Vera Bradley Executive Summary

Summary: Vera Bradley was created in 1982 by two women who enjoyed traveling. While they were traveling they discovered that many people had plain, boring colored luggage. This sparked the idea of creating a more stylish, eye catching luggage company. Vera Bradley has created a wide variety of products that are targeted towards women, some of their products include: “luggage, purses, wallets, cell phone and computer cases, jewelry, a wide variety of bags, lunch sacks, beach accessories, and baby clothing.” Vera Bradley has sold its products in a number of ways, through wholesale distribution, retailers, and online. Through these outlets they sell to department stores, specialty retailers, and factory outlet stores. They have 125 stores/outlets and 3100 indirect retailers. There total net revenue for 2015 was $508,990,000 which was split up between direct stores/outlets with about 66% and indirect retailers with the remainder 34%. Vera Bradley continues to increase their reach to its customers by expanding to more stores, producing new products, and creating new fashionable designs. All of their patterns are patented which gives

Their handbags and other merchandise is less than its luxurious high end competitors, however, many people cannot afford to pay for luxury purses and accessories so they purchase generic or non-name brand products that they can afford. None of its substitutes can give their customers the same unique designs, but price is definitely a factor when purchasing handbags, wallets, luggage, etc. Plus, there are thousands of cheap brands out there and readily available so it is easier for customers to purchase these items than it is for them to purchase Vera Bradley products. Therefore, Vera Bradley must continue to try pull in new customers that would usually purchase a substitute product because the threat is relatively high for the