Business Analysis: Industry Analysis Of Coach Inc.
The luxury handbag and leather accessories alone accounted for about $28 billion in 2010 (Thompson, C-77). Leading players in terms of annual revenue in the luxury industry include, Cartier, Hermes, Gucci, and Louis Vuitton. The key forces that drive the luxury brands in the industry include, high quality, brand reputation, creative design, and brand loyalty. Luxury brand goods were divided into three main categories in 2011, haute-couture, traditional luxury, and the growing submarket "accessible luxury." Haute-couture presented a very high end custom product offering that catered specifically to the extremely wealthy individuals. Traditional luxury categories were the second segment, these included, fashion design houses such as Prada, Burberry, Hermes, Gucci, Polo Ralph Lauren, Calvin Klein, and Louis Vuitton. Accessible luxury markets were the third segment in the luxury brand industry, these are luxury goods from players in the industry that created diffusion lines to compete with Coach. The accessible luxury brands offered customers luxury brand items at affordable prices. Brand rareness is another driving force industry, this heavily