Are Mid Ranged Brands like Coach Stealing Market Share From Gucci, Balenciaga, Chanel?
Women’s Wear Daily reports that Coach's iconic Tabby Bag has slowly crept up to be an iconic bag in the fashion industry. American Horror Stories has also featured the bag in one of their episodes titled, “tapeworm.”
In lieu of the price increases done by luxury brands like Gucci, Balenciaga, Chanel and others, there appears to be an alleged market gap in the fashion industry. This topic is a heavily discussed one among luxury YouTube commentators.
Furthermore, there have been recent talks for Coach and Michael Kors to join forces in order to create a large luxury conglomerate which involves Versace as well. However, the United States government is currently blocking the move as they feel the competition will be significantly less in the affordable luxury segment.
Is Coach really taking the fashion industry by storm?
Luxury commentator Super Dacob mentions that Coach is a brand of intrigue by the YouTuber’s followers. The comments section in the video are saying that the mid-range brand has offered good quality leather at an affordable price. The irony of the situation is that higher end brands are allegedly having major quality issues.
Currently, Coach has a chokehold in the US luxury fashion industry. They currently hold 36% of the market, which makes them quite a significant player. In Malaysia, their full priced items can range from (US$450-600) RM2,000 - RM4,000 for a handbag. To which, many may opt for them instead of a conventional brand like Louis Vuitton where their bags easily start from (US$2,030) RM9,000.
Women’s Wear Daily reports that the brand’s iconic Tabby Bag has slowly crept up to be an iconic bag in the fashion industry. It is duly noted that shows like American Horror Stories has also featured the bag in one of their episodes titled, “tapeworm,” where a model ingested a tapeworm in order to stay skinny.
Regardless, it is an interesting turn of events where the large industry players from Europe are seeing a steady decline in their sales. Kering, the owner of Balenciaga, Bottega Veneta, Gucci, Saint Laurent has reported a sales decline for the fourth quarter in 2023. Meanwhile, mid range brands have posted a significant boost in sales during the same period.
The article is originally published on our affiliate website, Business News Malaysia.
Johan Chairil