Coach, Inc is a marketer of fine accessories and gifts for women and men. The company is engaged in designing, wholesaling and retailing of handbags and accessories. Its product portfolio includes handbags, women’s and men’s accessories, footwear, jewelry, apparels, business cases, eyewear, and related products. Coach is involved in the sale related activities of its merchandise through factory stores and retail stores in the US and Canada. The company also sells its merchandise through freestanding flagship, department store shop-in-shop locations, retail stores and factory stores in Japan, Hong Kong and China. It wholesales its merchandise through its distributors in 20 countries. The company principally operates in the US, Canada, Japan, Hong Kong, China and Macau. Coach is headquartered in New York. Coach Inc is a leading designer, producer and marketer of classic leather goods and accessories which was a spinoff of Sara Lee in the mid 1980’s These products include handbags, men’s and women’s accessories, business cases, leather outerwear, gloves, scarves, travel accessories, and personal planning products. Coach also sells fragrances and watches with its licensing partners. The products are sold through direct mail catalogs, on-line store, e-commerce websites, 345 retail stores and its 143 factory outlets in North America, 169 stores in Japan and 66 stores in China. Coach focuses on continuous improvements and anticipating the needs of consumer’s lifestyles to maintain its stronghold of the market. Key success factors for Coach as a manufacturer include matching key rivals in quality and styling while beating them on price by 50 percent as well as and the ongoing creative designs. Coach has an exceptionally large and loyal customer base mostly due in part to the outstanding product quality. Coach takes great pride in using skilled employees, quality natural materials, exceptional leathers, and only the finest hardware. Through the years Coach has earned a reputation for producing a product that is known for its durability, craftsmanship, and incomparable product quality. Coach has become one of the most well recognized brands in the United States and is rapidly gaining recognition internationally, especially in Japan. INDUSTRY PROFILE
The Apparel and Accessories Industry is very competitive because companies must find a way to constantly capture market share in a market that is constantly changing to fit consumers taste. Many companies that enter this market fail because they come out with a very popular style for their product for a limited period then go into rapid expansion only to have their product fall quickly out of style and become obsolete. The ability to keep up with changes in fashion trends and finding a niche in the market usually determines which companies can survive in this highly competitive industry.
This industry is highly competitive; consumers in this industry have high demands of luxury, sustainable products with affordable prices. Most if not all of the products sold in this industry are considered luxury products, which means the market will be highly sensitive to economic fluctuations. All of these factors result in putting high pressure on the companies that are in this industry, therefore the key factor to guarantee long term success is to ensure a steady growth yielding a steady income. In the case of Coach Inc the company goes through periods of high sales accompanied with high growth but fails to maintain a steady growth over the extended life due to the believe that the company had in their main strategy which relied upon limited products that are made with a very good quality and sell at 50 percent lower price than its competitor products, Coach Inc was correct in the fact that one of their main factors of success was their “accessible luxury” products to secure a good market share yet they failed...
References: 1As quoted in “Case Study: TNT’s “dramatic surprise” sequel delivers modest results” http://www.best-marketing.eu/case-study-tnts-dramatic-surprise-sequel-delivers-modest-results-2/, May 15, 2012.
2As quoted in “How TNT Made The Biggest Viral Video Ad Of The Year—In Belgium” http://www.businessinsider.com/how-a-belgian-agency-made-one-of-the-most-viral-videos-of-this-year-2012-5?op=1#ixzz2sBtQg1W4, May 15, 2012
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