During the fiscal year ending in June , Coach opened what it called its Pacific Rim flagship store in Waikiki, Hawaii, as a way to promote the brand to Asian tourists. In addition to continued international growth, the licensing of the prestigious Coach brand also came to the fore in the late s.
In the company entered into its first licensing agreement. It agreed to allow its name to be used on a line of watches to be developed by Movado Group. During fiscal a Coach leather phone case was introduced through a licensing deal with Motorola, Inc. The following year, a line of premium furniture bearing the Coach name was launched through a licensing deal with Baker Furniture Company. Sales and profits at Coach suffered from to as a result of the combination of the economic difficulties in Asia and changes in consumer tastes, particularly a shift away from leather and toward mixed material and nonleather products.
A revamp of the product line in aimed at reversing the sales slowdown, with an emphasis on attracting younger customers.
The core handbag line began to feature more colorful cotton twill and other lightweight fabrics, and while the company maintained its classic leather offerings, a number of slow-moving colors were phased out. Still more license agreements led to the introduction of Coach picture frames, eyewear, and footwear. Coach increasingly offered in its shops, stores, and catalogs lower-priced accessory items whose affordability enabled younger consumers to buy a Coach product.
The company also began remodeling its major retail stores in late , seeking to better showcase its new assortment of products. Another important development was the launch of coach. On the manufacturing side, Coach looked to increase operating margins by turning increasingly to outsourcing and shifting from domestic production to production in lower cost markets.
Whereas only about 25 percent of Coach products were produced by independent manufacturers in , around 80 percent of the products were made by outsourcers just two years later. Coach was clearly making a rapid shift from manufacturer to designer and marketer while making sure that its manufacturing partners maintained the level of quality for which the brand was known. While Frankfort was leading this revitalization effort, Sara Lee came to the decision to spin off Coach as part of its own reorganization.
By mid there were Coach retail outlets in the United States and 63 outlet stores. Prior to the IPO, the improved financial condition of Coach was already evident, as revenues for fiscal climbed 8. Through the IPO, 7. Frankfort remained Coach's chairman and CEO. In April Sara Lee fully divested itself of its Coach holdings by spinning off the remaining interest to Sara Lee shareholders. For the fiscal year ending in June , Coach had very encouraging news in its first annual report: net income had jumped In addition to accelerating the development of new products and new product categories, modernizing its store designs, and improving its margins through outsourcing, the newly independent Coach also sought to further expand its channels of distribution both at home and abroad in the early 21st century.
After opening 15 new retail stores in the United States during fiscal , Coach aimed to open 20 more new stores for each of the next two years. Overseas, Coach continued to concentrate on the Japanese market, mainly because Japanese consumers spend a great deal more on a per capita basis on handbags than American consumers. Already boasting 76 outlets in Japan department store boutiques and 14 retail stores--Coach sought to increase its presence in this important market by forming Coach Japan, Inc.
Through Coach Japan, the company aimed to add another Coach locations in Japan within two or three years. Another of the firm's growth strategies for the early 21st century was to promote the purchase of Coach products as gifts. It was already clear that a substantial amount of the company's sales were gift purchases, but the company felt it could take greater advantage of this fact by developing new products tailored to gift giving and by improving advertising and promotion.
One clear example of a product line perfectly suited to the gift-giving niche was jewelry, and in November Coach introduced its first jewelry collection in a joint effort with Carolee Designs, Inc. The silver jewelry line featured some items that combined silver and leather.
It seemed clear that Coach was well positioned to leverage its strong reputation for prestige and quality and its tradition of producing classic, and classy, products into a successful era of independence. Principal Subsidiaries: Coach Services, Inc. Maryland ; Coach Leatherware International, Inc. Toggle navigation. User Contributions:. Comment about this article, ask questions, or add new information about this topic: Name:. E-mail: Show my email publicly. We build on our world-class capabilities, deliver boldly on our corporate responsibility goals, and leverage our strengths, from financial power to digital expertise.
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Consumers seek out sites like Overstock. There are also many other websites that advertise themselves as outlets for Coach merchandise, but these are typically auction-style sales by secondhand retailers.
Buyers have no guarantees regarding the products they buy online and sometimes, it's nearly impossible to return the merchandise. Buying "Coach" bags online through auctions or on the street at markets can result in buying a fake, which is an expensive mistake.
Check out this photo list for some hints on what to avoid. If you are interested in purchasing goods from these sellers, visit an authentication site such as My Poupette first. These sites recommend auctions that sell authentic goods and point out counterfeit sellers you need to avoid.
Purse forums and blogs are other great resources to find out which online outlet sellers others have purchased from that sell authentic Coach goods. Even if you don't get the exact item or even the top-of-the-line item at a Coach outlet store, it is still from Coach. If you are a savvy shopper who does research, you can purchase great Coach bags and make your wallet happy at the same time.
Do your Coach shopping at a factory outlet and save more than you bargained for. Finding an Outlet Because of the predominance of non-authentic goods "knockoffs" , the safest method of purchasing Coach products at a discounted price is to purchase them directly from Coach factory outlet stores.
Savings Why are the outlet stores so popular? The Merchandise The items sold in outlets are not always of the same caliber as those sold in the upscale retail stores.
Limited Stock Outlet stores may or may not have additional stock on hand. Look at the Labels Each bag has a "creed" or imprinted leather label inside. If the serial number has two sets of numbers, with an "F" at the beginning of the second set, then the bag was made specifically for the factory stores. If the creed label has a stamped, round mark with a circle at the center, then the bag was made for a full price store but is now being sold in the outlet.
Look carefully: the mark can be very light, and may be found in different places on the label. Small items wallets, card cases, etc. If the label has a dot on it as well, then the piece was made specifically for the factory store. Returns and Exchanges If you need to return an item, keep the receipt and do not remove the tags: returned items must be in unused condition. Check Prices Carefully Outlet stores can - and do - list their bags for more than the original retail price and then advertise the outlet price as a deep discount.
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