Luxury goods industry based on high quality goods with high price along with brand recognitions, as customers need to feel good about spending their money. The industry includes drinks, fashion, cosmetics, fragrances, watches, jewelry, luggage, handbags.
The competition in this industry is intense as the differences between the companies becoming less, and the market it self is expanding, therefore, it is important to gain a better section of the market share to maintain sustainability. For instance, Companies are using the internet, among other methods, to introduce their newest catalogues.
Also using a new method of pricing & offer economy level of product, plus offering the good in accessible locations and easy to reach for customers will increase selling average.
The market for luxury handbags and leather accessories is changing rapidly, this is due to fact that generations are changing, plus that the basic income of the average population is becoming high, thus, the middle class is becoming involved in such products.
Key factors that determine the success of makers of fine women handbags and leather luxury products can be brand image, quality, and price accessibility over a large range of economic classes, effective advertisements, product display, innovation and country of origin.
All these factors builds up the market segment for a company involved in the business of women handbags and leather luxury products.
Through 2000 and 2006, Coach Inc. implemented a new strategy in order to increase its sales, market shares and to become one of the major competitors in the ladies handbag and leather accessories industry. Coach Inc.’s new strategy keyed to “Accessible” Luxury. Coach created the “accessible” luxury category in ladies’ handbags and leather accessories by matching key luxury rivals on quality and styling, while beating them on price by 50 percent or...
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