One Mistake Changes All
One major mistake by this once top aspirational brand and now they’re slipping down in sales.
Coach is experiencing downfalls in sales, and even Wall Street is “hedging its bets” on the company. What did they do wrong, you might ask? Luxury retail expert and president of Unity Marketing, Pam Danzinger states that Coach neglected their outlet stores and ultimately, “Coach overestimated how much its customers would spend, and priced its items too high“. This immediately made me think back to the article we had to read in COMM101 regarding Google and missing their expectations, due to releasing their third-quarter results early.
It shows that missing estimations are crucial. Coach now has to lower their pricing in order to appeal to consumers.
The decline in the popularity of Coach even shows out at the mall. Just a year ago, one would look left to right and see at least three Coach purses, but nowadays, it seems rare to see any bags from Coach. People have lost interest in the brand due to its high pricing and would rather buy other luxury products, like Michael Kors.
This definitely makes me wonder what the future will be like for this luxury brand, and whether or not they can revive their status. I’ll be following up on this issue for sure.
Original Article: Lutz, Ashley. “Coach Is Slipping Fast, And It Can All Be Traced To One Major Mistake.” Business Insider. 22 October 2012 Web. 17 November 2012. <http://www.businessinsider.com/coach-is-losing-its-value-2012-10>