What Are the Driving Forces for Coach’s Industry?

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What are the driving forces for Coach’s industry? Coach, Inc. is a luxury fashion company that got its start manufacturing small leather goods. Coach’s strategy created the”Accessible” luxury market. Basically, A Company’s external environment including Industry and competitive environmental conditions which is operating environment and driving forces acting to reshape this environment. In terms of the external environment of luxury goods industry, the world’s most well-to-do consumers spent more than 224 billion dollars on luxury goods in 2010, U.S. represented 30 percent of industry sales. Luxury goods market is a huge market for Coach. Besides, The global luxury goods retail market was significantly affected by the economic slowdown and financial crisis of 2007-2009 as consumers in most income categories cut back on discretionary purchase. However some emerging market especially China and India become a key growth in driver for luxury goods industry. Chinese government uses open-door policy and economic reform. These favorable policies promote the repaid economic and social development in China. Chinese market is becoming a big opportunity for Luxury goods industry. However, Luxury goods industry also faces many challenges especially counterfeiting. It was estimated that between $300 and $600 billion worth of counterfeiting goods were sold in countries throughout the world. Driving forces are the major underlying causes of changing industry and competitive conditions. First of all, the growing demand for luxury goods in emerging market especially China provides a major boost to the luxury goods market. Therefore, Luxury goods companies should not only focus on traditional market like American and European market but also International market. Coach clearly aware of the conditions of luxury goods industry. Coach pays attention to international market. The company

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