Chapter 11 · Developing and Managing Products

For over 60 years, the words "classic american style" have defined the character and the spirit of Coach, Inc.

In the early 1990's, Coach's popularity grew with the belief that their "underestimated style, lacking in logos or obvious status symbols, was beginning to supplant the vogue for flashy designer goods." The company would then continue expanding their product lines, all the while keeping the qualities that made the brand prestigious.

To help the company grow as a brand rather than just a leather company, Coach hired a designer to create new products and lead a product development team. Since, Coach offered timeless staples in high quality, it meant that customers would rarely need to replace a product. To increase necessity for Coach products, the company focused on adding more color to their collections. 

Coach magazine ad showing a handbag
in a brighter color

Coach began to mail out brochures/mail order catalogs in 1992 in order to test market their leather outwear. By sending out brochures to former customers and their target market, the company showcased their ability to provide more than just handbags.While broadening their products, Coach also expanded their handbags, going from dark colors to those of a brighter hue. The demand caused the company to expand manufacturing to Puerto Rico, and in 1997, Coach entered a licensing agreement with Movado Group so that the Coach name could be used on a line of watches.The company later began to target younger consumers and remodeled major retail stores to better display new products.

Coach, Inc. developed new products and new product categories rapidly, and remodeled stores to give off a modern vibe. Outsourcing provided an improvement in margins, since the company was now seeking production in low cost markets. Coach began expanding their channels of distribution, eventually developing a multi-channel distribution strategy. There are over "500 Coach stores in North America, over 400 directly-operated stores in Asia, and 20 in Europe", boutiques are located in department stores and specialty retailer locations in North America, and there are "distributor-operated shops throughout the world." The company has websites in the U.S., Canada, Japan, and China.

Sources: Company Profile