KuoJung's Blog: Coach Case
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1. What are the defining characteristics of the luxury goods industry? What is the industry like?
There are some characteristics of the luxury goods industry include creative designs, high quality, and brand reputation to attract customers. The luxury goods market can divide to three categories: haute‐couture, traditional luxury, and accessible luxury. The haute‐couture offers extremely wealthy customers for high end “custom” products. Most tradition luxury goods companies also diffusion their lines in the accessible luxury. Luxury goods demand increase as the income increase. The luxury goods market is driven by the economic and wealth status. Due to the economic crisis in 2007‐2009, the global luxury goods market growth slowdown. Sales in US, Europe and Japan was declined during the economic crisis. However, sales in emerging market including China and India became a key growth driver for the luxury goods industry. It is expectable to have 7.8 percent annual growth through 2015 to reach $350 billion world sales. And, “Italian companies commanded 27 percent of industry sales, while French companies held a 22 percent share, Swiss companies possessed a 19 percent share, and U.S. companies accounted for 14 percent of industry sales.”
▼ 2014 (8)
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2. What is competition like in the luxury goods industry? What competitive forces seem to have the greatest effect on industry attractiveness? What are the competitive weapons that rivals are using to try to outmaneuver one another in the marketplace? Is the pace of rivalry quickening and becoming more intense? Why or why not?
To develop a new luxury goods brand in the market is...
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