OVERVIEW American brand of accessible luxury accessories and gifts for women and men Since his appointment as chief executive in 2014, Victor Luis has repositioned the American leather goods company as a modern luxury brand, with a focus on global expansion and brand acquisition to bolster the once-struggling business. Public Company since 2000
Assortment handbags, footwear, jewelry, fragrance, atches, business cases, outerwear, travel accessories, and more. Retails from $300 to $6,000 E-Commerce Launched in 1999
Multi-channel distribution strategy Authorized stores, outlet stores, catalogs, company website, select department stores Brick & Mortar 500+ stores in US and Canada, 300+ directly-operated locations in Japan, China, Singapore, Taiwan, Malaysia and South Korea
Started as a family run workshop in New York.
1941
Coach notices a hole in the market for affordable luxury handbags.
The Coach Signature Collection Featuring the double C design was created.
1979
2001
Coach Inc. acquires Kate Spade and then changes their name to Tapestry.
2017
HISTORY 1962
2000
The Coach staple brass toggle and the duffel bag shape were created.
The company becomes public.
2016
Trying to market to a younger demographic the brand partners with Selena Gomez.
VALUES We see possibility in the impossible We nurture authenticity We integrate individuality and teamwork We fuse creativity and logic
MISSION
To become the company that defines global modern luxury
ORGANIZATIONAL CHART
Chief Executive Officer Victor Luis
Coach President Joshua Schulman
Global Business Development Ian Bickley
Kate Spade President Anna Bakst
Information Officer Joshua Schulman
Global Inventory Management & Planning Adrianne Kirszner
Global Supply Chain Peter Charles
Global Investor Relations & Corporate Communications Adrea Shaw Resnick
Stuart Weitzman President Wendy Kahn
Global HR Sarah Dunn
Financial Officer Kevin Wills
Administrative & Secretary Interim General Counsel Todd Kahn
Global Strategy & Data Labs Zeynep Schoenwaeider
REVENUE $4.1 billion in annual Revenue in 2017 $4.24 billion USD 2016
FUTURE GROWTH Expected revenue for fiscal 2018: $5.8 billion to $5.9 billion, with Kate Spade contributing over $1.2 billion. Coach intends to take back its footwear license, bringing shoe design and production in-house. Citing a combined $80 billion in global business opportunity, Luis says that footwear, handbags and outerwear will be the major focus of the brand. Those three categories will also determine any future acquisitions by Tapestry. “As we think about acquisitions beyond Stuart Weitzman, we’ve been very consistent for years now in our capital allocation strategy” says Luis.
MARKET OVERVIEW
Revenue in the Handbags segment amounts to US$13,638m in 2018. North Asia is expected to generate 51.8% of the handbag markets total revenue in 2018. The most important aspects of the market are establishment of brand names, access to niche markets, & economies of scope. Coach reacted early to handbag fatigue, going higher-end again. Micheal Kors is trying to restore its luxury aura by pulling its wares from department stores and Kate Spade simply put itself up for sale. The $9.3 billion market grew a mere 2% in 2016, according to Euromonitor International. (That follows a nearly 1% sales decline in 2015.) Consumers are looking for cheap prices at Kate Spade or extreme luxury bags at Fendi. The hole in the market that Coach once thrived in has been obsolete because of the fight for sales resulting in outlet stores that degraded the brand image.
STRENGTHS
S
• Over 75 years of existence and experience • Strong Global Presence • Multi Channel Distribution: Malls, Outlets, Online, etc • Offers personalization and basic customization • Good Financial Positioning • Encouraging and impressive customer service
OPPORTUNITIES
• Growing luxury market in • developing countries
O
• Expansion in countries like India, China • Targeting the millennial generation • Tapping into sustainability • Growing market need for customized products
WEAKNESSES
• Dated designs and limited silhouettes
W
• Lack of innovation • Low involvement with the male target market • Large number of sales account from low quality products sold in outlets • Reliance on handbags • Department store exposure • Small geographic concentration
THREATS
• Declining brand Image
T
• Uncertainty Overseas- Counterfeit of products • Strong competitors • Past Struggles with Finance • Highly Saturated Market
COMPETITIVE ANALYSIS
POSITIONING
PRIMARY COMPETITORS
DISTRIBUTION
1,043 stores in the world
960+ retail stores globally
80+ outlet stores
Online website
Phone app
POINT OF SALE Retail Stores Outlets Online App
SALES DISTRIBUTION
68% in store 32% online
MARKETING DISTRIBUTION
• E-Commerce: U.S., Canada, Japan, China, South Korea • Social Media: Facebook, Pinterest, Twitter, Instagram and Snapchat • Email: 25% off to email subscribers seasonally • Media: National and International platform through TV ads • Celebrity brand ambassadors - increases the brand visibility; Gwyneth Paltrow, Karlie Kloss, Selena Gomez (most followed account on instagram) Print Posters Magazines Global billboards
Annual Spending Figures Fiscal 2016 - $202 million
P RO M O T I O N
EVENTS
RUNWAY
Confusing Tried to appeal to millennials Lead to them being off-brand
POP UP SHOPS
These spaces provide interactive retail spaces and experiences due to Coach’s involvement with customization called Coach Create.
COMMUNICATION
BRICK & MORTAR
• Well-trained and knowledgeable sales personnel • Impeccable service to customers • Training provided to all employees by AchieveGlobal (customer service training company) • Cohesive store layout: sense of familiarity and ease of purchase in all stores • Easing away from department stores & outlets slowly MODELS
• More diverse (race, gender, and identity) to tap into modern market • Usually singular model in ads • Portray sophistication and elegance • Celeb endorsements - Gwyneth Paltrow, Emma Watson, Selena Gomez • Disconnect from recent fashion show to brand
TARGET MARKET
Coach’s primary target market is men and women aged between 20s- 40s who possess mid to high levels of disposable income, seeking distinctive, easily recognizable, accessible luxury products that are relevant, well made, and provide excellent value. The appeal of Coach to these customers lies in its original American attitude and design and rich heritage of fine leather goods.
VALS CUSTOMER PROFILES 15% Thinkers Mature, responsible, well-educated professionals high incomes but are practical consumers and rational decision makers.
30% Believers They are conservative and predictable consumers who favor local products and established brands. Their lives are centered on family, community, and the nation. They have modest incomes.
35% Strivers They have values very similar to achievers but have fewer economic, social, and psychological resources. Style is extremely important to them as they strive to emulate people they admire.
20% Experiencers They are the youngest of all the segments, with a median age of 25. They have a lot of energy, which they pour into physical exercise and social activities. They are avid consumers, spending heavily on clothing, fast-foods, music, and other youthful favorites, with particular emphasis on new products and services.
HAN “THINKER”
21 Single 60,000 Annual Pocket Money Wears a lot of black Comes from a wealthy family Studies photography in Beijing Eats Peking Duck twice a week Goes to all of the art and fashion events Loves a variety of brand names from Gucci, Tommy Hilfiger, Coach, and Opening Ceremony His go to bag is his Coach brown leather backpack
MARIA “EXPERIENCER�
27 Born in Russia Travel Blogger Income - $60,000 Has a cat named Lucy Dating her college boyfriend Loves mixing leather and denim Loves exploring the native food Communications Major from UCF Infatuated with the classic aesthetic Drinks a cup of green tea every morning Buys luxury handbags, makeup, and sunglasses
JASMINE “BELIEVER�
32 Born in Georgia Income - $40,000 Marketing Manager Sophisticated and Classic Posts to Instagram religiously Focused on pursuing her career Always wears her Coach Varsity jacket Listens to Beyonce, Bruno Mars, & Pharell Buys Michael Kors, Coach, and Kate Spade Starbucks and cappuccinos are her lifesaver Splurges on handbags, watches, and jewelry Plans on having kids in the next couple years Loves accents of gold on all of her accessories
THANK YO U !
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