Michael Kors opened its first store in Moscow
Despite the sanctions, and the troubles of the Russian economy, the American company is optimistic about its new project.
Here in the pages of The Luxonomist a few days ago the economist Javier Santacruz, made a comprehensive analysis of Michael Kors, American giant of the luxury industry. In this article Santacruz, wrote about a good perspective for the company, and its good positioning in the stock exchange. At the same time, we read the news of the opening an exclusive Michael Kors shop in Moscow, the first one that the company opened in Russia.
Previously, the distribution of luxury products of the American company was developed by BSN Holding. , specialized in large global luxury brands such as Armani Jeans and Topshop. They began the business in 1997 with the distribution in Russia for Mexx, a Dutch textile company, which recently declared bankruptcy. «Despite the Mexx financial problems, BSN continues working for the Dutch company in Russia, said Kyril Bogatyrev BSN CEO, which has in Russia over 200 stores world-class brands.
A conceptual design. Specifically for this store, the design team has developed a boutique using the symbolic elements in the aesthetics of the brand: bright light, varied glass surfaces, black and white vintage posters , to create an atmosphere of elegance and glamour. The second floor of the boutique is a VIP area for a personalized service, in order to advise the customers of the brand. «That superior sense of style that Russian women have,-says Michael Kors, by which they love fashion, and that is why Moscow is the perfect place to buy Michael Kors Collection. I’m glad that now many of the brand followers in Moscow have the opportunity to buy their favorite products in this conceptual shop».
The «resurrection» of the Ruble.Despite the financial difficulties that the Russian economy faces since the last quarter of 2014 ,including the sanctions imposed by USA (country of Michael Kors), plans to open the store did not change. Michael Kors , actually , its being lucky because the Ruble has been greatly appreciating the past few weeks. This is a good help for the luxury industry that sells in Russia as well as that which, located abroad, mostly deals with Russian tourists. With the Euro exchange rate in 53 rubles the appeal to the Russian upper middle class, to go on holiday abroad, comes back.
Not only the Russian currency has appreciated sharply (no long time ago-the EUR / RUB exchange rate was close to 90)- but also the Moscow Stock Exchange Index its having a period of strong growth, and shows an annual increase of 35%. Something hard to believe, especially considering that the price of oil is still low, in a moment in which sanctions between Russia and the West are unlikely to end.
Disclosure: The author is not responsible for the views expressed in the article. The text has been written freely expressing ideas, without receiving any compensation. The author has no business relationship with any of the companies whose shares are listed in this article.