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Coach Essay

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Submitted By cupoa1
Words 5507
Pages 23
Albert Cupo
Coach Case
2/22/13
1. The defining characteristics of the luxury industry in 2012 are a cross between a status symbol and desire for luxury goods because of extra disposable income. In the past year going forward, a projective increase of millionaires brings people on a search for optimal quality and specific brand preference. People will only be willing and able to afford such products such as these in the luxury sector if the income presents itself. As people make less money because of the economy and layoffs, the less these companies will make. This is a perfect example of the elasticity of demand in relating to income because of the rather high involvement purchase decision to which people will certainly not think of parting with a large sum of money when they have to provide for their families. In the present years, people desire to outdo each other especially in the middle class with a “fake rich” mentality where people want to make believe they have money. Luxury goods have become a gateway to competition amongst the younger generation where parents are seen spending innumerable amounts of money on their children so they can be seen as fashionable in school. This is great news for the Coach Company to expand their line even further to cater to a younger crowd of consumers. Coach already has an advantage in their line of handbags for the fact that their price point is nowhere near Louis Vitton or Fendi. Overall, the industry is nothing more than a symbol of status no matter what the age group in the target market. People do not go into Coach’s flagship stores to save money because they believe that it is an unbeatable deal that you can’t find anywhere else. This is why a store such as Marshalls exists for that type of mentality. This defends the notion that the company could not be characterized in any other way except being a

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