Coach's owner Tapestry and Michael Kors' owner Capri are in the courtroom this week for a federal antitrust challenge.
Tapestry and Capri, on the other hand, have argued the deal will allow them to keep up in a trend-driven industry where newer brands and changing consumer tastes are a competitive threat. At the time when the companies vast mix of brands that steal away sales? The FTC has defined the relevant market for two brands as"accessible luxury," a term that Tapestry has used with its investors and board of directors to describe how it offers higher-end fashion looks at a better value.
Attorneys for Tapestry and Capri have argued that competition has intensified, as consumers have new ways to shop and their style preferences change. On the other hand, attorneys for the FTC have said the combined companies would corner the"accessible luxury" market. He laid out financial models and methodology he used to define the market for Tapestry and Capri, and particularly Coach and Michael Kors, saying they primarily compete with other"accessible luxury" players even if its consumers shop with other
And he said it wouldn't need to worry as much, even if Michael Kors' brand continued to be challenged. Attorneys for Tapestry and Capri pushed back on how he defined the competition, questioned his calculations and said he did not account for shoppers' newer habits, such as the ability to buy a Louis Vuitton or Prada bag at a lower price because of the rise of secondhand marketplaces.