York. In the 90-ies the company entered IPO. To him, the company started to prepare even in 1986, when they opened their books to the public and hired an outside company to audit.

In 1997 Gianni Versace was full of enthusiasm, and through the press stated that he hoped the popularity of the stake in Versace, is comparable with the demand for clothing collection. To take the company going on the new York stock exchange. In the same year Versace detached family property in the amount of $86.9 million, which included works of art and luxury home.

But Versace had a number of problems, including reputational. Management of the company was attributed to ties with the mafia. In 1997, Santo Versace was found guilty of bribing two tax inspectors. He protested and appealed, but the reputation has already been dealt a blow.

In 1996, four months have been robbed of six European boutiques for a total amount of $320 thousand. Products Versace has become a very popular target for theft. The other extreme was the release fakes with the logo of the company, which had a negative impact on sales.

The IPO plans had to be abandoned. Gianni Versace loved a life of luxury. Excellent earning and being a world-famous fashion designer, hes a little tightness. He owned real estate, collected art, traveled, and made expensive parties.

In the last years of his life the official residence of Gianni was considered Casa Casuarina in Miami. The fashion designer bought it in 1992 for $2.95 million, and then attached to the house and even the adjacent Revere Hotel, bought for $3.7 million. Versace invested in repairs $32 million, completed construction of the South wing, and also added to the landscape of the pool and garden.

Gianni turned Casa Casuarina into a work of art. The interior of the Villa included a mosaic with patches of gold, a well-known art masterpieces, and much more. In his time in Casa Casuarina managed to stay a celebrity. Among them Madonna, who was one of the judges of talent Versace.

When the life of Versace was a lot of speculation. One speculation was the Versace connection with the Italian mafia. In the scandal hit several Italian fashion houses. It was believed that with their help, mafia money launderers.

Gianni even pleaded with the British newspaper the Independent on Sunday who started this rumor in 1994. It took about a year to refute the charges. Independent had to pay 100 thousand pounds compensation and a formal apology.

The designer has never hidden his sexual orientation. It has also spawned a large number of rumors and guesses. Many discussed that Gianni met her future husband of his sister — Paul Beck. The last became the reason of family quarrels when Back replaced Gianni to Donatella, the fashion designer did not communicate with his sister the year. Gianni companion was Antonio Damico.

He ran a chain of stores of Versace Istane, as well as develop a sports collection. Probably sexual orientation was one of the reasons for the murder of fashion designer in 1997. Gianni Versace was murdered in front of his Villa in Miami by serial killer Andrew Cunanan. The latter committed suicide during the arrest.

According to one version, the note Cunanan reported that killed Versace because of the fact that the designer was the flag of the international LGBT community. On the other — there was no note at all. Referred to other versions of the murder of fashion designer. On one of them, behind Versace murder was mafia.

Gianni allegedly owed a large sum, and was killed for it. This version is confirmed in his book “Metastasis” former mobster Giuseppe Di Bella. He also alleges that Versace was being used by Paolo De Stefano to launder money. The Versace family in response to a similar version filed for Di Bella to the court.

The third version of the murder of Gianni Versace blames his family. However, it was built on guesses and assumptions about internal conflicts. There is no official arguments, Gianni never oppressed their relatives, and given the difficulties faced by Versace after the assassination of the designer, this version looks even more fantastic. At the time of death as the Versace was $1.4 billion.

Its share in the company Gianni bequeathed to his niece Allegra, daughter of Donatella. Allegra owned 50% of the company, Santo 30 percent, and Donatella 20 percent. The press unanimously agreed that Gianni Versace was killed at the height of his career. Collection the fashion designer presented a month before his death, called one of the strongest over the last few years.

Fans of Versace was shocked with this news. At the same time, many began to doubt the future of the brand Versace, has lost its chief Creator. However, despite the fact that Gianni himself had created the collection, and its development would bring 45% of the companys profits, he managed to assemble a strong team of designers headed by Donatella.

During the period of treatment Gianni she performed part of the duties of brother, and therefore had the experience of performing the functions assigned to him. Now she took over as creative Director, and she began to determine the future of the fashion house. Santo Versace had served as Chairman and CEO of the company. At the end of 1997, sales of Versace amounted to $550 million.

The figure was a record, but it obviously provoked the murder of Gianni Versace. In the future, due to the legacy of the founder of the Versace brand could develop. The process of leadership change is not painless, and the first collection of Donatella perceived by the public cool. This, in turn, led to falling sales and increased rumors about the controversial prospects of the fashion house.

The first couture collection Donatella has failed, and its already precarious situation intensified gossip about his involvement in the murder of his brother and my daughters illness. Versace had yet to achieve a ban on publication of numerous biographies of Gianni, which sometimes unflattering and even scandalously spoke about the designer and his family. Between 1998 and 2001, the company spent more than it earned.

Come down to the fact that the funds began to generate selling the property, owned by Gianni and 25 works by Picasso from his collection. The responsibility for the failure were attributed to Donatella, who oversaw the new design and could not move away from the typical projects that have characterized the Versace in the 90-ies. Many wrote that it is not endowed with the genius of Gianni and not be able to return to its former glory Versace. The collection Donatella was seen as an attempt to imitate her brother.

In 2000, Versace entered the hotel business. The first hotel called Palazzo Versace opened on Australias Gold Coast. In the same year, brand sales have grown at the expense of Jennifer Lopez wearing Versace dress to the Grammy ceremony.

In 2002, the companys sales decreased by 4.1 million pounds. At the same time there were rumors about the restructuring undertaken in the company, but management changes are not covered. Family Versace was accused of covering up problems, not only from the world but within the company.

The situation was complicated by a decrease in the popularity of the brand products from celebrities. This was influenced by rumors of drug addiction of Donatella Versace. In 2004, they confirmed — there are reports that Versace undergoing treatment for drug addiction.

By the end of 2002 Donatella partially corrected the situation. Presented at the fashion week in Milan the collection received a positive assessment. Critics recognized that it was fully consistent with the style of Versace, combining eroticism, luxury, and challenge. A new model supplemented by own ideas of Donatella, including high jagged hem.

In 2004 Versace made another reorganization. The part of the distributors refused products. At Versace debt in the amount of $143,8 million. Couture collection company was closed. It was followed by a collection of Versus.

Licenses for the manufacture of watches, perfumes and other accessories were sold. In the same year the CEO of the company was Giancarlo di Risio. His leadership was marked by a number of effective solutions that allowed the company to restore the situation. The range of products continued to decline, and the feedback about the collections remained controversial.

In 2005 there was a license Versace Collection, which replaced Versace Classic. It was directed at a younger audience and were more loyal to price, available to different segments of the population. In the same year Versace got rid of two of their collections — Versace Intensive and Versace Young.

In 2005, the face of the collection for the company was Madonna as a long-time fan of the brand. For it the singer received a fee of $10.5 million and the exclusive right to receive free Versace clothes for two years. In 2006, the face of the brand became the Halle berry. In the same year began a collaboration Versace and Lamborghini.

The result was the creation of the Lamborghini Murciélago LP 640 Roadster Versace and the limited edition is a mens accessories in 2008. In 2006, after several years of work at a loss Versace made a profit of $19.1 million. After a year, sales increased by 30%, and the debt of the company in 2005, amounting to €1.5 million, have become assets in the amount of €11.3 million. Were the successes and Donatella.

Her womens collection, which appeared in September 2007, has received positive reviews. Changed approach to work Versace and other destinations. For accessories in 2005 accounted for 4% of the total sales of the company, and in 2008 this figure was 40%.

In 2000-e years the company began to develop not only as a clothing brand, but also as a producer of luxury in General. The company has been doing interiors for cars, yachts, planes and helicopters. Versace Home has grown to include furniture, tableware, Wallpaper, and decorative tiles and much more.

In 2008, the global crisis, which for Versace could be a disaster. In 2009, Di Risio left resignation. There are formal and informal versions of the reasons of this decision. The first is that the resignation of Di Risio was part of the anti-crisis plan Versace.

According to the unofficial version — the CEO didnt see eye to eye with Donatella Versace. The new CEO of the company was Gian Giacomo Ferraris. Prior to that, he has worked with several fashion brands, and it has responsibility to restore the company. At the time of the arrival of the Ferraris, the company had debts amounting to almost €80 million.

Ferraris began large-scale restructuring and layoffs 25% of employees (about 350 people). None of them was working on the new collections. Ferraris has promised that in 2011 Versace will again become profitable. According to the results of 2009 the company suffered an operating loss in the amount of €49.6 million, and its revenue fell to €268 million.

In 2009, was revived Versus line. One of the important directions of development of the company steel accessories. In 2010, they accounted for 35-40% of sales. Ferraris intended to increase this figure to 50%.

It primarily was about the range of hours, which was supplemented by models for young people. It was a logical step, complementing the range Versus. In this sphere the company entered into a licensing agreement with Timex, and the responsibility for design rests on Donatella Versace. The average cost hours Versus was €200.

Were announced plans to increase the number of specialized shops watch and jewelry brand. Taken by Terrorism changes on all aspects of the work of Versace, starting from the fashion collections and ending with shops and raising capital.

A fashionable line of the company was reduced to five collections — Haute couture, Atelier Versace, Versus youth, clothing for mass production Versace, casual clothing Versace Jeans Couture and Versace Collection. In 2011, Donatella Versace helped to improve the situation of Versace as a brand, presenting successful womens collection. This time the designer was finally able to get out of the shadow of his brother. In the collection stood out traits of style Donatella exclusively, such as extravagance and femininity.

In the same year was presented the first boutique, designed in the new concept. It was opened in Beijing. The design was developed by Donatella Versace and English architect Jamie Roberton and combines luxury and traditional architectural features of the Italian energy Versace.

The boutique in Beijing was located in the shopping center Sanlitun North Village. The total area of the store was 500 square meters. The first floor was covered with specially imported from Italy tiles, which had previously been part of one of the Roman churches.

In the same year, in the framework of cooperation between the brands were presented the first capsule collection for men and women Versace for H&M. It included garments cost from $17,95 to $299. A year later came a second collection.

At the 2011 Ferraris, the promise became a reality — the company after three years returned to profitability, earning €8.5 million. In 2012 the company invested in development in China, Malaysia, USA, Brazil, Europe, Hong Kong. Was presented new beachwear and underwear collections, couture and Atelier Versace Young Versace, designed for babies.

One of the main innovations was the launch of the website for e-Commerce versace.com. After it was announced plans for further development, including the launch in most countries of the world, the creation of targeted microsites and applications launch.

In 2015, e-Commerce accounted for only 2% of direct sales companies. However, Versace also works in partnership with other marketplaces, so this figure is slightly higher. In the same year launched a collection of exclusive jewelry Atelier Versace Haute Joaillerie. The contained items are handmade and exclusively made to order. Collection produce the companys partners in Dubai.

In 2013 the company continued to open stores, where to 2014, there were 137. The profit of the company grew by 27.6%, and sales reached €479,2 million. The most growing market of the company became the United States.

At the same time, Ferraris have decided that the company needs to raise funds from outside. To search for a potential partner, he turned to Goldman Sachs and Intesa. The best option was Blackstone Group, which bought 20% of the company for €210 million. The deal was completed in 2014.

In the same year the company opened 40 boutiques. Versace has introduced several successful collections and ended the year with the familiar financial growth. The profit of the company grew by 27% to €26.3 million. The success of the Versace allow its shareholders and management to think about the previously planned IPO.

The Versace family has long been committed to outlet Versace on the stock exchange, but considers it imperative to retain full control over the company. In 2016, it opened another Palazzo Versace hotel – this time in Dubai. He, like the Australian, like the Palace and the known presence of beach with refrigerated sand. In 2017 we plan to open another Palazzo Versace in Macau.

In 2015 was announced, a joint project of real estate developer Damac and Versace in the construction of multistory residential complex AYKON Nine Elms in London. Versace takes on the interior design of the building. Construction is scheduled for completion by 2020.

Up to this point companies have had to collaborate. One of the most famous of their projects is Damac Tower in Beirut. By 2016, running Versace was already 200 stores. With plans to increase this figure further, to be able to withstand the competition.

In 2016, the unexpected news was the resignation of Ferraris. The reason for this former CEO of the company did not give. One reason for this decision was the forecast of Ferraris relatively lower sales growth. It is associated with a decrease in tourist traffic in major European cities, which has suffered security problems and unstable demand for the products of Versace.

The new CEO was Jonathan Akeroyd, formerly head of brand Alexander McQueen. In 2016 within the strategy of the companys planned investment of €50 million for the development of e-Commerce and network of the company. It is expected that the key focus of the new Director General will be preparing for an IPO.

Leave a Reply