Coach 2011 Annual Report Download - page 6

TABLE OF CONTENTS
A Market Leadership Position With Growing Global Share — Coach is a global leader in premium handbag and accessories.
Each year, as our market share increases, our leadership position strengthens. In North America, Coach is the leading brand. In
Japan, Coach is the leading imported luxury handbag and accessories brand by units sold.
A Loyal And Involved Consumer — Coach consumers have a specific emotional connection with the brand. Part of the
Company’s everyday mission is to cultivate consumer relationships by strengthening this emotional connection.
A Multi-Channel International Distribution Model — This allows Coach to maintain a critical balance as results do not depend
solely on the performance of a single channel or geographic area. The Direct-to-Consumer channel provides us with immediate,
controlled access to consumers through Coach-operated stores in North America; Japan; Hong Kong, Macau, and mainland China;
Taiwan; Singapore and the Internet. Beginning with the first quarter of fiscal 2013, this channel also includes Coach-operated stores
in Malaysia and Korea. The Indirect channel provides us with access to consumers via wholesale department store and specialty
store locations in over 20 countries.
Innovation And A Consumer-Centric Focus — Coach listens to its consumer through rigorous consumer research and strong
consumer orientation. Coach works to anticipate the consumer’s changing needs by keeping the product assortment fresh and
relevant.
We believe that these differentiating elements have enabled the Company to offer a unique proposition to the marketplace. We hold the
number one position within the U.S. premium handbag and accessories market and the number two position within the Japanese imported
luxury handbag and accessories market.
PRODUCTS
Coach's product offerings include women’s and men’s bags, accessories, wearables, footwear, jewelry, sunwear, travel bags, watches
and fragrance. The following table shows the percent of net sales that each product category represented:
Fiscal Year Ended
June 30,
2012
July 2, 2011 July 3, 2010
Men’s & Women’s Handbags 65% 66% 65%
Accessories 28 27 26
All other products 7 7 9
Total 100% 100% 100%
Handbags — Women’s handbag collections feature classically inspired designs as well as fashion designs. Typically, there are three to
four collections per quarter and four to seven styles per collection. These collections are designed to meet the fashion and functional
requirements of our broad and diverse consumer base. Men’s handbag collections include business cases, computer bags, messenger-style
bags and totes. In fiscal 2012, we introduced the new Hamptons Weekend and Willis collections, and made updates to our Poppy, Madison
and Kristin collections. In early fiscal 2013, we launched a new dual-gender Legacy lifestyle collection, inspired by our heritage, grounded
in leather and featuring distinctive Coach elements. Legacy, our largest product launch in many years, is an iconic lifestyle collection which
provides a foundation for the brand, targeting multi-generational consumers whom are both classic and stylish in their preferences.
Accessories — Accessories include women’s and men’s small leather goods, novelty accessories and women’s and men’s belts.
Women’s small leather goods, which coordinate with our handbags, include money pieces, wristlets, and cosmetic cases. Men’s small
leather goods consist primarily of wallets and card cases. Novelty accessories include time management and electronic accessories. Key
rings and charms are also included in this category.
Wearables — This category is comprised of scarves, jackets, gloves and hats, including both cold weather and fashion. The
assortment is primarily women's and contains a fashion assortment in all components of this category.
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