a. Based on our findings, Coach Inc.’s main competitor seems to be Michael Kors Holdings Ltd. We compared the market share of the two companies, and for the fiscal year of 2015, Michael Kors’ market share stood at 17.43% which was greater than Coach’s market share of 16.71%. The interesting part is that Michael Kors had a considerably lower market share for the fiscal year of 2014, which stood at a low 12.5%. Coach on the other hand, had a market share of 18.14% for this year. These two companies seem to be the biggest competitors not just in the USA, but also in the world for women’s handbags. Coach does have more locations than Michael Kors at present, but Michael Kors seems to be doing better in terms of revenue at the moment because Coach recently shut down certain stores.
b.
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Designer Bags are losing its luster, meaning that people aren’t buying them as much as they used too, or don’t get as excited for them. As with all trends there are ups and downs, not everything lasts forever. Michael Kors (MK) is the top handbag for teens in the last couple years, replacing Coach, MK rose to popularity mainly because of their handbags. Although, MK sales growth has been going down, and the future doesn’t look as bright for the brand. We can see that because their inventory has risen, meaning that the product is not leaving the shelves as fast as they predicted. Another reason could be because the brand is being purchased too much, making them look cheap to some extent, as everyone has it. This might be happening because of MK’s use of outlet stores, which can sometimes be brand killing for the company, as outlets devalue products/brands, encouraging people to buy it at a cheaper price, making the product too accessible for it to be classified as luxurious. Michael Kors is also known to be considered an aspirational brand, with consumers paying premium price for the label, but once everyone has the product it is no longer considered to be ‘in’ in