A few years ago, I attended a lovely baby shower held for the daughter of a dear friend. There were a few dozen female attendees, mostly middle-aged, mostly middle-class. I have many fond memories of that day and one rather odd one — I was the only woman there who wasn't carrying a Coach handbag. Seriously. I was the only one.
Coach lost all its lustre for me that day. Let's be real, there's no point in buying an expensive brand handbag if everyone already has one.
Seems I'm not the only one no longer interested in a new Coach bag. Coach sales have been slipping.
To combat decreasing sales, Coach is raising its prices. Believe it or not, the strategy makes sense.
While Coach has been focusing on the $200 to $400 handbag market, it's best-performing bags are the high-end ones, including the $1,200 Weekend Borough Bag:
By going after the next echelon of well-to-do consumers, the under-served upmarket, where the price of bags averages from $600 to $1,200, Coach has a better chance of carving out a lucrative new niche for itself.
Read more at Bloomberg Businessweek.