Will Versace lose its soul post-Donatella?

Few names in fashion evoke as much cultural resonance as Versace. From its inception in 1978 under Gianni Versace to its rise as a symbol of bold self-expression, the brand has stood for unapologetic individuality and glamour. Yet, since Gianni’s tragic murder in 1997, Versace has struggled to maintain its identity, often caught between honoring its heritage and chasing broader market appeal, especially since its acquisition by Michael Kors/Capri. Now, with Donatella Versace stepping down as creative director after nearly three decades, the brand faces perhaps its most critical juncture yet. The question is whether Versace can reclaim its position as a cultural force or if it risks disappearing into irrelevance. A legacy of boldness undermined by timidity Under Donatella’s leadership, Versace remained synonymous with daring designs and a celebration of individuality. Her tenure was marked by iconic moments, think Jennifer Lopez’s green Grammy dress or the revival of supermodels on the runway. Yet, despite these cultural milestones, the brand has struggled commercially in recent years. Capri Holdings’ acquisition of Versace in 2018 for $2.1 billion was meant to revitalize the house, but instead, it introduced a series of strategic missteps that diluted its identity. Insiders suggest Donatella’s departure was not entirely voluntary. Reports indicate that her frustration with Capri’s constant interventions in creative direction led to her decision to step aside. The result has been a brand story riddled with inconsistencies, caught between staying true to its heritage and attempting to cater to a broader audience. This lack of strategic clarity has left Versace adrift, alienating loyal customers while failing to attract new ones. The essence of Versace has always been about empowering individuals to embrace their uniqueness without apology. It celebrated boldness, sensuality, and confidence, qualities that made it a cultural icon. But in recent years, this narrative has been watered down. Attempts to appeal to everyone have left the brand pleasing no one. If Capri Holdings, as reported, now shifts the focus for Versace toward “elegance” and “product-focused” strategies under new creative director Dario Vitale, the risk is clear: Versace will likely lose what little remains of its distinct identity. We may witness the same strategic mistake Gucci embarked on when they departed from the era Michele. The wrong lessons from luxury trends Capri Holdings’ decision to pivot toward understated elegance appears to be an attempt to align Versace with the prevailing “quiet luxury” trend permeating the market. Brands like Dior and Prada have successfully embraced more refined aesthetics, appealing to affluent consumers seeking timeless sophistication over ostentation. However, this approach fundamentally misunderstands what made Versace unique. Versace was never about subtlety; it thrived on radical audacity. Its Medusa logo, vibrant color palettes, and sensual silhouettes were statements of unapologetic power and individuality. To strip away these elements in favor of muted elegance risks erasing the very DNA that set Versace apart from competitors. Worse still, it places the brand in direct competition with established players like Dior and Prada, brands that have spent decades perfecting their refined aesthetics. In trying to imitate these houses, Versace risks becoming a pale imitation rather than standing out as an original. If followed through, it would be brand distraction par excellence. The luxury market thrives on uniqueness and differentiation. Consumers don’t just buy products; they buy into stories and identities that resonate with their values and aspirations. For decades, Versace’s story was one of unapologetic self-expression. It stood for a celebration of being bold and unbothered by societal norms. By abandoning this narrative in favor of chasing trends, Capri risks erasing the emotional connection that once made Versace a cultural powerhouse. When a brand that celebrates being different becomes a brand that inspires conformity, there is a fundamental misunderstanding of its core values. Donatella’s exit: A turning point or a warning sign? Donatella’s transition from creative director to chief brand ambassador marks the end of an era for Versace. While she will continue to represent the brand publicly, her departure from day-to-day creative control raises serious questions about its future direction. Vitale, formerly of Miu Miu, now faces the daunting task of steering one of fashion’s most iconic houses through a period of uncertainty. His appointment has been met with mixed reactions within the industry. Some see his background at Miu Miu, a Prada Group brand known for its youthful yet sophisticated designs, as an asset that could bring fresh energy to Versace. Others worry that his aesthetic sensibilities may not align with the boldness that defines the house’s heritage. Complicating matters further are persistent rumors that Prada may acquire Versace from Capri Holdings for approximately 1.5 billion euros ($1.6 billion). Such a deal could potentially bring stability and strategic vision to the brand but also raises concerns about whether Versace would be subsumed into Prada’s design philosophy, losing even more of its individuality. A call for brutal honesty Before making any further strategic pivots, Capri Holdings must conduct a brutally honest audit of what went wrong at Versace over the past two decades. The brand’s struggles cannot be attributed solely to market conditions or changing consumer preferences; they likely stem from a lack of strategic clarity and an erosion of core values. What made Gianni Versace’s vision so powerful was its coherence: every collection, campaign, runway show, and his own larger than life lifestyle reinforced a singular message: fashion as a celebration of individuality, hedonism and self-confidence. This clarity allowed Versace to resonate deeply with consumers across generations and geographies. In contrast, today’s iterations of Versace feel fragmented, more of the same and directionless. A philosophy of life eroded into an inconsistent design philosophy. The key question management must ask is not how to imitate competitors but how to rediscover what makes Versace unique in 2025. How can it reclaim its position as a cultural force? How can it inspire consumers again? These are not easy questions to answer, but they are essential if Versace is to avoid becoming another disaster in luxury fashion. Will Versace reclaim its soul, or fade away? Versace was one of the most iconic and influential names in fashion, a brand that once defined an era and inspired millions around the world. These times are long gone. Therefore, the task is not just to find a creative direction but to fundamentally rebuild brand equity or to face irrelevance. Rebuilding the brand will only work if Capri or any future owner goes all in on Versace. Compromises on a brand that was uncompromising at its peak won’t work. The leadership changes at Capri Holdings suggest an urgency to address declining sales and market share, but urgency without clarity can be dangerous. If Capri continues down its current path, chasing trends rather than owning its unique space, Versace will fade into oblivion. Gucci’s dramatic downfall underscores how fast brands decline in today’s world when misaligned. However, there is still hope for redemption if the brand can reconnect with its roots and reassert itself as a beacon of bold self-expression. In an industry driven by emotion and storytelling, staying true to one’s identity is essential for survival. For Versace, this means doubling down on what made it great: celebrating individuality without compromise or apology. Whether it can rise to this challenge remains to be seen. But one thing is certain: the world doesn’t need another Dior or Prada; it needs what once made Versace an icon. This is an opinion piece by Daniel Langer, CEO of Équité, recognized as one of the “Global Top Five Luxury Key Opinion Leaders,” and advisor to some of the most iconic luxury brands in the world. He serves as an executive professor of luxury strategy and pricing at Pepperdine University in Malibu and as a professor of luxury at NYU, New York. Daniel has authored best-selling books on luxury management in English and Chinese, and is a respected global keynote speaker. Daniel conducts in-person masterclasses on various luxury topics across the world. As a luxury expert featured on Bloomberg TV, Forbes, The Economist, and others; Daniel holds an MBA and a Ph.D. in luxury management, and has received education from Harvard Business School. Sign up for his online luxury masterclasses at the Jing Academy.

Will Versace lose its soul post-Donatella?

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Published March 31, 2025

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Will Versace lose its soul post-Donatella?