In a federal courtroom in Manhattan, renowned fashion designer Michael Kors took the stand on Monday to discuss the difficulties of maintaining relevance in a rapidly changing industry. The trial, centered around the Federal Trade Commission's (FTC) lawsuit seeking to block Tapestry's $8.5 billion acquisition of Capri, draws attention to the consolidation of six fashion brands under one company.

The proposed acquisition would bring together Tapestry's Coach, Kate Spade, and Stuart Weitzman, with Capri's Versace, Jimmy Choo, and Michael Kors. As the FTC argues against the merger, Kors shared his insights on the challenges faced by legacy brands. "Sometimes you'll be the hottest thing on the block. Sometimes you'll be lukewarm. Sometimes you'll be cold," Kors admitted, emphasizing the need for constant reinvention.

Kors candidly acknowledged that his namesake label, founded in 1981 when he was just 22 years old, has experienced a decline in popularity and expressed the necessity for a brand refresh. Citing "brand fatigue," Kors recognized the importance of staying attuned to the ever-changing demands of consumers.

The FTC's main concern lies in the creation of a dominant player in the handbag market, potentially leading to increased prices for customers without a corresponding improvement in product quality. In contrast, attorneys representing Tapestry and Capri contested the FTC's portrayal, arguing that competition has expanded in recent years. They noted how consumers now consider both luxury and fast-fashion brands, as well as exploring online-only platforms and secondhand marketplaces.

As the trial unfolds, it coincides with a time where consumers are increasingly price-conscious, and the outcome of the U.S. presidential election could impact the FTC's stance. This challenging market environment is reflected in Capri's stock performance, with the company's shares dropping by approximately 24% this year, lagging behind the gains of the S&P 500 and Tapestry.

Furthermore, Kors' testimony highlights the importance of adaptability in the fashion industry. Despite his status as a veteran, he emphasized the need to remain agile and open-minded to changing trends. An example of this is when Kors discovered Aupen, a newcomer in the handbag industry, after seeing Taylor Swift sporting one of their bags. This experience emphasized the influence that celebrities hold in shaping consumer behavior.

In additional testimonies, former Macy's CEO Jeff Gennette shed light on the consequences retailers face when brands lose their allure. Gennette revealed that his company suffered from relying excessively on the Michael Kors brand, contributing to a decline in sales and a challenging period for the department store.

The antitrust trial is set to conclude on Tuesday, with economists from both sides expected to provide their perspectives. The outcome of the trial will have significant implications for the future of the fashion industry and the competitive landscape of the handbag market.