US leathergoods company Coach has reported that its handbags priced over $400 are finding more buyers, allowing the company to move upmarket after introducing more lower-priced bags following the 2008 financial crisis.

The firm has also stated that it will not raise prices, despite higher costs for leather and labour in China.

“We're not contemplating raising prices in the future,” Coach CEO Lew Frankfort said at the Reuters Global Luxury & Fashion Summit on Monday 23 May, 2011. “Our customers are looking for excellent value.”

“Customers have embraced [bags above $400] and are buying them at increased rates,” Mr Frankfort said. “Our positioning as a democratised luxury brand has never been more in vogue than it is today.”

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