Coach Launches Coach X Disney To Stimulate Full Price Product Sales

U.S.A

Coach CEO Victor Luis is implementing a strategy to make the brand more avant-garde and younger, so Coach launched the Coach x Disney series.

In the face of recession

Retail environment, Coach and

It has launched a series of leather products, including the limited handbags of Disney's classic cartoon characters. The strategy is mainly to promote the sale of Coach full price products.

Coach x Disney has been selling well since it was launched in June 17th. Several bags soon sold out on the online mall, including a Mickey Mouse Kiss Lock designed for a $395 bag, while another $1500 Mickey Mouse Doll and another handbag were soon snapped up.

Victor Luis said that for any fashion related cooperation, the company is very active, and the company is looking forward to the next cooperation with other brands.

Declining consumer demand and excessive discount activities have led to a decline in Coach sales for two consecutive years, but Coach is trying to regain its reputation in the industry. Coach is launching a series of new products created by creative director Stuart Vevers, aiming to win market share from competitors Kate Spade and Michael Kors.

Michael Binetti, an analyst at UBS, said that the sale of limited edition products could ensure that Coach would not exercise discount sales strategies, and limited products had higher "scarcity value", which could stimulate consumers' consumption desire more than coupons and other promotional activities.

Victor Luis said that Coach also promoted the brand with the help of American pop culture to attract more overseas consumers and foreign tourists. This year, the company set up 75th anniversary. The company plans to open a new flagship store in Fifth Avenue. The company believes that there are still many opportunities around the world, and the demand of international consumers is still unsatisfied.

But according to industry critics, it is hard to conclude whether the Coach x Disney series and the new series can save Coach. Although the new products designed by Stuart Vevers are very novel and avant-garde, they are less attractive to domestic consumers than foreign tourists, but the strong dollar makes the sales of products more difficult.

Christian Buss, an analyst at Credit Suisse Group, points out that the biggest problem for Coach is that it relies too much on handbag business. Handbag business occupies 80% of total sales, but the product category is still in recession stage in the industry.

Christian Buss said that Credit Suisse Group was very worried about the growth of Coach handbag sales in North America, because if handbag sales did not increase, it would represent a more challenging situation for Coach. At present, sales of Coach 60% came from discount stores, which is the problem of Coach.

Victor Luis revealed that Stuart Vevers's newly opened Coach 1941 line is mainly aimed at saving the company's past glory. It can help Coach increase specialized stores and attract more retailers, and also help brands reduce exposure in some low-end shopping malls.

Victor Luis stressed that Coach's brand younger is still in its infancy. The brand is working hard to launch new products, and it is also brewing new marketing methods. Coach will not decline, and Coach's efforts have just begun.