Coach Buying Part 1

Page 1


Tabl e o f C onten ts Histor y Brand Ident it y C ore Mission C omp any Va lues E xe c ut ive Of f icers Sa les Figures C omp et itors C onsumer Prof i l e Merchandis e Pr icing Store E xp er ience


H is tor y of Coac h Inc. Founded in 1941, Coach began as a family-run

workshop in New York City, they pioneered in the leather goods and accessories market. They were the original American house of leather during the second half of the twentieth century. “We went on to define “accessible luxury” for a generation. Beginning in North America, Coach delivered an alternative to traditional luxury. Then, we expanded beyond our home market, which was the first time international relevance was brought by an American leather goods brand.”


B r a n d Ide n tit y “...bl e nd of cl assi c Ame r i c an st y l e w it h a dist i nc t ive Ne w York spi r it...� C ombi nat i on of st y l e and f unc t i on. St rong consume r or i e nt at i on. E x t re mely wel l made pro duc ts t hat prov i de e xcel l e nt v a lue. R el e v ant l i fe st y l e pro duc ts.


“To

be com e t he c ompany t hat de f in e s g l obal mode r n luxury. ”

“...to make luxury more meaningful, liberating, inviting, and approachable for those who desire more than status.” - Coach.com


p m Co

any

s e u Va l Cr

a m s aft

p i h ns

a M y r u x Lu

s l a i ter

Durability

Custome

r Service


Stuart Vevers Stuart Vevers graduated from the University of Westminster in 1996, where shortly thereafter he got his first job at Calvin Klein followed by positions in the design team at Bottega Veneta, Givenchy, and Louis Vuitton. In 2005 Vevers became the creative director of Mulberry, where he restored the brand into a relevant handbag powerhouse and was awarded Accessories Designer of the Year at the 2006 British Fashion Design awards. In 2007 Vevers became creative director at Loewe until 2013 when he became the Executive Creative Director at Coach.


E xe c ut iv e Of f ic e rs

Victor Luis

Chief Executive Officer. Joined Coach in 2006.

Joshua Schulman

President and Chief Executive. Joining Coach June 5th 2017.

Todd Kahn

President, Chief Administrative Officer and Secretary. Joined Coach in January 2008.

Sarah Dunn

Global Human Resources Officer, Board Member of Coach Foundation She joined in July 2008.

Andre Cohen

President, North America and Global Marketing. Joined Coach in 2008.

Ian Bickley

President, International Group. Joined Coach in 1993.

Kevin Wills

Executive Officer, Chief Financial Officer. Joined Coach in February 2017.


4 3 0 S t o re s i n No r th Am e r ic a

16,000+ Employess Wor ldwide

$4.4 Bil lion in Annu al S al e s


S ales F igures


H a n dba g s are t h e c o re pro d uct c atego r y f o r Co ac h , acco un ting f or 55% of net sa l es in fi sc a l yea r 2014.1 I n t h e h a n dbag c atego r y Co ac h’s n eares t com petito r s i nc l u de Mi c hael K ors (KORS), K a te S pade

(KAT E), R alph L auren (RL), Tor y Bu rc h, a nd Ma rc by Ma rc Jacobs.


Markdown Strategy “Unsold inventory has been a big issue with the brand in the past, particularly when it’s failed to anticipate fashion trends. Deep discounting by rivals also resulted in lower sales for Coach. Aligning inventory with customer requirements and tilting the brand toward higher-priced handbags should help improve margins.� Market Realist


Coach x Disney

Coach has had a few collaborations throughout the years including a team up with Collette kids, and one of the most memorable collaborations was with Disney also in June of 2016. In this Disney collaboration Stuart Vevers released a Classic Disney themed limited edition bags, sportswear, and sneakers. This collection was available online and in Coach stores worldwide.

Coach x Rodarte

One of the latest collaborations is with Rodarte, a 15 piece collection including apparel and accessories and one handbag being released this April.

Coach x Selena Gomez

In December Coach released that they will be teaming up with Selena Gomez for a series of advertisements and will be releasing a codesigned product this Fall.


Competitors


Consumer Profile


Chloe Occupation: Fashion Merchandiser for Nordstrom Rack Union Square for 6 years

Simone Occupation: Lifestyle & Fashion Blogger

Salary: $98k annually

Salary: $60k annually

Age: 34

Age: 25

Graduated from FIT in Fashion Business Management. Grew up in Brooklyn. Loves Instagram and BoF. Has a cat named Karl who likes to cause mischief in the studio she lives in.

Began her own up and coming blog. Companies frequently invite her to fashion shows and she attends after parties with her close friend who also has a style blog.


4 P’s Price

In the category of affordable luxury with price points above brands like Fossil and bellow brands like Louis Vuitton.

Product Luxury Leather bags, wallets, and accessories as well as fine on trend Ready to Wear.

Place Business to Business, Business to Consumer, E-commerce, and Brick and Mortar.

Promotion Magazine advertisements, digital, celebrity endorsements, social media, and out of home.


Product Categories Handbags Small Leather Goods Business Cases Footwear Wearables Scarves Fragrance Jewelry Travel Bags Lifestyle Products


Pricing Handbags Women’s: $1,600 - $135 Men’s: $1,100 - $340 Small Leather Goods: $39 - $395 Business Cases: $295 - $1,200 Footwear Women’s: $95 - $525 Men’s: $195 - $395 Wearables Sunglasses: $160 - $250 Scarves: $75 - $395 Fragrance: $55 - $95 Jewelry: $25 - $495 Travel Bags: $595 - $695 Lifestyle Products: $14 - $1,500


Coach offers quality products that are considered afforable luxuries and is one of the pioneers of the affordable luxury industry. In its wholesale channels, Coach creates a product assortment, which includes price points consistent with the demands of shoppers visiting the

department stores.

automatic replenishment system with

Coach has also implemented an

inventory major department store accounts.


Coach House, the flagship store on Fifth Ave., is an immersive retail experience that captures the creative vision of their brand. They have limited edition styles exclusive to this store, made to order customized Rogue bag that’s completely one of a kind, inside and out. Visitors can shop the complete 1941 collection for men and women. Custom, complimentary monogramming service with unique symbols only available at this location. A Coach workshop that offers luxury leather repair and cleaning services. Complimentary leather care, cleaning, and free repairs up to one year after purchasing a product.


“Our Stores showcase our products and enhance the shopping experience while reinforcing the image of our brand. The modern luxury store design creates a distinctive environment to display our products.” “We continue to be committed to the elevation and enhancement of our in-store imagery through strategic investments in Coach branded stores and wholesale locations. Furthermore, store associates are trained to maintain high standards of visual presentation, merchandising, and customer service.”


Social Media


Citations Coach.com Coach Inc Blog Yahoo Finance Market Realist OneSource SEC Government Website Wall Street Journal Trefis


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