Watch out Coach, there’s a luxury brand in town that has big ambitions to rock your world.It’s the fast-growing Michael Kors, which recently went public with a near-billion dollar IPO.
Cotten Timberlake at Bloomberg reports on how closely it wants to compete with Coach (emphasis ours):
“Michael Kors Holdings Ltd. aims to more than double its North American store fleet to 400 and more than quadruple to 1,000-plus its department-store boutiques. Michael Kors will operate in malls and street locations, like Coach, sell accessories-heavy collections, like Coach, and focus on “accessible” luxury, yes, like Coach.“
Coach is trying to “climb” the fashion ladder, while Michael Kors is trying to make itself more affordable. The two brands will compete more directly as that gap decreases.
And of course, that could yank away a bunch of Coach’s customers in one of the luxury industry’s fastest-growing categories, handbags and accessories.
Will Michael Kors succeed?
It will be an uphill battle to top the dominant Coach — a brand that is firmly entrenched as the long-time market leader in that important handbag segment — but the upstart is showing some serious audacity to take on the massive brand head-to-head.
NOW WATCH: Ideas videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.