International luxury distribution: Coach and Polo Ralph Lauren

Résumé du document

A comparison between two garment companies has been undertaken in order to understand the brands and their international significance in all areas of growth, distribution, profit and finally the end-users i.e. satisfying the consumer demand. The two companies that have been targeted are "Coach" and "Polo". Excerpts from this comparison are:
Focus on International Distribution:
The aim for both brands is to increase and enhance the international distribution chain.
Coach: Prime focus will be on US & Japan markets, with a scarce presence in other countries, especially in Europe.
Polo: As it is inclined towards global expansion in Europe and Asia (GCR, JP, Korea, Russia, etc), its attention will be deviated towards this area.

Penetrating into new markets:
Coach: Aims at increasing the product selection and location thereby making it more widespread.
Polo: A contradicting statement highlighting the importance of maintaining limited assortments and locations.

Brand Strategy:
Coach: Confirms that a single brand will soon gain momentum in the business and provide acceptable Return On Investments.
Polo: Its understanding is that multi-brands need to be maintained. It would involve an extensive vertical expansion as against Coach.

Brand Positioning:
Coach: The products are trendier and suit the modern era. Further, they are accessible and affordable for the middle class sector.
Polo: The designs offered by Polo are the classic and elegant patterns. Its target market zone is the higher end segments (i.e. the higher middle class income group).

Design Philosophy:
Coach: Use young, well-known designers for seasonal collections.
Polo: Focus on in-house designers.

Extraits

[...] The reasons to coach's CEO satisfaction : The company is more efficient then her competitors (coach have margin of 34%. Hermes 27% and Burberry 20%). The company is already in her final steps to operate in China and other emerging markets. The rapidly increase in the U.S. average income and the standard of living. The company signed an agreement with for opening 30 new stores in 2 years. is the largest owner of high quality retail real estate in malls. [...]

[...] International Luxury Distribution Agenda Coach Polo Ralph Lauren Comparison of Coach and Polo Ralph Lauren An American Story The COACH Brand Essence Quality, authenticity, value and a truly aspirational, distinctive American style. Heritage Original American attitude and classic design. Fine leather material and custom fabrics. Highest standards for workmanship. Proprietary hardware. Equities Leading position in “accessible luxury” Relevant innovation Exceptional value Loyal consumer base Business Philosophy Brand Defining classic American style Proposition: Accessible luxury Product Balanced Design Multi-product platform Tiered merchandising Relevant innovation Distribution: Multi-channel, international distribution. [...]

[...] Leveraging licensee partners. Comparison of Business Strategy Brand strategy Coach: Single brand. Polo: Multi brands. More vertical extension than Coach. Brand positioning Coach: Modern, fashionable. More accessible and affordable. Polo: Classic, elegant. [...]

[...] Polo: more interested in global expansion in Euro and Asia (GCR, JP, Korea, Russia, etc). Factory outlet penetration Coach: more selections of product and locations Polo: limited assortments and locations Comparison of Distribution- Difference Online Coach: US and Japan delivery only. Polo: International delivery. Retail-DOS Coach: More aggressive expansion Polo: More selective in locations Licensing Polo: Try to buy back the licensing rights. For example: Polo Jeans and footwear. Comparison of Distribution- Similarities 100% of outsourcing in production. Going to international market places. [...]

[...] At higher end segments. Design philosophy Coach: Use young, well-known designers for seasonal collections. Polo: Focus on in-house designers. [...]