A luxury brand could be defined as a business or an industry that deals with manufacturing, processing or distribution of goods that are considered to be a source of luxury and comfort. Economically, luxurious goods are those goods that play the role of adding to the basic life some comfort. Unlike basic needs, the demand for these goods increases when their prices increase. This is because their users would prefer the best quality to ensure that they in return have the best of their comfort from them. Industries and businesses that deal with these goods are call luxury brands. This paper uses a case of two luxury brands considering their comparison as well as their contrast to explore the field. The two luxury brands that the paper pays attention to are Coach and Louis Vuitton, which are examples of luxury brands.
It is a company found in America that offers goods made of leather. The company started by manufacturing small goods using leather and due to its devotion in the field, it later became a big company. Some of the products that the company offers include handbags designed for ladies, wallets and briefcases. Initially during its young age, the company has employed only six workers and the only products that were being produced were the wallets as well as billfolds. The method that was being used to produce these products was by us e of hands. It was started in 1941 in form of a partnership by members of the same family, Lillian and Miles.
The company has its operations mainly done in North America and in the International. The company has opened stores for its customers in North America. In the international world, Japan and China are the main countries that Coach, Inc operates where is sells its products through the internet as well as wholesale sales to some of the customers as well as distributors. The company has in the recent past developed and this has increases the market share in the leather industry. The company possesses a market share of 38% that has been witnessed after the financial crisis that the company faced from 2004 to 2007. The company has undertaken various initiatives in its business.
To begin with the focus on the company and its management from an international luxury brand dealer to a world-wide lifestyle brand, the company has improved in its management. The company has chosen to concentrate on menswear and has remodeled stores and technology to ensure that it wholly devotes its manufacturing to men. The company intends to sell its products and engage customers in both tablet as well as mobile devices that will widen and broaden the assortment that the company involves in its products. The major challenge that the company faces despite its focus to extend its brands, involves demolishing the roots it is built on. This is because it was started about 73 years ago and thus it becomes difficult for it to transform its image to a brand of fashion today that is relevant.
The company also faces stiff competition from other companies in the industry. Its focus in making the company a fashion brand makes it face some competition from other fashion companies such as Kate Spade. These fashion companies have been in the field for quite some time thus based on their long term experience, they are able to beat Coach, Inc, that is just entering the field. The attempt to enter into the field of fashion has been motivated by the American culture that founded on luxury. This has presented the company an opportunity to extend its operations.
Unlike Coach Inc, this is a company that offers a conglomeration of luxury goods. The earliest brand making up the conglomerate is Chateau d’Yquem, which produces wine and was started in1593. Unlike Coach Inc, LV is founded on French business mergers between Hennessy and Moet who produced cognac and champagne respectively. It was started in 1987 and has several subsidiaries that help the company in marketing its products. For Coach Inc, it has stores and internet sales services to extend its market but LV own some subsidiaries that it controls and manages on independent bases.
Some of the products that the company offers in the field of fashion are leather handbags, shoes, jewelry as well as trunks. The two companies share some similarities based on their products. The two offer handbags made of leather for the ladies making them competitors. Unlike Coach Inc, LV offers trunks and watches that are offered by Coach Inc. The earliest products that the company offered as it was being started are trunks and watches unlike Coach Inc, which offered wallets and billfolds. LV is located in Southern America unlike Coach Inc, which is located in the northern part of America. It has the largest market share in the fashion industry in the world unlike Coach Inc, which holds a third rank internationally in the market. While Coach Inc started as a partnership between Lillian and Miles, members of the same family, LV started as a conglomeration of multinational brands. Coach Inc has its roots on the ancient fashion but LV has its roots on the French culture.
The company has a share of about 61% of the market share, which is almost the double portion of the Coach Inc. while the value of Coach Inc continues to rise with the focus the management has to enter the global lifestyle of fashion, the value of Louis Vuitton decreases. This is because of the stiff competition it is facing from Gucci and Chanel companies, which are also global lifestyle fashion companies. The company has shown some interests in patronage and environmental care. This has not been depicted in the operations of Coach Inc. LV engages in activities, with coalitions and coordination with other companies to incite people to engage in practices that will protect the surrounding. The company’s focus is to create awareness to people to protect the environment unlike the focus of Coach Inc, which is to extend its operations to enter the global lifestyle fashion business.
Lastly, Louis Vuitton engages in collaborations and mergers to update their operations unlike Coach Inc that has values for its mergers at the start of the company. For instance, Louis Vuitton has formed a coalition with Japanese, Yoyai Kusama to improve on its operations. On the other hand, Coach Inc recognizes a merger that was formed by its starters and has realized any mergers to help it improve its operations, because of a strength that it has. The company has a strong and effective management that controls its operatio