Kate Spade's Luxury Handbag Brand

There is continuous debate of what luxury handbag brand is on top of the list. For the past few years the racking has stayed consistent with Michael Kors, Coach, and then Kate Spade. There are financial and behavioral factors that determine why Kate Spade is behind is competitors. In the terms of financial performance Kate Spade is behind both Michael Kors and Coach. “In 2015, Michael Kors had a revenue of 4,712,100, Coach had profit of 4,491,800, and Kate spade as 1,242,720 (Growth Value Prospector, 2016)”. While Kate Spade had the lowest profit the revenue amount has always increased over the years instead of having the problem of profit loss. Another factor is that Kate Spade is a smaller operated company with 140 stores compared to its competitors such as Michael Kors with about 1,347 stores (Bells, 2016). Kate Spade has limited their target market to mostly millennials through the products being more colorful and having extrinsic designs (Bells, 2016).

It is important to please the initial consumers because in return they influence new and other retuning consumers buying choices. How the consumers think, feel, and reason then selecting different alternatives could be an issue because these are factors that the company is not aware of and gain an insight of what consumers are actually feeling toward the product. If the consumer has a bad experience with a product or at a store that will have an influence on their future buying choices. The limitation of consumer knowledge of the product could have an influence on their buying behavior, and assumptions can easily be made. Also, there is the factor of if the marketing campaigns and marketing strategies have effectively reached the