Dive Brief:

• Coach is moving away from the mass market to compete with luxury brands like Tory Burch and Michael Kors by creating smaller runs of only about 100 styles, all at higher price points.

• The company has been selling bags averaging $300 but has seen success recently with items priced higher than $600. While it aims to keep prices at the higher minimum, it also plans to undercut some luxury competitors by capping prices at closer to $5,000 — although it has tested a $20,000 bag designed by Billy Reid.

• The company is emphasizing its higher quality and excellent design credentials under new design director Stuart Vevers.

Dive Insight:

Luxury brands are doing well these days in an otherwise tough retail climate, and these price and quality moves by Coach appear to be a way of solidifying its standing in that category. Smaller runs of more expensive bags will help underscore its reputation for quality goods, and the higher price points will help ensure that only the quite-wealthy will be able to throw their keys and wallets into Coach bags. The only-somewhat-wealthy will have to find their $300 to $500 bags somewhere else.