Victor Luis has been working in Coach Inc. for the past eight years and it has been a year since he has been the CEO of the company. He the international expansion of Coach Inc. and even though the former CEO, Lewis Frankfort (being at that position for 28 years) has stepped down, he is still involved as chairman of the board. Led by these seasoned fashion executives, Coach Inc. has a turnaround plan. The foremost step taken by the new leadership is to hire a new creative director, which is regarded by Luis as a great step towards improvement as it has provided the brand with fashion relevance like never before. Both the fashion and investment worlds anxiously await the first designs from the new regime.
In addition to the creative and design changes, the company has also focused to rebalance the products portfolio. In order to win back its customers, the officials have decided to expand the product line of the company to include clothing, accessories, and footwear. It is also decided to reposition the company as a lifestyle brand. In addition, the company has also decided to enhance the number of handbags that are marketed at 400 dollars or more. This step could act towards raising the average handbags’ price point.
This plan as proposed by the current leadership of Coach Inc. is very likely to be successful and effective. However, it should be noted that the success of this strategy would depend on the fact that the people like the new design. In this regard, it would prove to be very effective if new and talented designers are hired. The new hires should have a keen sense of fashion and should be well aware of the latest trends in the fashion industry. They should have the innate capability to design a wide range of luxurious and marketable goods. However, if the new products are not considerably fashionable, it will be really hard for Coach Inc. because its brand image will be totally compromised.