Donna Karan International Inc.

By Yi Chun Lu (Jean)

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DKNY Spring 2014 Ad Campaign
DKNY Fall Winter 2014 AD CAMPAIGN

Identifying the retail industry sector, format and category of ownership

Donna Karan International Inc. (DKI) is held by LVMH. Today, DKI has own brands, such as City DKNY, DKNY Active, DKNY, DKNY Jeans, DKNY Kids, Donna Karan New York, and Donna Karan Signature. DKI also do selected licensed products, such as beauty products, fragrances, clothing patterns, jewelry, leather goods, watches, sunglasses and sport wear (Hoover, 2014).

According to Loss Prevention and Retail Operations Vice President of DKNY, Paul Paglia, he points out that DKNY owns manufacturing, distribution, warehouse, and retail store. Thus, DKNY’s marketing channel is manufacturer to retail to consumers. In addition, DKNY also licenses its name to others, such as Fossil makes watches for DKNY and PVH makes men's shirts for it. Hence, DKNY's marketing channel is also vertical integration as well as DKI (Hoover, 2014).

Further, the company sells its products to upscale department, specialty stores, and discount outlets in the United States. The company applies muti-channel to reach their customers. For instance, the company uses those channels of the communications in efficient way, such as social networks, company websites, and mobile devices. DKI not only uses mail and catalog, but also applies data mining technology.

Last but not least, DKI is corporate chains to own many brands, such as DKNY New York, DKNY Jeans and Donna Karan that is segmented format. DKI is part of LVMH, which is holding company format.

Source: Hoovers. (2014, July 31). Donna Karan International, Inc. Received from

The Retail Environment

According to The Chinese tourists in America article , it lets business operators to understand Chinese tourists shopping behavior. This blog posts a lot of information, which is very helpful retail business. Thus, business managers or business owners could adjust their business operations and business strategies through those information.

Furthermore, tourists are also important to retailing, because tourists must shop in the United States when they visit. Now the U.S. market demand is very stable, so many companies expand their businesses in developing countries and others. According to above described, the U.S. retailing's businesses must impact on seasonal cycle and the U.S. economic situation. Hence, Every summer and winter vocations that the tourists will bring huge amount of money to the retails, so high-end retails pay close attention on tourists recently.

During our Time Warner Center Field Trip, we are so lucky to meet the store manager in Thomas Pink. He points out that business faces many external environment factors today, such as World Cup event impacts on its store profits in this summer season. Those unexpected threats will cause huge loss for corporations, so store managers must to have plan B to stimulate their store traffic.


The Company Selling Channels

DKNY has both brick-and-mortar and multi-channel retail formats. According to early annual report in 2011 and the company websites, the company operates company owned stores, company owned outlet stores, the company has license arrangements, and strategic alliances with third parties (Annual Report, 2011).

Now company has three stores (brick-and mortar) in New York City and others in nation. The company owns its design house in New York, warehouse in New Jersey, and manufacturing in worldwide. Thus, the company has 15 stores and over 50 discount outlets in the US and the UK. In addition, the company has contracts or licenses its brands to manufacturer and retailers in worldwide. The contracts and agreements will help DKNY to cut down its operating cost and increase its revenue (Annual Report, 2011, Hoover's, 2014) .

DKNY also promote its brand image through TV ad, Twitter, Facebook, Tumblr, and Youtube. Now more and more young people are getting used to technology in their life, so the company must to change their business strategies. For instance, the company uses more social media to promote its brands and creates new product lines to cater to young generation (Generation Y and Millennial Generation).

Hence, every consumer can purchase the products from many types of stores, its website, e-commerce, and mobile device. Those channels offer a variety of ways to shop and they provide more convenient to different types of shopper. The company's final goals are that provide high quality products and excellent services to clients that meet everyone needs. Last thing is to make maximum profits to its stockholders and company.

Source: Hoovers. (2014, July 31). Donna Karan International, Inc. Received from

And Annual Report:

Window Display Pinterest Board

To understanding of the types of window displays that luxury retailer's use and how it affects the stores revenue and increase stores traffic.

Donna Karan International, Inc. - Global Locations

Today, the DKNY has more than 200 stores, where are located around worldwide, like New York and London. The stores are operated by Donna Karan International, Inc. These DKNY stores are available in department stores, specialty stores, outlet stores, and flagship stores in different states (U.S.A) and different continents (England, China, Korea, and the United Arab Emirates). Further, the company also pays more attention on emerging countries, such as China and India, because these counties' economy grow fast due to positive GDP growth. In conclusion, the company has own several types of stores in different locations locally, nationally, and internationally.

One thing I would like to add up, Donna Karan will close Collection New York flagship store. According to Donna Karan explained to Women Wear Daily's reporter, she will close Donna Karan Collection New York flagship store at 819 Madison Avenue, because the store lease due to August, 2014 and this store's space is not enough for its growth business. At the same time, their business generally grow up every year. In other hand, the company plans to find new and big space to expand its business due to provide more display spaces and good services to customers.


Donna Karan International, Inc. - Pricing Structure

Donna Karan International, Inc (DKI) has these brands: City DKNY, DKNY Active, DKNY DKNY Jeans, DKNY Kids, Donna Karan New York, Donna Karan Signature brands. Besides the company has high-end designer's brand likes Donna Karan New York, it also owns its bridge lines, such as DKNY Jeans, DKNY, and etc.

The company's pricing objective is image driven. For instance, all of brands are control by DKI. Those brands are all about a New York infused energy and presents an iconic of New York City lifestyle. In addition, DKNY Jeans is not only just denim Jeans. It represents a symbolic of New Yorker.

The company's pricing practice is one price policy and its pricing technique is odd pricing strategy. For example, Donna Karan Collection and its bridge lines (DKNY or DKNY Jeans) all use one price policy (its prices are passive method) and odd pricing strategy. Moreover, the factors that affect Donna Karan New York, DKNY, and DKNY Jeans pricing practices have perceived value and bridge lines (merchandising practice) may clients have different values on same products or their bridge lines have bad impression on its designer line. For example, the Donna Karan New York's price range on dress is $ 850 to $9,500. DKNY's price range on dress is $255 to $695. DKNY Jeans' price range is $69.50 to $ 109.50. In addition, the company creates its bridge line (DKNY Jeans) in order to expand their market coverage; however, it may Impact on its designer brand (Donna Karan). The DKNY Jeans creates for normal people or younger generation, which makes brand image becomes pop culture trends. Hence, the price may inexpensive compares to its designer brand. Usually people buy designer brand because the products are exclusive. When everyone can wear its one of bridge lines around the city, so luxurious clients may not feel special anymore.

The DKNY often its promotional pricing strategy is on sales. Its stores or its website sometimes offer a sale. It will bring several benefits to company, such as it will stimulate store and online traffic. It also move its inventory turnover fast (Clearing out-of-season goods), and increase its operating income.

Sources:,,, and Ms. Phyllis Shapiro's Power Point slides.


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