Is Coach planning to become a multi-brand fashion giant?
Recent news, as widely reported by the fashion press, suggests that Coach, Inc. is preparing to make numerous acquisitions in an effort to become a leading multi-fashion brand similar to European leader LVMH-Moet Hennessy Louis Vuitton.
While Coach, Inc. has considered acquiring Kate Spade and Burberry in the past, it is yet to pull the purchase trigger —though the strategy to do could potentially benefit shareholders, providing the company does not overpay for its acquisitions.
However, in preparation for an acquisition of any kind, Coach, Inc. created a new position of President/Chief Executive Officer for Joshua Schulman (previously of Neiman Marcus Group), moving the current President (Ian Bickley) into the role of President, Global Business Development/Strategic Alliances.
Of course, this was not an overnight business decision. Coach has been preparing for this metamorphosis by beefing up its marketing department with Carlos Becil and Nicolas Cormier and investing in its stores via product innovation, improved pricing and a cost-effective global sourcing plan for several years—actionables the company will continue long-term plan in an effort to drive sales and operating margins, as well as expand its global distribution model into untapped markets.
So far, the company has successfully systemized its North American operations by increasing its sales of products priced $400 and more, decreasing its in-store sales to lessen customer expectation and closing faltering stores to focus on stronger markets.
Copyright © 2023 FashionNetwork.com All rights reserved.