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Coach will not only be regarded as “affordable luxury” brand a pioneer in the concept, but also to the quality of big-name, the relative price of the challenges of the People First European luxury Jianghu veteran status and market share. From the 2001-2007 fiscal year, Coach’s sales compound annual growth rate of more than 20%, fiscal 2007 annual sales of more than 2.6 billion U.S. dollars.

According to the World Brand Lab reports: the rapid expansion in the scale at the same time, Coach’s is also a substantial increase in profitability, operating margins in fiscal 2007 reached 49.1 percent, much higher than the other competitors. However, how to balance the commercial interests of the brand image and the relationship between the increase in revenue, improve market share at the same time to ensure that a luxury brand name will not fade, Coach are facing a major test.

With the LV or Hermes and other luxury brands at every turn more than 100 years of history, was born in 1941, the Coach can only be regarded as a “junior,” and it was born in the United States and other European brands seem to lack compared to “noble blood” of advantage. Today, however, Coach will not only be regarded as “affordable luxury” brand a pioneer in the concept, but also to the quality of big-name, the relative price of the challenges of the People First European luxury Jianghu veteran status and market share.

Someone even though it “luxury” noncommittal name, or even scoff at someone, an indisputable fact is that in October 2000 before a public listing of Coach, as of December 31, 2007 of the past 5 years, the stock rose from 8.3 U.S. dollars to 30.58 U.S. dollars, up 268.43 percent accumulated in a large number of luxury high on the list of manufacturers. Even though the impact of the crisis in the Subordinated Debt, the U.S. retail industry overall downward trend, but the first quarter of fiscal 2008 (July 1, 2007 -9 month on the 30th), Coach’s sales than the same period last year increased by 28 %. 2007 fiscal year (July 1, 2006 -2007 year June 30) of the Sales revenue increased by 28.37 percent, more than 2.6 billion U.S. dollars, in 2001 this figure was just for 700 million U.S. dollars. Coach brand at high-speed growth of its own at the same time to Coach, as represented by the “new luxury doctrine” is a little bit of the past devouring preach the “aristocracy” in the “old luxury” in the site, so that “quality culture” more broadly to the public consumption Class infiltration.

From the “boxing gloves” to the luxury

In less than 60 years of development history, Coach has experienced the second major transformation, eventually becoming the manufacturing industry today, the most luxury brand growth. In 1941, Coach, founder of baseball gloves arising due to the inspiration, the creation of a small-scale factories. Century 60’s on it the first time in transition to create handbags. In 1985, Coach was named Saralee company after the acquisition, sales income 19 million U.S. dollars from a rapid rise to 500 million U.S. dollars. Experienced a period of rapid development in the first paragraph, Coach has become the United States and handbags major brands, and to open the international market.

However, not last. From the last century 90’s start, LV, Gucci and Prada and other brand’s revitalized brand, begin to introduce a large number of trendy handbags, occupied a large part of the market share. Coach and also the production of dermis, the thick solid lawyer briefcase, gradually lost its consumers. In 1995, the current CEO took over the brand Frankfurter. In his lead, Coach handbags using new materials, new design, re-create the Coach and the feminization of fashion image. Patterns for the raw materials to weaving handbag cortex compared with the real, substantial savings in costs, thereby enhancing the company’s profit margins.

It is from this period start, Coach start positioning in the “accessible luxury”, also known as “affordable luxury”, on the one hand, to create high-end image used on the other hand, the relative prices of the People First looting people’s minds, and in the United States has adopted a retail shop and factory model of joint development, before quickly reversing the adverse situation, attracted a large number of customers. In recent years, its product lines from single to multiple, from handbags to shoes, scarves, watches everything, wallet, cosmetic products, such as attachment of the total revenue Sales revenue in 2002 rose from 13% to 23% around the current . November 2006, Coach introduced its first jewelry series, in March 2007 with Estee Lauder to launch a perfume line. With all the other luxury brands like to enrich the product selection to enhance the customer brand stickiness.

Annual compound sales growth of 20%

In 2000, Coach independent from the parent company and listed on the NYSE in October. The main “high-end image, the People First Price” and “affordable luxury” positioning has been the success of Recognition of financial markets. 2.5 U.S. dollars from the opening to the end of 2007 closing price of 30.58 U.S. dollars, 7 years time, Coach shares rose a total of 1123%. At the recent 5 years, its share price performance is far better not only in the S & P 500, and the rate of return over the same period is also higher than luxury goods giant LVMH and Tiffany like luxury brands.

From the 2000-2007 fiscal year, Coach’s sales compound annual growth rate of more than 20%. As of the end of June 2007, Coach’s annual sales of more than 2.6 billion U.S. dollars, revenue was slightly less than Gucci’s three billion U.S. dollars, but higher than that of other same handbag business mainly to competitors, Hermes 2.2 billion U.S. dollars and Tods8. 400 million U.S. dollars. Stock prices rose and sales growth of the scale also president of Coach’s fiscal 2006 revenues reached 44.4 million U.S. dollars, the income level and larger scale than the Coach of the Goldman Sachs and other Wall Street big brothers of the president of a considerable, almost two Citigroup president many times.

At the same time, Coach in recent years, sales growth and net profit growth are far better than Hermes, showing strong momentum of growth. Prior to 2002, Coach’s sales revenue and net profit were lower than the Hermes, in 2006, these two indicators are more than Hermes. Not only on the rapid expansion in scale, Coach’s is also a substantial increase in profitability, operating margins in fiscal 2007 reached 49.1 percent, much higher than LVMH, Gucci and Hermes and other brands 30% figure.

Quality similar to the low price compared with other luxury brands, a relatively low operating costs are Coach realize the main reason for higher profits. Coach on the one hand, the traditional stronghold of the European luxury brands do not have any stores in the European market to avoid huge investment in basic construction costs and operating costs. On the other hand, apart from its production base outside the United States, many concentrated in China, India and other countries with lower labor costs.

“High-end image, the People First Price”

Regardless of financial data or stock price performance, Coach luxury goods industry in recent years in performance are worth noting, “affordable luxury” positioning both the unique achievements of the Coach, is also the industry as a whole set off a trend. For Coach, “the high-end image, the People First Price” is the difference between the concept of short layered pricing strategies and sales channels on the use of retail and discount stores in two forms, both conducive to high-end to create the image, but also the convenience to meet the needs of different consumers.

“No discount” luxury experience

Coach at the official website, different style, size handbag prices from 128 U.S. dollars to 500 dollars, and in its stores, the consumer will see the price of 1900 U.S. dollars of pattern small backpack, the old price with the LV Manhattan Flower Series package (MonogramCanvasManhattanGM) about the same. Recently, Coach 10,000 U.S. dollars price tag affixed to a name on Alligator handbag. And in a very long period of time, whether it is at its founding in 1999 on e-commerce website on, or in stores, Coach and LV have been taken the same strategy, and never discounted.

High-priced merchandise only luxury Coach to show one aspect of the image. Coach of the faithful in many fans eyes, Coach is not only the design and quality merchandise at up with Gucci, Versace and Dior brands, such as about the same, they can also shop at Coach’s special to enjoy the same feel distinguished. Flagship store brands are well aware of “face” of the CEO at Frankfurter Soon after assuming office on Coach stores have been renovated, redesigned image ads. Currently, Coach’s flagship store are much located in the world’s most expensive commercial rents Center, passed on to consumers “Coach is one of them” message. In the United States, many of the Beverly Hills mansion and a luxury brand gathered on the Madison Avenue Coach can see a big “C” logo letters. On Madison Avenue business area of 836 square meters of the flagship stores are Coach stores in the biggest one, and one block in the near addition, LV shop window is always stocked with the latest quarter payment.