For Coach, Affordable Luxury Is In The Bag
The company has also undertaken some ambitious expansion plans, opening 12 retail stores and one new factory store in the U.S. in the first quarter, with plans to open an additional 18 stores and three more factory stores this fiscal year. Within the last month, Coach has said it would introduce a line of women's cashmere and wool knitwear, as well as a new fragrance, which it is developing with Estee Lauder.
What's driving the company's popularity, luxury-marketing experts say, is a deft balancing act between looks that are chic, stylish, and just out of reach of many consumers. At the same time, Coach keeps its selection accessible so that they still "play in Peoria," said Patti Pao, head of the Pao Principle, a New York-based luxury-goods consultant.
"Women can feel comfortable in Coach--it's never over the top," Pao said. Neither are the prices: While the high end of its Legacy collection is near $800, bags start at around $160, and most are priced between $300 and $400.
"Rich people don't want to see their bags on sale, and they really don't want to see themselves coming and going, either," Pao said.
Coach addresses that by constantly introducing new bags into the merchandise mix. "So on one hand, it's all about scarcity," she said, "and customers think, 'I better buy it before it's gone!' But it's also about discovery, and it makes women want to shop more often, just to see what's new, and buy multiples."
Of course, it doesn't hurt that American women have gone nuts for handbags--a market estimated at about $5 billion per year. The NPD Group says women are buying an average of three new purses a year.
Recent Marketing Daily Articles
-
United Expands Loyalty Program To Businesses May 19, 10:13 p.m.
United Airlines is launching the MileagePlus Small Business Network, the first U.S. travel loyalty program that ... -
Champs Taps Westbrook For Ad Push May 17, 4:52 p.m.
When it comes to a spokesperson deal, if you’re a star athlete you don’t necessarily have ... -
Strategic Vision: Domestics' Strong Showing In Quality May 17, 4:47 p.m.
For several years there has been convergence in the automotive market. No, we're not speaking of ... -
Athenos Unleashes 'Cooking With Yiayia' Campaign May 17, 9:48 a.m.
Julia Child she isn’t, but Yiayia brings her own, trademark irascible appeal to a new series ... -
Gen Y's Favorites: JCPenney, Target, Walmart, Kohl's May 17, 9:07 a.m.
For all of Gen Y’s ballyhooed love of techno-shopping, it turns out that retailers have little ... -
Hanes Aims Destruction Videos At Gen Y May 16, 11:25 p.m.
In an effort to encourage Millennial men to slip into its new ComfortBlend socks, tee shirts ... -
FirstBank Expands Ad Campaign May 16, 11:11 p.m.
FirstBank is extending its TV advertising for the first time outside of its home state of ... -
Jennie-O Partners With 'Recipe Rehab' May 16, 1:07 p.m.
Jennie-O products are being featured in integrations in the popular “Recipe Rehab” show, and in a ... -
2 Audiences, 2 Approaches For Samsung Monitors May 16, 12:27 p.m.
When we get consumers to shell out money for high-end computer monitors, it’s important to give ... -
Meaty: Whole Foods, Smithfield Talk Healthier Hogs May 16, 6:24 a.m.
Looks like meat marketing is stepping center stage. Whole Foods Markets, in celebration of Animal Welfare ...
Be the first to comment on "For Coach, Affordable Luxury Is In The Bag"
Leave a Comment