History Of Coach, Inc. The Coach Brand

2039 words - 9 pages

History of Coach, Inc.
The Coach Company first started in 1941. The staff consisted of six people who worked to make a leather collection of handmade wallets and billfolds in Manhattan. The techniques these six people used were passed down from previous generations. Patrons started to look to Coach “for their high-quality and unique craftsmanship.” (Coach, Inc. History) Miles Cahn worked for the Coach Company and was later promoted and ran the company in 1950. The company was known for making quality products rather than being in the business of maximizing profits. (Coach, Inc. History)
Coach used ideas they found from worn-in baseball gloves. Cahn tried using the qualities he found from the gloves as a way of producing Coach leather goods. Among these qualities was crafting the leather in a way that would make the products “strong, soft, flexible, and deep-toned in color, as it absorbed dye well.” (Coach, Inc. History) Using this method, it set Coach apart from the rest for its distinct method and long lasting products.
After running the Coach Company for ten years Cahn decided to buy out Coach and keep with the traditional, non-trendy products that the Coach brand was known for. In 1980 the Coach Company held four floors in a shop on 34th Street in New York and had expanded their product line to purses and briefcases as well. Towards the end of the 1970s Coach began mailing products and opened specialty stores in order to spread to more than department stores. This increased the sales but caused a problem for Coach when the demand became too high for supply to keep up. The Cahns’ purchased land in Vermont in order to start a farm, but once they realized the travelling back and forth was too much and none of their family wanted to take over the company that they had owned, they decided to sell the Coach brand to the Sara Lee Company. The Cahns’ got $30 million for the company and gave full control to Sara Lee. (Coach, Inc. History)
Once Sara Lee took over management the Coach Company expanded. Many new styles were added to the Coach line, and the channels used to sell the products also increased and diversified. Under the new management, Coach started to be sold in Macy’s stores along with many more states. “By November, the company was operating 12 stores, along with nearly 50 boutiques within larger department stores” and with this was a 45 percent sales boost since the year before. (Coach, Inc. History) With this increase Coach doubled the staff, got more space, and added to the work week. With the increase of demand Coach decided to keep its reasonable prices. The company soon after opened a production plant in Miami in order to help the distribution problem. In 1988 Coach decided to move the company to the overseas market and this became 10% of Coach’s revenue. (Coach, Inc. History)
After moving under the management of the Sara Lee Company they had a $521.4 million increase in their revenue. The IPO started to climb in 2000 as revenues...

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