Coach handbags is now maintaining a thriving business for their bags in outlet centers, unlike their main rivals. This may sound like great news for Coach but the downside is that investors and stockholders are worried that selling in an outlet center can undermine Coach's luxury identity.
In 2005, Woodbury Common, an outlet center outside of New York, generated $20 million in sales. Coach representatives say that careful consumer research shows that full price buyers and discount shoppers are very different and that they are appealing to both groups.
The breakdown done by Coach researchers show that the discount shopper of their handbags is usually early to mid 40's and is a professional woman with children. The full price buyer is generally around 35 and is either single or newly married and working.
Coach handbags continue to be a benchmark in quality bag construction and consumers will continue to buy, either in outlets or full price retail stores, as long as this excellence of construction remains important to Coach.
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