Michael Kors looks to make a big impact in the American marketplace this year, and fashion forecasters predict it’ll be bad news for Coach.
Michael Kors Holdings Ltd. wants to more than double its North American stores to 400 and more than quadruple its department store infiltration. We should see its products in more than 1000 high end retailers soon. Shoppers can indulge in Michael Kors goodies in popular shopping strips and malls. The label’s collections will focus on accessories, and celebrate “accessible luxury.” Is it starting to sound like another label we know and love? That’s right; Michael Kors is taking a few tricks from Coach’s playbook.
Both companies could theoretically thrive, but Steven Dennis of Sageberry Consulting says Michael Kors push could have devastating results for Coach.
“This is the first mega-brand emerging to take them more or less head on in a direct hit,” he explained. “That’s definitely going to impact Coach’s business.“
Michael Kors is certainly a brand on the up. Since it made its debut on the New York Stock Exchange three months ago its shares have more than doubled. During the same period Coach’s have increased by around a third.
Coach is refusing to comment on Michael Kors assault, which is probably the wisest strategy. Do you think the American company can ward off Michael Kors attack?
[Source: Crain’s New York]
[Image Source: Ed Kavishe/Wikipedia Commons]
