• Home
  • News
  • Coins2Day 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
MPWFashion

Why Donna Karan’s shift from high fashion to lifestyle brand is good business

By
Jared Lindzon
Jared Lindzon
Down Arrow Button Icon
By
Jared Lindzon
Jared Lindzon
Down Arrow Button Icon
July 6, 2015, 2:03 PM ET
Donna Karan
Donna Karan speaks at the Women’s Fund of Long Island Hamptons Summer Kick-Off benefit at the Sebonack Golf Club in Southampton on Saturday, June 6, 2015, in New York. (Photo by Scott Roth/Invision/AP)Photograph by Scott Roth — Invision/AP

Last week, designer Donna Karan announced that she’s leaving Donna Karan International (DKI) to focus on her lifestyle business, Urban Zen. Once casual fashion industry observers got over their shock that Karan would no longer run her namesake label, many had the same question: What’s Urban Zen?

The line is a curious combination of lifestyle brand and nonprofit. Urban Zen sells apparel, accessories, home decor and more—in stores and online—with 10% of all proceeds going to the Urban Zen Foundation, which specializes in educational, health and employment issues in developing countries and the U.S.

Those who’ve followed Karan’s career closely say that they’re not surprised to see her making this transition. “She’s had concerns for a number of years at the way [DKI] is being managed,” said Fflur Roberts, the head of luxury goods at Euromonitor International, a London-based market intelligence firm. “As a women with so much creativity, she probably found it increasingly frustrating. The fact that she’s now moving away to her lifestyle brand is no surprise, and long term she will probably find much more happiness in that.”

Roberts adds that many of Karan’s early customers are now members of an older demographic, one that has the highest rate of disposable income in the developed world and can afford high-end lifestyle products.

“These consumers she’s had through the years have a lot of respect for her,” she said. “If she puts her name to something that she’s created…it’s going to fly off the shelves.”

“I would venture to say that almost all of her licensing businesses are bigger than her clothing businesses,” said Marshal Cohen, the chief industry analyst of The NPD Group Inc., a global market research and consumer analysis firm. “Lifestyle is the way of the future. It’s been big for the last decade and is only getting bigger.”

Cohen also believes that the timing is perfect for making the transition. The retail industry has been in decline for years, while lifestyle brands like Urban Zen are on the rise.

“Think about it, it doesn’t matter where you live, you will never see more yoga-inspired merchandise, more lifestyle products that come from this natural Zen lifestyle than you’re seeing now,” he said. “This is either the beginning of its peak or at its peak—why not take advantage of it? And if it’s her passion than absolutely it’s the right time to do it.”

Furthermore, Cohen suggests that last week’s announcement doesn’t necessarily spell the end of Karan’s direct influence on the high-end fashion industry.

“Remember, nothing is permanent,” he said. “We’ve certainly seen showcase designers leave and come back, we’ve seen them take leaves of absences, we’ve seen them sell and buy back, so it’s not like she’s disappearing from the face of the earth.”

About the Author
By Jared Lindzon
See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Coins2Day 500
  • Global 500
  • Coins2Day 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Coins2Day Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Coins2Day Brand Studio
  • Coins2Day Analytics
  • Coins2Day Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Coins2Day
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Coins2Day Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Coins2Day Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.