Vera Wang's New Line Is The Most Expensive Apparel Brand At Kohl's

Implications: 1.In department stores, it is very rare that the most expensive line in a department ever does well. 2. It is unlikely that the typical Kohl's customer ever heard of Vera Wang. 3. Kohl's advertising campaign on this brand does not speak to their moderate customer base. 4. Vera Wang's designer line will not suffer and she will make some very nice short term money until Kohl's management recognizes its strategic mistake.

Analysis:  For many years, moderate department stores such as Dillard's, have been unsuccessful in adding more upscale brands to their merchandizing mix and it's no secret that Macy's is having a tough time converting former May Company customers to their higher price points.

Vera Wang would have had a better long term chance of success  by licensing her name to a an apparel manufacturer and created a contemporary sporstwear line to be sold to upscale specialty and department stores. I am amazed that the management at Kohl's was not asute enough to research past failed attempts by their competitors to sell lines at higher price points than their core customers were accustomed to.

It would seem prudent for Kohl's to montitor sales results closely on this brand and if, as I suspect, it under performs cut bait quickly and focus more on the needs and price points that make sense to their core customers.