A Fashion Design House Purchases a Music Company – an Example of a Divers

A fashion design house purchases a music company – an example of a diversification strategy. Diversification is a business strategy that involves expanding into new markets or product lines.

Introduction

In October of last year, a fashion design house by the name of Kering (formerly known as PPR) made headlines when it was announced that they had purchased a majority stake in the French music streaming service Deezer. The purchase, valued at around €100 million, gives Kering a 53% share in the company.

While this may seem like an odd move for a fashion company, it actually falls in line with Kering’s strategy of expanding into new markets and industries. The company has been on a bit of a buying spree lately, having also purchased the online luxury retailer Yoox Group and the Swiss watchmaker Ulysse Nardin.

The purchase of Deezer also fits with Kering’s focus on building strong relationships with millennials. The music streaming service has over six million active users, most of whom are between the ages of 18 and 34. By investing in Deezer, Kering is hoping to build a closer bond with this important demographic.

There are some risks involved in this strategy, of course. Kering is not a music company and doesn’t have any expertise in that industry. They are also investing quite a bit of money into an unproven business model. However, if everything goes according to plan, the purchase of Deezer could be a very savvy move for the fashion giant.

The Fashion Design House

The Fashion Design House is a well-known fashion label that has been in the industry for over 20 years. The company has always been known for their unique designs and high quality materials. A few months ago, the company decided to branch out and purchase a music company.

History

The House of Versace (Italian: [fɛrˈsaːtʃe]), commonly referred to as Versace, is an Italian luxury fashion company and trade name founded by Gianni Versace in 1978. The company designs, markets and distributes luxury ready-to-wear, leather goods, shoes, fragrances, makeup and home furnishings under the various brands of the Versace group.

Versace was founded in 1977 by Gianni Versace. His older sister Donatella took over the company after his murder. The brand’s logo is the head of a Medusa, a Greek mythological figure. The logo came from the floor of ruins in Rome that the Versace siblings played in as children. Gianni originally wanted to use the sea creature but Donatella pushed for the Medusa because it was stronger and more mysterious.

Products

Fashion products include clothing, footwear, accessories, jewelry, and cosmetics. In addition to production and selling these products, fashion design houses may also engage in merchandising, which is the process of licensing their designs to be produced by other companies. Some fashion design houses also operate their own retail stores or sell their products through other retailers.

Fashion design houses typically employ one or more designers who create new garments and accessories seasonally. The fashion designers may work alone or as part of a team. In addition to designing new clothing and accessories, they may also be responsible for selecting the fabrics, colors, and patterns that will be used in each season’s garments. They may also oversee the production of garments by manufacturers.

Many fashion design houses also have public relations staff who handle media relations and promote the designer’s brand. Some fashion design houses also have customer service staff who handle orders from retail stores and private customers.

The Music Company

Fashion design house, Dior, has recently announced the purchase of a majority stake in the music company, EMI. The move is part of Dior’s strategy to branch out into new areas and markets. EMI is a well-established music company with a long history and a strong portfolio of artists. The purchase will give Dior a new platform to reach consumers and expand its brand.

History

In 1887, Emile Berliner founded The Music Company in Hanover, Germany. He patented the Gramophone in 1887, and his company began mass-producing the devices by 1889. The Music Company quickly became one of the largest and most successful manufacturers of gramophones and records in the world.

In 1898, The Music Company expanded into the United States, opening a factory in New Jersey. The company continued to grow rapidly, and by 1910 it was the largest gramophone manufacturer in the world.

The Music Company entered the fashion industry in 1915 when it purchased a French fashion design house. The company continued to expand its reach into new industries, and by the mid-1920s it was a major player in several different markets.

The Music Company diversified even further during the 1930s, acquiring businesses in a wide range of industries such as publishing, banking, and aircraft manufacturing. By the end of the decade, The Music Company was one of the largest and most diversified conglomerates in the world.

The Music Company experienced a period of turmoil during World War II, but it emerged from the conflict as one of the strongest companies in Europe. The company continued to diversify and expand throughout the second half of the twentieth century, becoming a truly global enterprise.

Today, The Music Company is a leading conglomerate with interests in many different industries including fashion, music, banking, publishing, and aircraft manufacturing.

Products

The Music Company is a fashion design house that specializes in music-themed clothing and accessories. The company was founded in 2006 by musician and fashion designer John Legend and his wife, model Chrissy Teigen. The company’s mission is to bring music and fashion together, and to create a style that is both timeless and modern.

The Music Company’s product line includes men’s and women’s clothing, accessories, and home decor. The company offers a wide range of products, from casual wear to formal wear. The Music Company also has a children’s line, which includes music-themed clothing and toys.

In addition to its clothing line, The Music Company also sells a variety of music-related merchandise, including CDs, vinyl records, posters, and T-shirts. The company has an online store as well as two brick-and-mortar stores, one in New York City and one in Los Angeles.

The Purchase

A fashion design house purchase a music company in order to increase their range of products and/or services. The two industries are usually quite different, but the fashion company may feel that the music company’s customer base will be interested in their clothing line. This is an example of a company diversifying its business.

Reasons for the purchase

In an industry where albums are being streamed for free and music sales have been in decline for years, one fashion design house has made an interesting purchase.

The purchase of a music company by a fashion design house may seem like an odd choice, but it makes perfect sense when you consider the current state of the music industry. By purchasing a music company, the fashion house will be able to tap into a new market and reach a new audience.

The music industry is in decline because people are choosing to stream music for free, rather than purchasing albums. This has led to a decrease in sales, which has had a negative impact on the industry as a whole. However, there is still a market for music, and by purchasing a music company, the fashion design house will be able to reach this market.

The fashion design house will also be able to tap into the talent of the musicians who are signed to the music company. By collaborating with these musicians, the fashion house will be able to create unique and innovative products that will appeal to their customers.

This purchase is a smart move for the fashion design house, and it will allow them to reach a new market that they otherwise would not have had access to.

How the purchase will benefit the fashion design house

The purchase of a music company by a fashion design house is an example of a diversification strategy. By acquiring a company in a different industry, the fashion design house is able to reduce its dependence on the fashion industry and become less vulnerable to fluctuations in that industry. The music company also provides the fashion design house with a new customer base and the potential for cross-promotional opportunities.

Conclusion

In conclusion, the purchase of a music company by a fashion design house is an example of a diversification strategy. This type of strategy can be beneficial for a company because it can help to mitigate risk and open up new avenues for growth. However, it is important to note that this type of strategy can also be risky, and it is important to carefully consider all potential risks and benefits before undertaking any such move.