Burberry & Coach Merge!

Couldn’t help myself but jump at the opportunity to report this! While my next post was supposed to be about the collaboration between singer turned fake designer, Victoria Beckham and Target, this is way more interesting… for me at least. No hate, just appreciate :’)

Coach ready-to-wear spring 2017

Let’s begin….

While Coach and Burberry declined to comment, it has been revealed that Coach and Burberry may merge! That’s a bombshell I never saw coming considering Coach just recently became relevant again after Vevers took the creative director position replacing J.W. Anderson who replaced him at Loewe. Sounds confusing I know but it eventually worked out in the favour of both labels.

Pierre A. M’Pelé who is Pam Boy on Instagram states that it may be the “fashion alliance of 2016.” He explains that “Coach jokes can no longer be used” as it is “doing so well [that] they evicted Chanel from the ground floor at Selfridges.” He also goes on to state that “Coach is reinvigorated and more exciting than ever. Both womenswear and menswear collections are relevant creatively and commercially.” I definitely agree! I mean Coach has been so irrelevant for so long I even forgot it existed (apart from seeing the ever-so-rare coach printed handbags on women who know nothing about fashion and shop at designer outlets #noSHADE).

Coach ready-to-wear spring 2017

As soon as I saw this story being reported by BoF I stopped everything and decided to write this post (p.s: I’m currently on a bike in the gym with my mouth watering because of how juicy this story is!!). I agree with Pam that it’s so juicy “it already ressembles the drama filled merging of Yoox and Net-A-Porter — with heads being chopped off.”

Want to know how juicy this story is? Well, Burberry Group PLC shares have rose 4.8% following reports that Coach has been working with financial advisors for weeks on the alleged deal.

Burberry ready-to-wear spring 2017

“Burberry could indeed be seen as the British Coach” said Luca Solca, head of luxury goods at Exane BNP Paribas. I kind of agree. Both brands are national “treasures.” Coach has always been THE American brand and Burberry while attempting to drift away to the international scene will always be the rebellious English child, unlike his innocent brother Mulberry who has always remained loyal to his national roots.

ATTENTION FEMINISTS: to all the feminists out there please don’t bash me for referring to these labels as men/male.

The main difference between both is that Burberry failed to achieve what Coach has achieved in recent years. Burberry unsuccessfully tried to reposition the brand aiming to have it fit within the “mega-brand price territory, rather than squarely into accessible luxury.” Could that be a problem to the merge?

Burberry ready-to-wear spring 2017

While I think the merge would be great considering Burberry hasn’t been doing so well and could learn a thing or two from Coach, I’m no expert. So my opinion is as useless as yours. Solca (a professional opinion lols) thinks that a merge would not benefit either brand. “A merger of Coach and Burberry would primarily be a merger of problems,” he said. “History in luxury has shown that mergers don’t obviously help in regaining brand traction and desirability, while cost efficiency in the face of declining brand momentum are often just a way to run in order to stand still.” He also points out that “as promising as this looks short-term, this would increase the risk of future brand trivialisation and compromise long-term growth and valuation multiples.”

Juicy juicy juicy!!!!! I’ll make sure to keep you guys updated!

As always, make sure you follow me on Instagram & Twitter!

Till next time xxx

Note: all facts and figures have been taken from the BoF Report unless otherwise stated/listed.

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