Kohl's wins big while Vera Wang risks it all

Implications: Brilliant move by Kohl's to counter Macy's move to private label.  Perhaps not as brilliant a move by Vera Wang: risking their brand equity and traditional clientele.

Analysis:  The Vera Wang brand legitimizes Kohl's as a player in fashion and women's apparel. Assuming the product is attractive and assuming they hit the proper price points, this makes Kohl's a contender for the space Macy’s is trying to own.

The risk is missing the necessary price points and fashion to engage both the loyal Kohl’s customer and the traditional department store customer. Any movement upward must be incremental.

The traditional Macy's customer is likely going to find Kohl's appealing.  They execute low service at a high level.  Macy's, on the other hand, delivers low service as a result of their inability to execute.       

The only question is Vera Wang’s brand elasticity. The new revenue stream for Vera Wang has to offset the potential deterioration to the brand’s traditional clientele. Damage begins Saturday when a guest at the wedding asks “Darling, did you pick-up your Vera Wang gown at Kohl’s?”