COACH to maintain price levels and its democratic luxury positioning
American premium leatherwear brand COACH announced earlier this week it would not increase its price levels despite growing price of leather and manufacturing costs in China, where, the company is currently producing most of its products. The company will maintain its democratic luxury positioning through a better sourcing of its raw materials.
COACH’s CEO Lew Frankfort indicated that, the fact that the company controls 80% of its production has been key to its success. He also stressed that 18% of its sales come from the product range priced US$ 400 and above, compared to a ratio of 10% previously.