Local brand management company True Alliance has taken over the Australian operations of luxury US-based accessories label Coach, after signing an exclusive distribution agreement.
The contract, which has seen the two companies locked in discussions for several months, gives True Alliance exclusive rights to distribute all Coach products across Australia and New Zealand via a network of Coach boutiques. True Alliance is now also responsible for marketing and promotion of the brand in both markets. Although the deal is freshly inked, True Alliance general manager David Smith said the company already has expansion plans in the pipeline for Coach.
“Coach launched in Australia four years ago and due to the success of the business the brand owners decided to work with a new partner to expand and develop the business further,” Smith said. “True Alliance currently manages 14 brands in the Australia and New Zealand markets and our infrastructure and market expertise ensures we are perfectly placed to deliver strong brand growth in our market.
“Given the nature of the Australian retail real estate market, it would be difficult to provide an exact opening schedule, however our plans will include flagship stores for Coach in all capital cities and key shopping destinations across Australia and NZ.”
The focus for True Alliance will be to cater to the needs of the local Australian consumer, and Smith said the company will work closely with New York to ensure that the collections are tailored to suit the local market in terms of styling, fabrication and price.
“True Alliance will work closely with Coach in New York to optimise the assortment ensuring we present a compelling offer to the local Australian consumer, and we have already re-worked the price architecture of the collection to offer a full range of leather handbags where the bulk ofproducts will range between $300 and $700, providing the Australian consumer with a global brand at accessible prices.”
While True Alliance plans to promote and market the Coach brand extensively over the next few years, Smith also said he considers the brand a strong competitor in the Australian retail market due to its accessible price points, monthly deliveries of new collections, focused product offer and superior customer service.
“Coach is 'accessible luxury' and as such targets a much broader consumer base than the other global accessory brands present in this market,” he said.
International Coach president Ian Bickley also said he has high expectations for the growth of the Coach label in the region.
“Over the past several years, the Coach brand has enjoyed increasing global recognition, driven by a growing presence internationally, [and] given our innovative and relevant product offering and accessible price points, we’re well positioned for the Australian market,” Bickley said.
“We're confident in the strength of the True Alliance team in driving the Coach brand to reach its potential in this very promising market.”
In addition to all operating existing Coach stores, located at the Queen Victoria Building and Bondi Junction in Sydney and Chadstone in Melbourne, True Alliance also assumes responsibility for Coach concession stores at David Jones Elizabeth Street, Sydney and David Jones Bourke Street, Melbourne.
Smith said initial plans do not include wholesale distribution for Coach.
Daniela Aroche