Coach Inc. (COH, Financial) recently announced that they will launch innovative limited edition series of their products, starting with a partnership with the Peanuts comic strip. The management has declared that characters from the Peanuts comic strip created by the late Charles Schulz will be the first theme in a series of limited edition projects initiated by Coach. Let’s dive in and find out what sort of innovation is around the corner.
What is the new strategy
Coach will launch the products at Colette in Paris and afterward would be available through its website. The collection would range from bags and small accessories to black leather Snoopy dolls being offered on its website. The collection would be embossed with the popular Peanuts characters.
COH’s executive creative director explained the idea behind this launch – “Coach has, for so many years, been an American institution so it seems fitting to honor that heritage with iconography that captures moments in American pop culture …. Peanuts and Snoopy were a rite of passage for a generation and continue to be so emotive. I was intrigued by the idea of taking that image and playfulness but subverting it. A rebellious spirit is contrasted with reassuringly natural Coach leather to create something unexpected."
Coach has been struggling with its financial numbers and is adopting strategies to put the company on the road to improve its brand image. The management urges to reset the company’s branding from an “accessible luxury” brand to a “modern luxury” brand. This innovative step is a part of the new strategy taken by the management to grow both its top and bottom line.
A huge positive for the financials
COH is a highly profitable company with an iconic brand which operates in a highly-profitable business that is likely to recover, though it has not being doing well for the past few quarters.
It’s true that the brand has been struggling for its past missteps, but this unexpected announcement will surely serve as a huge positive for the company.
It shows that the company is daring enough to move their brand forward with bold ideas. The strategy of issuing limited edition products has long been extraordinarily successful for another retailer who was struggling to pull up its sales in the 1990s, Nike Inc. (NKE, Financial). So, it can be concluded that this partnership could boost the exclusivity of the brand and enhance Coach’s brand image in the long run.
The company’s bold step might invigorate their brand with new partnerships with other iconic brands as well in the near future. So, COH is not disappearing and will thrive with their new strategic direction in the intermediate and long term.
Concluding words
As the company is taking adequate steps to transform its brand, investors should be encouraged to hold to their positions as the company expects to reward its stockholders in the long term. As COH takes this innovative stride, it’s a sure buy-now stock for the long term.
