For 72 years Coach has been selling their designer handbags, wallets, scarfs and accessories all throughout the US and internationally. It doesn't take a genius to figure out their target market is the female consumer between the ages of 25 and 40 (give or take a few years) with a middle-class income rage. Women in this target market are working and earning enough money to spend on a designer handbag.
But in recent years Coach has expanded their products to include a men's line offering stylish slim brief bags, weekender totes, shoes, belts and eye wear. Their target market is also the generation x and generation y consumer between the ages of 25 and 40 something.
Although Coach products are available to all consumers I don't think baby boomers find Coach products appealing. Consumers in this age group are between 49 and 67 years old and are more interested in saving for retirement then on purchasing a designer bag.
Coach USA and that dreaded word..."recession"
A recession is a period of economic activity characterized by negative growth, which reduces the demand for goods and services.
Unfortunately, Coach USA is in the retail industry and during a recession most all retail stores show some form of decline in sales. And because Coach markets it's products to the middle-class consumer, recession is a very bad word for the retail store.
Unlike supermarkets, discount stores and fast-food franchices during a recession people tend to spend on what they need and not on what they want.
In 2008, in the mist of our latest recession Coach CEO, Lew Frankfort told CNN Money that the high-end business "was not immune from slowing consumer environment" and that "luxury sellers are begining to feel the pinch." The truth is, when times are tough the middle-class consumer starts to think about saving more and spending less.
But having what seems to be the worst of the recession behind us I'm glad to see that Coach has not only weathered the storm but has yet again begun to prosper in the aftermath.
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