Coach Case Study
1. What are the defining characteristics of the luxury goods industry in 2012? What is the industry all about today?
Today there are key defining characteristics of luxury goods industry such as pricing, quality, style, and brand reputation. The pricing of goods is based on economics, demand increases as income increases. Pricing is also determined by exclusivity, quantity availability, quality and location of the product. The quality of a product can help determine the price, but not always. Luxury goods have higher quality, which results in higher price from the workmanship, material, and labor to product good. Many luxury goods have a particular style that is unique to each brand. …show more content…
There will always be a market for luxury handbags and leather accessories because people like to display their status and material items. But the frequency of their purchase is not as often as it was. Since technology has advanced within the last ten years, it has made bargain shopping easier for the consumer. They can find a product they like in the store and then search on the Internet for the cheapest price. Smart phones are on the rise so people do not even need to go home and research their product, but can do it right in the store. Another change in the industry is that people wait until the item is on sale. They would rather wait until the season is over and purchase the product on sale than to purchase now for full price.
4. What key factors determine the success of makers of fine ladies handbags and leather accessories?
Key factors that determine the success of makers of fine ladies handbags and leather accessories are high quality products, accessibility, availability and innovation. Today consumers work hard for their money and they expect to purchase high quality products. Especially when consumers purchase luxury goods, it needs to be good quality. Coach is able to use high quality materials and lower their costs to provide consumers with high quality products for a reasonable price. Since today’s society is influenced by technology, there needs to be accessibility to see products. It is important to have a user