Coach Inc.: The Luxury Goods Industry

One of the strongest competition take place in this particular industry. Coach Inc., is constantly facing numerous competitors from around the world countries, France and Italy with authentic high quality brands such as Louis Vuitton, Gucci, Prada, and Hermes are always causing the competition to rise up. Also, brands that are becoming more trendy and popular now such as Michael Kors, Kate Spade, Armani Exchange, and Fossil are also entering into this race of luxurious styling products. A race that began when the financial crisis a few years ago led to a tremendous decline in sales primarily here in the U.S., Japan and Europe. Since then the competition grew stronger specially in new emerging markets that include India and Southeast Asia. The threat of new entrants and rivalry among existing companies are the two main competition forces that seem to have the greatest effect on the luxury goods industry. It is extremely difficult for those who are already in it become number one and remain in that position. And those who attempt to enter the industry find very quickly how hard it is to build up a reputation with a new brand name that could potentially compete in the big leagues. It takes some serious financial investment, commitment, and authenticity to create a luxury image that will make customers spend their money in it. One more competitive …show more content…
Most commonly these high-quality brands are adjusting pricing, or offering different products that would suit every every economy level. But the most important weapon being used all the time in this industry by every brand is the higher quality, because these brands know that customers will pay for the best quality they can get. Typically, in order to rise the quality along with the brand name and reputation celebrities are hired by these companies so not only their product image gets improved but also their