Coach (Re)Loved: Walking the Tightrope of Luxury Resale
In 2021, Coach faced public backlash after a viral TikTok video alleged the company was destroying unsold handbags. This incident highlighted the unsustainable practices in the fashion industry, where over 85% of materials are incinerated or in landfills. Faced with this critical juncture, Coach chose to forge a new path in 2023 by launching Coachtopia, a sub-brand focused on circular fashion, targeting Generation Z at a lower price point. Coachtopia aimed to shift mindsets towards seeing opportunity in waste and taking an open-source approach to creativity. This strategic move represents Coach's attempt to balance sustainability goals with maintaining its brand value in the competitive luxury market. Coachtopia's launch raised questions about its potential impact on Coach's brand exclusivity and cachet. Will Coachtopia enhance Coach's image by demonstrating a commitment to sustainability and attracting younger consumers? Or could it potentially devalue the main brand's luxury positioning?
In completing this assignment, students should be able to:
1. Identify the stage of the product life cycle for different products.
2. Analyze a consumer segment and conclude if it is suitable for targeting.
3. Identify risks and create risk mitigation strategies.
4. Recognize benefits of launching a resale program and evaluate how it impacts brand equity.