Coach Case Study : Coach Inc.

854 Words Jul 30th, 2015 4 Pages
Coach Inc. (Coach) was founded in 1941 by Miles Cahn in New York. Coach had a humble beginning as a family business selling quality artisan handbags, and has grown to a well-known luxury brand. Sara Lee (a food and consumer goods producer), acquired Coach in 1985, and in 2000 the company was listed on the New York Stock Exchange. Sara Lee sold Coach 's existing shares in 2001 and has since split into two companies, one of which forms Hillshire Brands (Soni, 2015). Coach is well known for their high-quality handbags and leather accessories and is "one of the world 's leading fashion accessory brands" valued at over $10 billion (Soni, 2015). Coach is considered one of the pioneers of the luxury industry with their 'affordable luxury ' strategy. Coach is able to offer their line of affordable handbags and accessories at 50% less than luxury goods competitors. Although most well-known for their leather handbags, Coach 's line of products also includes women 's and men 's apparel, footwear, watches, and other accessories. Coach 's 2014 sales were broken down as follows: 55% women 's handbags, 22% women 's accessories, 14% men 's products, and 9% all other items (Soni, 2015). Coach has licensing agreements with Jimlar Corporation for their footwear line, through Luxottica for their sunwear collection, with Movado for their watches, and Estee Lauder for their fragrances (Soni, 2015). Licensing revenues amounted to $27.9 million in 2014 (Soni, 2015).
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