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COACH – Chapter 1: Introduction to E-Business and E-Commerce

Who are they? What business do they do?

COACH is an American luxury fashion brand founded in 1941 in New York City. The company originally specialized in handcrafted leather wallets and handbags, and today offers a wide range of luxury handbags, accessories, footwear, and apparel. COACH operates under its parent company, Tapestry Inc., alongside brands such as Kate Spade and Stuart Weitzman. The company sells products globally through both physical retail stores and digital channels.[1]

How have they progressed since initially going online?

• COACH launched its first website in the early 2000s, aligning with the “Consolidation” phase of e-commerce described in Chapter

• Initially, the website functioned as a brand catalog but quickly expanded into a full e-commerce store for direct-to-consumer sales.

• Today, COACH operates Coach.com and CoachOutlet.com, along with regional websites to support international markets.

• They also embraced mobile e-commerce (m-commerce) with mobile-optimized websites and a COACH app, offering product browsing, personalized recommendations, and online purchasing.

• Partnerships with luxury marketplaces such as Amazon Luxury Stores and Farfetch further extend their digital reach.[2]

How have they benefited from e-business?

According to Chapter 1, e-business refers to digitally enabling transactions and processes within a firm.

For COACH, this includes:

Data-driven marketing: Using customer purchase history to offer personalized promotions.

Improved supply chain efficiency: Tracking global inventory digitally to align production and distribution.

Enhanced customer engagement: Leveraging e-business tools like CRM systems, digital campaigns, and influencer collaborations.

Global coordination: E-business allows COACH to manage design, manufacturing, and retail operations across multiple countries in real-time.

How have they benefited from e-commerce?

Chapter 1 defines e-commerce as “digitally enabled commercial transactions between and among organizations and individuals”. For COACH, benefits include:

24/7 Sales Availability (Ubiquity): Customers can shop at any time, extending beyond traditional store hours.

Global Reach: Online platforms allow COACH to access customers worldwide, including areas without physical stores.

Direct-to-Consumer Profits: Selling through its website and app reduces reliance on department stores, increasing margins.

Omnichannel Shopping: Customers can buy online, pick up in-store, or return across channels, improving convenience.

Resilience During COVID-19: E-commerce sustained revenue when physical stores were closed, reflecting Chapter 1’s trend of the pandemic accelerating digital adoption.[3]

Business Model- Chapter 2: Internet Business Models and Concepts

COACH, as part of Tapestry Inc., operates as a global luxury fashion brand with a business model that leverages both traditional retail and e-commerce. Using the framework from Chapter 2, the company’s model can be broken into the following eight key elements:

1. Value Proposition COACH offers accessible luxury—high-quality leather goods and fashion at prices below top-tier luxury brands. Its digital platforms emphasize craftsmanship, design, and heritage while providing convenient global shopping.
2. Revenue Model The primary model is sales revenue from handbags, accessories, and apparel. E-commerce enables direct-to-consumer (D2C) sales through Coach.com and CoachOutlet.com, maximizing profit margins.
3. Market Opportunity The global luxury goods market is projected to grow significantly, with demand rising in regions like Asia. COACH targets middle- and upper-income consumers who value affordable luxury.
4. Competitive Environment Competitors include luxury brands like Michael Kors, Kate Spade, Gucci, and Louis Vuitton. COACH competes by offering quality at a more accessible price point and by expanding into digital-first markets like China.
5. Competitive Advantage COACH’s heritage in leather craftsmanship, strong brand recognition, and early adoption of digital retail platforms give it a unique advantage. Collaborations with celebrities and influencers also help attract younger demographics.
6. Market Strategy COACH employs an omnichannel strategy, blending physical retail stores with online platforms. Marketing relies heavily on social media, influencer partnerships, and global e-commerce marketplaces like Farfetch and Amazon Luxury Stores.
7. Organizational Development As part of Tapestry, COACH benefits from a strong organizational structure with shared digital platforms, logistics, and supply chain resources across multiple brands.
8. Management Team The leadership team includes executives with deep experience in luxury retail, fashion design, and digital transformation, ensuring strategic growth in both physical and online spaces.
9. Through this business model, COACH has successfully integrated traditional retail strengths with modern e-commerce strategies, ensuring long-term growth in a competitive global market.[4]

COACH- Chapter 3: E-commerce Infrastructure Summary

COACH, as a leading American luxury brand under Tapestry Inc., has successfully leveraged the Internet, Web, and mobile platforms to expand its global e-commerce presence. Chapter 3 highlights the role of infrastructure in enabling e-commerce, and COACH illustrates this in several ways.

First, the Internet and the Web provide the backbone of COACH’s digital business. Through Coach.com and CoachOutlet.com, the brand offers 24/7 global access to its products, taking advantage of the Web’s ubiquity and reach.

Customers worldwide can browse and purchase, supported by domain-based websites and secure web servers that manage transactions.

Second, COACH’s mobile presence reflects the rise of smartphones as the dominant access point to the Internet. The COACH mobile app and mobile-optimized sites allow customers to shop seamlessly, aligning with Chapter 3’s discussion of m-commerce as a disruptive force

. By integrating mobile browsing, payments, and push notifications, COACH taps into younger demographics who primarily shop via smartphones.

Third, COACH benefits from cloud computing to streamline its operations. Chapter 3 notes that cloud services reduce IT costs and improve scalability

. For COACH, this means efficient global inventory management, customer data analytics, and omnichannel fulfillment, connecting both online and offline stores.

Finally, COACH uses Web 2.0 features such as social networks, influencer marketing, and digital storytelling to enhance customer engagement. These tools not only drive sales but also align with the infrastructure theme that the Web has evolved into a social and interactive platform for commerce.[5]

In short, COACH’s e-commerce infrastructure—built on the Internet, mobile access, cloud services, and interactive web tools—illustrates how a traditional luxury brand can modernize its operations and succeed in today’s digital economy.[6]