Coach’s management team has a crazy idea for separating itself from competitors like Tory Burch and Michael Kors.
The brand could start selling insanely expensive handbags soon.
Executives from the brand told Women’s Wear Daily that it could start offering products that cost thousands of dollars. Coach just hired Stuart Vevers, an LVMH alum, as its new creative director.
“You can have a $5,000, $2,000, $3,000 Coach bag in the future,” Chief Commercial Officer Victor Luis said.
Coach’s bags currently sell for less than $600.
Selling luxury bags is a clear bid to beat mounting competition. If consumers start to associate Coach with more expensive product, its entire brand could seem more desirable.
Coach is losing customers to brands like Michael Kors and Tory Burch, which sell similarly-priced products that appeal to Coach’s customers.
Coach had said earlier this year it was going to try to get customers back by becoming more of a lifestyle brand and focusing on shoes and clothing.
It will be a challenge for Coach to market to consumers who would shell out $5,000 for a Coach bag.
For those prices, consumers could get a bag from more elite brands like Hermes and Chanel.
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