Kohls will surely succeed w/ Vera as they did w/ Chaps & Daisy

Implications:     Relevant names but private label control will generate sure results for kohls in this new brand.  branded product created specifically for Kohls is like branded retail w/ a private label mentality of control.  This will be a huge success for Kohls and will follow other names as Chaps, and Daisy Fuentas which have been launched into kohls over the past few years 

Analysis:     This line of clothing will be a slam dunk for Kohls.  The trend for them and their competitors is to get branded private labels.  Kohls has lead the way for this in the past 2-3 years and is seeing the results for this as this is what turned the company around 3 years ago.  

    Their private label was old and not fresh.  It was a last year repeat business.  They decided to use brands that are brands in their consumers eyes to build this concept.  The 1st was Chaps.  This is controlled by warnaco and now is the vast majority of all the business Chaps does.  Kohls became their #1 account over night and is like a private label brand for Kohls.  It is branded retail but they are developing the line and all like private label

    The 2nd year they brought in Chaps ladies and it has been successful and this is controlled by Ralph.  This was the 2nd step for them

    The 3rd year they brought Daisy Fuentas line in and this is 100% exclusive to kohls.  This is owned and produced by Regatta USA which also produces Gloria Vanderbuilt, Metro 7 (exclusive for wal-mart) and other labels.  

    This 4th year they are introducing Vera Wang.  This is also from Regatta and exclusive for kohls.  This will follow in the same pattern.

    The over all  trend for them is to have names the consumer recognizes and relates to but they are exclusive to kohls.  this may be to develop new brands of take owns of existing brands.  but this is exclusive for kohls and their customers.  This is what will drive traffic for them into this fall and make them the destination for their customer.  They will sell these brands to them and then pick up all the peripheral business as well as the key is to make your store the destination when the customer thinks to shop.  In my opinion there is no way this strategy will fail.  JCPenny is following suit w/ their major launch of American Living in the spring which is from Ralph and will over all products from home, apparel, etc..  This will be their answer to the direction Kohls has been going.