Coach Inc.’s sales jumped this past year with a 34% increase on sales and have said that they are ready for the holiday season and beyond. Despite their lower pricing strategies and muted consumer spending, Coach has proved to significantly grow in developing markets. They are extremely thrilled with their success and even have plans to open up more full-priced stores in New York City. Also, because of their increase in sales, they plan to expand in China, where the country “represents the single largest geographic opportunity for Coach”. The article also stated, “Coach posted earnings of $188.9 million from $140.8 million and that revenue jumped 20%.”
I am actually surprised that their sales have increased because of the fewer amount of consumers buying products in general throughout this bad economy. I would also think that even though they are lowering their prices on their goods that they still wouldn’t increase their sales by much. However, I am proud of their strategies and think that expanding their stores across the nation and around the world will only feed them for even more success. Globalization is said to be one of the most effective factors of succeeding in a business, and I think that Coach will benefit from it. Do you guys think that they will continue to attract more costumers to their company, or do you think it will only be a “one-time success”?
http://online.wsj.com/article/SB10001424052702303390704575575881503013638.html?mod=WSJ_Retailing_leftHeadlines
Posted by Tania Dabdoub
I think expanding into China is a great move for Coach. As explained in my past post, Burberry expanded into China and saw a positive spike in sales. China is a place that can foster growth and sales for a company. Coach could see the same results as Burberry did. With Coach's sales already having increased, the company can use this momentum to begin effectively selling in the Chinese market.
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