Coach Inc has recorded its all-time low for its sales in China. This is a problem that they have been battling for two years now. They were expecting an 11 percent outing but only 10 percent came out. Until now, there are still a lot of circumstances that affect the growth of the product in the region.
Among the many factors that affect the growth of the handbag company is the rise of other products. Competition such as Michael Kors and Kate Spade has affected their performance, as well. In North America, Coach suffered from a 27 percent decrease in its sales. This is too much considering that this region is the primary contributor for its revenues.
Although the company experienced a five percent increase in the first three months of the year, the losses that the brand is getting are already at straight four years.
This means that the increase is not enough to cover the losses that they have gone through. Right now, the plan is to work on the other regions of the world to keep up with the pace of the competition. They are looking at new markets in Europe and in Asia as a part of the plan.