Focus on your brand, not on
selling handbags.
Manage the price of your bags
so that you have less of them in the market. It is understood that the Coach Outlet
business drives a high volume of sales, but bringing those units back under
control may help in regard to long term benefits. Yes, we mean you may want to strategically lose
some of your current business (I know that purposely losing business
sounds crazy). It is understood that
even if you improve your margin on portion of your business, your loss in
volume may result in a temporary loss in total revenue. This is OK, because you will have the very valuable
opportunity to regain your footing as a desirable “luxury” brand. As a public company, quarterly & yearly results
are clearly important. However, if you
can fight the urge, you may want to work toward long term goals instead.
As the brand becomes re-secured
back in the category it had originally been intended (obtainable luxury),
concentrate on properly developing more product categories. Gain back your sales volume in breadth of
assortment not depth in a particular category.
It is important to note that I said “PROPERLY” developing more product
categories. This does NOT mean your
company should simply create product for the sake of creating product. Each category and individual item must be
planned, designed, and executed with thought and accuracy. This includes the critical aspect of a clear
and appropriate marketing strategy for each new category. All of which must tie carefully into the
overall brand message.
Luxury brands have no place
dabbling in the discount market. In my
mind, outlets and discount go hand in hand.
Coach must stay more clean…
Here is a two year stock
chart for Coach retrieved today (from Yahoo finance).
From above $60. a share to the low 30’s in two years. Are they ready to begin their climb back to the top? I think yes. Maybe not happen overnight, but the potential certainly exists.
If you are tired of reading our thoughts about this brand, you may want to take a break and shop at Coach for a wide assortment of products.
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