Coach 2012 Annual Report Download - page 6

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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