Impact of Tapestry and Capri Monopoly on Mid-Luxury Consumers
The pending merger of Tapestry and Capri Holdings and the ongoing legal issues to consolidate mid-market leather prices could result in an unfair monopoly that limits consumer choice.
The post Impact of Tapestry and Capri Monopoly on Mid-Luxury Consumers appeared first on LUXUO.
Conglomerates Battle For Dominance
In August 2023, Tapestry, the New York-based parent company of Coach, announced plans for a USD 8.5 billion merger with Capri, the owner of founder-led labels including Jimmy Choo, Michael Kors, and Versace. The FTC (Federal Trade Commission) has since sued to block the deal in April 2024 ? which would put six brands including Michael Kors and Coach under a single company ? arguing that the combined companies would monopolise the leather bags and accessories market, inevitably reducing competition and leaving consumers with fewer affordable options. The lawsuit raises concerns that such consolidation could stifle innovation and drive up prices, as a lack of competition often leads to complacency amongst market leaders. According to Reuters, the FTC notes that the deal would also give Tapestry a dominant share of the “accessible luxury” handbag market, controlling over 50 percent of it once the deal was completed.
Brands under Capri Holdings
Read More: Luxury American Company Tapestry to Acquire Capri Holdings in a Bid to Rival European Luxury Conglomerates
Additionally, the FTC highlighted potential repercussions for employees, warn...
The post Impact of Tapestry and Capri Monopoly on Mid-Luxury Consumers appeared first on LUXUO.
Conglomerates Battle For Dominance
In August 2023, Tapestry, the New York-based parent company of Coach, announced plans for a USD 8.5 billion merger with Capri, the owner of founder-led labels including Jimmy Choo, Michael Kors, and Versace. The FTC (Federal Trade Commission) has since sued to block the deal in April 2024 ? which would put six brands including Michael Kors and Coach under a single company ? arguing that the combined companies would monopolise the leather bags and accessories market, inevitably reducing competition and leaving consumers with fewer affordable options. The lawsuit raises concerns that such consolidation could stifle innovation and drive up prices, as a lack of competition often leads to complacency amongst market leaders. According to Reuters, the FTC notes that the deal would also give Tapestry a dominant share of the “accessible luxury” handbag market, controlling over 50 percent of it once the deal was completed.
Brands under Capri Holdings
Read More: Luxury American Company Tapestry to Acquire Capri Holdings in a Bid to Rival European Luxury Conglomerates
Additionally, the FTC highlighted potential repercussions for employees, warn...
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