FROM COACH TO FIRST CLASS: REED KRAKOFF IS THE NAME

Question of the day: Does the world need another brand?

Coach, the empire representing affordable luxury seems to think so. In what appears as a tall order, the man himself behind the brand, Creative Director, Reed Krakoff, is making things personal. From the full concept development, down to the brand’s name, his own, Reed Krakoff is pushing full force to make the fashion world embrace the new line. Treated as a separate entity yet fully funded by Coach, (deeming it essentially as its own competitor) the plans for the Reed Krakoff brand includes product offerings in women’s ready-to-wear, jeweler, handbags, and shoes.

The strategy? Sell Americana! The line, as Mr. Krakoff describes it will feature price points for its r-t-w from $495 to $1,195, and has emphasized the esthetic as an eclectic mix of “softness with American utilitarianism.” Handbags will retail from  $ 695 to $ 1, 295. There is also mention that the stand alone brand projects 10 initial free standing stores  (US, Japan, Hong Kong) and more long term goals include markets in men, home, and fragrance.

And despite Krakoff's wizardry touch (since joining the company in 1996, sales have, according to WWD increased 6-fold) the real doubt lies both in the volatility of the market, and the oversaturation of luxury brands. 

If fashion and consumer spending can become more of a patriotic symbol: a strategy Mr. Krakoff seems to want to utilize – than he could have a chance after all. However, right now that could seem like a far stretch. His price points represent an upper middle class demographic (the ones deemed far worse hit by the financial/mortgage storm) but the upswing of things could lie in the product differentiation (point of view) and investment in global expansion.

 It will be interesting to see if America will support the new American brand, (like the Clair McCardell days!) or if Reed Krakoff will do better at selling “America” to our long lost neighbors.

Nevertheless, despite all the reasons not to, Coach is using the recession as an opportunity to think long term, and capitalize on a dream that could be a powerful voice for fashion, in the years to come.