Victor Luis, chief executive of Coach, said the company plans to stop the sale and close the poor performance of the stores, will focus on product design and product quality.
Coach is trying to fix the business model. Coach committed a classic mistake, that is, the use of brand reputation fell into many of the rapid development of the retail brand common trap: business rapid expansion, a large number of stores, the use of discount to retain customers. The end of the negative effect is that consumers will no longer pay for the price of $600 Coach handbag.
“Coach is a typical company that has been successful,” says Helgesen Hkon, a retail analyst. Its products have become ubiquitous, it is as a luxury for most unacceptable things, exclusive luxury concept has gone. ”
According to Morgan Stanley, said, now, Coach take 17% share of handbag market in the United States. Two years ago, it accounted for 24% . However, the company is trying to correct its error. Coach has been in the decoration of the store, to reduce sales and provide the new design. These efforts seem to have worked well. For the Coach brand, the recent quarterly turnover fell by 9.3%. Compared to last year, the company’s two digit decline, has improved.