Coach is 70 years old as a brand and is making a concerted international push to expand its reach and turnover. It has big plans for Europe and their first European flagship store has just been inaugurated on September 7 at 41, New Bond Street. Coach is well established in America as a marketer of luxury lifestyle handbags and other fashion accessories. In the US market it is in direct competition with premium apparel and accessories players like Polo Ralph Lauren, Liz Claiborne and AnnTaylor.
Coach has a clear strategy to expand its portfolio internationally. Its competitor Ralph Lauren has posted strong financial results for the year, based on its sizeable international operations including the rapidly growing markets in China. The Coach stocks are currently undervalued and have the potential to do at least 10% better. Their London flagship store is their first step in the international direction and they are making it count. They have exclusively created the ’41 Collection’ for the new store. It consists of three styles that pay homage to three different London neighborhoods.
Coach has planned a grand advertising campaign to back their expansion strategy. The New York themed advertising campaign will include print and outdoor advertising. They have plans to open many more stores across Europe. Coach will be pressing ahead with its affordable luxury positioning and is confident that it will be successful in the current economic scenario. Their comparable handbags for a $2,000 handbag costs only $325. Even brands like Gucci and Prada bags with similar designs would cost the customer $1,000.