There is a recent trend right now among aspirational retail brands; most of them are in crisis.
Companies like Ralph Lauren, Coach, and Michael Kors have reported disappointing earnings recently. Shares for all three companies have declined in the past year. And their struggles can be traced back to one mistake: opening too many outlet stores.
Outlet stores sell the labels' clothing for cheaper than department stores, giving the brands a wider audience. However. accessibility is a 'kiss of death'.
Michael Kors, like Ralph Lauren and Coach, is considered an aspirational brand, with consumers paying a premium for its label. Once everyone has the product, it is no longer considered cool. Once it lost its 'cool' factor, the price tends to go down.
Companies like Ralph Lauren, Coach, and Michael Kors have reported disappointing earnings recently. Shares for all three companies have declined in the past year. And their struggles can be traced back to one mistake: opening too many outlet stores.
Outlet stores sell the labels' clothing for cheaper than department stores, giving the brands a wider audience. However. accessibility is a 'kiss of death'.
Michael Kors, like Ralph Lauren and Coach, is considered an aspirational brand, with consumers paying a premium for its label. Once everyone has the product, it is no longer considered cool. Once it lost its 'cool' factor, the price tends to go down.
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