More accessories equal more made in Italy. Capri Holdings didn’t hide the fact that it plans on growing thanks to accessories, the same category that allowed Michael Kors to become a giant. Accessories (handbags and footwear mostly), that Versace and Jimmy Choo make in Italy thanks to a web of suppliers and external manufacturers that they own.
More made in Italy
The goal of the US-based group is that of increasing the weight of accessories and footwear in the total revenue. For Versace, that would mean bringing them from the current 35% (according to the results posted on March 2020), to 60%, Jimmy Choo would have to go from the current 20% to 50%. Capri Holdings explained the mentioned objectives in its annual report, where it also showcases the supply chains of each brand.
Versace centrally manages the wide majority of its products. All raw materials purchased go to the warehouse in Novara to then be shipped to third-party manufacturers. Most of production is done in Italy. The remaining goods are made in Tunisia, Europe, and in small part, in Asia.
Most of Jimmy Choo’s products are also made in Italy. Some supporting activities are done in European plants, while a little comes from Asia. The brand has a site to develop products in Florence. At the end of 2019, Jimmy Choo bought footwear manufacturer Alberto Gozzi which, wrote Capri Holdings, “in the near future will be mainly responsible for the development and production of shoes branded Jimmy Choo”.
Very little Italy, on the other hand, is found inside Michael Kors’ supply chain: the brand prefers Asia. Third-party manufacturers are also responsible for the purchasing of raw material. Beside from the wide web of suppliers, the brand also uses agents that directly buy finished products. The annual report confirms it: “Almost all Michael Kors’ products are manufactured in Asia”.
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