Background in Brief:
Coach was first established in 1941, as a small family run leather goods manufacturing business. Over time Coach became recognized as a premium brand that provided superior quality leather goods in classic styles and in the 1980`s it opened exclusive Coach retail stores. Coach was sold to Sara Lee in 1985 and experienced rapid expansion. Coach`s product portfolio was expanded to include, accessories, luggage and briefcases and many more exclusive Coach stores and Boutiques were opened. By the late 1980`s there were 12 exclusive Coach retail stores as well as approximately 50 boutiques selling Coach products within lager department stores. While Coach ...view middle of the document...
As Coach’s business model is based on multi-channel international distribution the success of the corporation does not depend exclusively on the performance of a single channel or geographic area.
COACH INC. CHALLENGES
1. Intense Competition
Coach, Inc. (COH) operates in the fast-paced and dynamic fashion industry. Its design decisions are critical. These calls can significantly impact the company’s revenues and earnings. Due to the fragmented nature of the industry, Coach also faces stiff competition from other industry players, notably Michael Kors (KORS), Tory Burch, Ralph Lauren (RL), and Kate Spade (KATE).
* Ralph Lauren
Ralph Lauren Corporation is galloping at a faster clip than when its namesake founder first entered the arena more than 45 years ago. With golden mallet brands such as Polo by Ralph Lauren, Chaps, RRL, Club Monaco, and RLX Ralph Lauren, the company designs and markets apparel and accessories, home furnishings, and fragrances. Its collections are available at nearly 11,500 locations worldwide, including many upscale and mid-tier department stores. (Macy's accounts for 25% of all wholesale revenue.) The company operates about 435 Ralph Lauren and Club Monaco retail stores worldwide as well as eight e-commerce sites. American style icon and CEO Lauren controls the company.
* Louis Vuitton
LVMH Moët Hennessy Louis Vuitton is the world's largest luxury goods company, with brands that are bywords for the good life and everything showy. LVMH makes wines and spirits (Dom Pérignon, Moët & Chandon, Veuve Clicquot, and Hennessy), perfumes (Christian Dior, Guerlain, and Givenchy), cosmetics (Bliss, Fresh, and BeneFit), fashion and leather goods (Donna Karan, Givenchy, Kenzo, and Louis Vuitton), and watches and jewellery (TAG Heuer, Bulgari). LVMH's selective retail division includes Sephora cosmetics stores, Le Bon Marché Paris department stores, and 61% of DFS Group (duty-free shops). Chairman Bernard Arnault and his family, through Groupe Arnault, own about 46% of LVMH.
* Kate Spade
The company operates about 170 specialty shops and outlet stores in the US and abroad, and also sells apparel and accessories online and to department stores. It also owns the Adelington Design Group and supplies JC Penney stores with the Liz Claiborne and Monet jewellery lines. Kate Spade & Co. narrowed its focus and took the name of its best performing brand after spinning off Juicy Couture and Lucky Brands. To reflect its mono-brand focus, the company (formerly Fifth & Pacific) changed its name in 2014.
* Michael Kors
Michael Kors Holdings Limited, incorporated on December 13, 2002, is a global accessories, footwear and apparel company with a presence in around 100 countries. The Company operates its business in three segments: retail, wholesale and licensing. The Company has a global distribution network focused on Company-operated retail stores, department stores, specialty stores and select...