Designer handbag companies like Tory Burch and Michael Kors have been taking away from Coach’s market share by offering “affordable luxury”. While Coach has been at the upper echelon when it comes to designer handbags, companies like Michael Kors are taking a good portion of their business. In an effort to differentiate themselves from these brands, Coach is thinking of increasing the prices of their products.
Coach is revamping its brand by appointing Stuart Vevers as their creative director and hiring a new CEO. With their all new ready-to-wear collection set to hit the shelves in the fall, the transformation is already underway. Loyal customers will see the
handbag company reposition itself as a lifestyle brand this year. What is one thing you can expect from the rebranded company? Higher price tags.
New CEO Victor Luis has hinted that Coach will be moving into a new level of luxury. While the company is already known as a luxury brand, other companies like Michael Kors are getting the same high-end recognition with lower prices. To separate themselves from affordable luxury brands, Coach might be selling bags at two, three, and five thousand dollars in the near future.
While many may not be thrilled about the price increase, it may work in Coach’s favor. Vevers is looking to create more “it” bags by Coach that are extremely desirable. Coach believes that they can sell these bags for a higher price and they will still fly off the shelves. Coach’s plan is to set themselves apart from other handbag companies, and this plan will definitely achieve that goal.
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