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Coach Case

In: Business and Management

Submitted By mrkris82
Words 3206
Pages 13
Kris Wackt (594101)
BUS499AA Strategic Management
February 15, 2015
Coach, Inc. in 2012 - Case Study 1. What are the defining characteristics of the luxury goods industry? What is the industry like?
The luxury goods industry has a handful of defining characteristics which include price, quality, style and reputation. The price does not seem to be the key differentiator among competitors in this market, but it certainly helps increase sales volume given the other defining factors. Quality is another key cog as consumers want the best bang for their buck. Given the price ranges for the luxurious products is far from inexpensive, the superior quality that is sought after helps justify the high price points. Styling is another emphasized characteristic in the industry. Each company is constantly trying to come up with the next “hip” style that will fly off the shelves. Even if there are copycats, it is incredibly difficult to fully copy the original, so being the first to market with a style that becomes popular, is important.
Brand reputation is a culmination of the aforementioned characteristics and then some. Strategic placement of stores, strong market research also play a factor in the reputation of the company’s in the industry. Customers consider their total experience from the point of sale through the use of product as a way to determine if they would go through that experience again. The luxury goods industry certainly wants repeat customers to continue purchasing their products, so the emphasis on the brand reputations is everything.

The luxury goods industry has experienced consistent and substantial growth lately, especially in the years following the economic slowdown from 2007-2009. Growth has continued in emerging markets which has led to increased sales overall. China has been a huge driver behind those increases so much so, that industry...

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