From a longer-term perspective, the online channel will gradually steal a share of actual store sales. So this distribution channel could actually be an effective strategy for entering small markets, whereas opening physical stores in smaller markets would not be. be profitable. Risks: Brand dilution There is a reason why high-end handbag and accessories companies historically stay away from smaller markets, as the move can be interpreted as a downgrade of the brand and people will start viewing the brand as cheap.Slow demand in small marketsThe market dynamics could be very different from metro cities where people are more fashion conscious and products can turn around quickly. So smaller markets might not fit into Coach's business model, which creates new products on a monthly basis. some markets could be completely new for luxury handbags and accessories