Simply Vera, simply a bargain?

Mass retailers are looking to upgrade their image and wow shoppers by bringing in big designer names for either a one shot delivery (H&M with Stella McCartney, Karl Lagerfeld), or exclusive branding arrangements such as Simply Vera Vera Wang for Kohl's.

Simply Vera Vera Wang has created lots of buzz for Kohl's and certainly shoppers will benefit from buying a piece of that aspiration from a designer brand at a great discount value.  With $98 bubble skirts and $138 car coats, Simply Vera is being priced way above Chaps and any other brands that Kohl's is currently carrying. This competes directly with Macy's and Bloomingdale's contemporary and value bridge areas. Kohl's will have to figure out how to lure those customers in their doors. I believe the current Kohl's customer profile is a price conscious, discount and value oriented customer. A big designer name probably won't get as much credit with this customer. However, if Kohl's is successful in winning over some of the Federated customers, then they have certainly accomplished their goals.

For Vera Wang, in my opinion, by attaching her name to the Simply Vera Vera Wang label was not a good move. She has a lot more to lose then Kohl's. Estee Lauder created several cosmetics lines for Kohl's without using the Estee name. American Living is a complete lifestyle brand that is being created by Ralph Lauren for JC Penney to be launched 2008, does not carry any part of the Ralph Lauren name. These mega brands that have been around longer than Vera Wang simply do not want to jeopardize their upscale business and offend the retailers who are carrying their current lines.  When compare with the H & M strategy, going downstream with Kohl's is definitely more risky for any big name couture designers. 

In addition, Kohl's runs a 40 to 60% discount frequently and as quickly as the merchandise hits the floor. That will certainly make Simply Vera, simply a bargain.