Chief Officer Victor Luis of Coach, has had to turn to an American icon, Mickey Mouse, to form a new strategy to help the ease the industry-wide slump in handbags.
What is the plan that Victor Luis has come up with?
Using a much beloved icon, Mickey Mouse, in a fun manner. Mickey Mouse is being stamped onto the Coach bags with his tongue sticking out.
The placement of Mickey Mouse playfully sticking his tongue out will be stamped onto the leather goods is an integral part of the plan to revive the handbags by using limited edition designs, with pop culture icons.
Since launching this new campaign on June 17th, many of the items featuring the Mickey Mouse design, many have sold out. Some of those that have sold out include 4 different colors of the 395 Kisslock Bags, which are in the fun and playful design of Mickey Mouse Ears.
The large leather Mickey Mouse dolls and beanbags have also sold rather quickly in the amount of 1500.00 each. Mr. Luis was quoted as saying, “We’ve been very pleased with any time that we’ve engaged with fashion that’s been much more limited, emotional, inspirational, and goes on to say that we can look forward to the company having more collaborations going forward.”
Coach knew something had to be done to turn the tide and start reviving their product. They knew they had to overcome the competition, sluggish product demand, and steep discounts that has led up to a 2-year decline. In addition to implementing the trendy, iconic Mickey Mouse handbags, they have also revamped many of their stores, released many fresh designs from Creative Director, Stuart Vevers. They also knew they had to revamp marketing if they wanted to regain their customers from other major manufacturers such as Kate Spade and Michael Kors.
On a rebound from the last quarter, Luis is still cutting costs in an effort to turn around the companies revenue. In doing so, their stock rose by 22% so far this year, and boasted a 1.4 percent to 40.43. Coach believes that selling more limited edition items will help ensure they get top dollar for their products.
The company intends to flagship a store on Fifth Avenue, to play up the New York heritage. The American dream combined with the great American idea, and that the possibility for international consumers.
Even with all these ideas, and plans in place, only time will tell if Coach can come up out of the slump they are in. For Coach’s sake, since the handbags make up 80% of their sales.
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