Anyone see this YahooFinance article on Coach?

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ame

ame

O.G.
Mar 22, 2007
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#1
http://finance.yahoo.com/news/women...327.html?soc_src=mediacontentstory&soc_trk=fb


I am not personally a fan of outlets, full stop, but I feel like they are not entirely what cheapens the brand. What really cheapens the brand is the fact that they make lower end goods of lower quality material that is specific to the outlets. It's deliberately made for outlet and it's deliberately made poorly to be sold at that price point. It is not made to the brand's otherwise "high standards," and that damages the reputation of the brand. ANY brand with an outlet does this. They end up with outlet-specific goods which are inferior product to their actual flagship line, and people flock there looking for a deal on that brand name item, not really grasping that they're not getting the real brand name item, just some cheap "knockoff", for lack of a better word, basically.

In my opinion, Coach was already in trouble on their flagships-ignoring the outlet thing altogether-because they got rid of what made them what they are: their original classics, with the great leather, and amazing handmade craftsmanship, all of it made here in the US. They started cheaping out on the leather, and making the bags in crazy *** painted leathers of lower quality, and above all--shipping it out to China, etc., for manufacturing. Those hideous "creations" have only gotten more expensive, and they make insane profits despite the fact they're lower quality and lower manufacturing costs. They're also considered fast-fashion now, because they've gotten too trendy. Had they kept with the originals as their main driver, kept it's quality and manufacture, and stopped this "anniversary only" bull**** with the originals, they'd still be quite a force. You can still have little spring/fall lines that are trendy, but what made you what you are is long lost.
 
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#2
What I got out of that article is that girls 13 to 29 aren't spending their money on bags. Maybe Coach should start realizing that the people who have money to spend on bags, and want to spend it on bags, are over 30.
 
#3
whateve said:
What I got out of that article is that girls 13 to 29 aren't spending their money on bags. Maybe Coach should start realizing that the people who have money to spend on bags, and want to spend it on bags, are over 30.
Click to expand...

I don't see a lot of women 13-29 who spend a lot of money on handbags--maybe a wallet but not a bag. I think Coach is trying to focus on an slightly older demographic, in some cases, and that's why some bags are becoming so expensive.
 
#5
ame said:
http://finance.yahoo.com/news/women...327.html?soc_src=mediacontentstory&soc_trk=fb


I am not personally a fan of outlets, full stop, but I feel like they are not entirely what cheapens the brand. What really cheapens the brand is the fact that they make lower end goods of lower quality material that is specific to the outlets. It's deliberately made for outlet and it's deliberately made poorly to be sold at that price point. It is not made to the brand's otherwise "high standards," and that damages the reputation of the brand. ANY brand with an outlet does this. They end up with outlet-specific goods which are inferior product to their actual flagship line, and people flock there looking for a deal on that brand name item, not really grasping that they're not getting the real brand name item, just some cheap "knockoff", for lack of a better word, basically.

In my opinion, Coach was already in trouble on their flagships-ignoring the outlet thing altogether-because they got rid of what made them what they are: their original classics, with the great leather, and amazing handmade craftsmanship, all of it made here in the US. They started cheaping out on the leather, and making the bags in crazy *** painted leathers of lower quality, and above all--shipping it out to China, etc., for manufacturing. Those hideous "creations" have only gotten more expensive, and they make insane profits despite the fact they're lower quality and lower manufacturing costs. They're also considered fast-fashion now, because they've gotten too trendy. Had they kept with the originals as their main driver, kept it's quality and manufacture, and stopped this "anniversary only" bull**** with the originals, they'd still be quite a force. You can still have little spring/fall lines that are trendy, but what made you what you are is long lost.
Click to expand...

Blah, blah, blah-if you don't like it, don't buy it - and I'm sure you don't.
I've never understood the concept of coming to a particular forum just to stir the pot and bash the brand. And don't even pretend you weren't here to at least get a dig in at the brand; otherwise you'd have just left the link and gone, or posted it elsewhere.
 
#6
iNeedCoffee said:
Blah, blah, blah-if you don't like it, don't buy it - and I'm sure you don't.
I've never understood the concept of coming to a particular forum just to stir the pot and bash the brand. And don't even pretend you weren't here to at least get a dig in at the brand; otherwise you'd have just left the link and gone, or posted it elsewhere.
Click to expand...

I agree. The main focus of the article was to point out that young women now a days do not buy handbags of any brand period. They would rather spend their money on athletic brands.Also, the writer did mention at the end of the article that it is 'inevitable' that coach will make a turn around to the right direction due to the recent changes that have been implemented. I don't understand the blatant hate on coach. I have recently started to buy Louis Vuitton but I do still buy coach products and I look forward to the spring collection being released. Coach was my first love. I can't hate it.
 
#7
iNeedCoffee said:
Blah, blah, blah-if you don't like it, don't buy it - and I'm sure you don't.
I've never understood the concept of coming to a particular forum just to stir the pot and bash the brand. And don't even pretend you weren't here to at least get a dig in at the brand; otherwise you'd have just left the link and gone, or posted it elsewhere.
Click to expand...

My comments were my perspective as to why the brand might be hurting. These outlets did damage to other brands, and the cheaper materials and offshore manufacturing has done damage to other brands. Those concepts are not just why people in that age group are leaving the brand, not why they're walking away from this market entirely, it's why a lot of people are walking away from brands as a whole. It's kind of a conscious consumerism thing. They are voting with their money, if you will. And that age group has gotten very wise to that concept. They're probably THE most active at it. So while you would like to claim I came here just to "bash the brand", or get in a "dig", I actually wanted a thoughtful discussion.

Yes I got the part about the people in that age group not being as active with their buying, but what I notice more is that people in that age group have "moved on up" to higher brands, in part due to wanting a more luxurious brand, and in part due to that whole "voting with their dollars" thing. They want to know more about where it was made. There also seems to be a push to have less but better.

The brand itself isn't doing what it became known for and maybe if they went back to THAT, they'd regain some of that core consumer, since people in that age group are the kids and grandchildren of the original shoppers. My mother in law and sister in law are DIE HARD for Coach, but they don't want these new designs, and I haven't been excited about much in years. This (hopeful) re-release of their originals that I am expecting in the coming weeks is something I hope reinvigorates their brand. Why they don't see the excitement surrounding it, and why the constant inquiries from their longtime fans doesn't keep them on the market permanently makes no sense.

ETA:
Your talking about how "kids" in that age group are not buying bags/Coach anymore. It might be because of how they're pricing them and not just because of how they're made--some of these Spring collection purses over the last few seasons that are aimed at that age group and "on trend" sell for $800. And the brand is somehow expecting that people are going to buy a new bag every season at that price point. How many kids in that age group have that kind of money? Hell, I am almost 40 and I don't have $800 a season earmarked to buy a bag. And if you have that much money for that kind of item, is Coach the brand you're gonna spend it on unless you are DIE HARD and love every single design? No. You're likely taking that money to somewhere like LV, or Celine, or whatever other brand has currently piqued your interest.

ETA2:
Another thing I noticed--bloggers. A lot of teens and 20s read blogs and view vlogs on YouTube. Coach, Kate Spade, Michael Kors, etc., are not often the brands du jour touted on those posts. They used to be but in the last, 3 years or so, there's been a shift in what brands have been featured. Lo&Sons had a stint there for a while, Fossil did too. There was a brief Kate Spade one. But a lot of the posts I see on those blogs are the really high end stuff, and often the blogger/vlogger gets a world of crap for that as well, as in for how her money is spent. So when these girls see that stuff, and see in the magazines that all these celebrities in their age bracket are carrying these higher end items and have multiple bags to choose from, they think that's something they should own, they should be able to do, and it's exhausting.
 
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#8
I honestly wish they hadn't gotten rid of the Poppy line. I know it no longer fits with the image they are trying to cultivate, but I loved Poppy. Every year I looked forward to the new Poppy designs, especially in summer. And the price points were reasonable, I could afford to buy a new Poppy bag every season.
I am laughing about the idea of a "13-year old It Girl" though. When I was 13 purses were the last thing on my mind! Not to mention expensive ones!
 
#9
iNeedCoffee said:
Blah, blah, blah-if you don't like it, don't buy it - and I'm sure you don't.
I've never understood the concept of coming to a particular forum just to stir the pot and bash the brand. And don't even pretend you weren't here to at least get a dig in at the brand; otherwise you'd have just left the link and gone, or posted it elsewhere.
Click to expand...

Agree with you completely, ineedcoffee. :tup:
 
#11
ineedcoffee said:
blah, blah, blah-if you don't like it, don't buy it - and i'm sure you don't.
I've never understood the concept of coming to a particular forum just to stir the pot and bash the brand. And don't even pretend you weren't here to at least get a dig in at the brand; otherwise you'd have just left the link and gone, or posted it elsewhere.
Click to expand...

+1
 
#12
ame, I think part of the reason why you are getting the responses you are is because what you said in your original post has already been stated here many times over in the last couple years, and that it didn't relate to the article. Whether we disagree or agree about the impact of the outlets, we probably all get tired of reading the same arguments over and over again, and in the end those that post at the Coach forum still like Coach, and buy Coach products.

As for the cost being high, I don't really think it is fair to use Coach as an example of that when they are far lower in price than many of the premier handbags that people want. Coach allows individuals who cannot get "those" bags to get a really great handbag for far less cost.

I would agree that young people aren't going to spend that much on a bag, which gives to the point someone else stated above...Coach should realize the market is for those older and able to buy those bags.
 
#13
Actually, I think putting this in the General bags section would've been better for a real discussion. I think everyone stopped reading my post after the first few words since I mentioned "outlet", because the meat of my post said they stopped doing what they got known for, which is the classics, and that's what I think really did them in, that and an $800 bag.

I should've put the Outlet stuff later, but the point really is, no one really read my post, they just got offended immediately and claimed bashing. And that's fine, I should not have expected die-hard coach fans to not want to have an open discussion about the brand's slide downhill when I opened with a criticism about their product. Next time, Ill post in the open bags section and let everyone chime in with their opinions.
 
#14
I would argue the point then, that you didn't really read my post, which was to say we have discussed the impact of outlets, and other possible reasons for Coach's decline many, many times over the past 2 years. So, you are wrong when you say, that Coach fans would not have an open discussion about this... we have in many, many other threads. It just gets to the point that there is no reason to keep making the same points over and over, and to just enjoy Coach for what it is.
 
#15
ame said:
ETA:
Your talking about how "kids" in that age group are not buying bags/Coach anymore. It might be because of how they're pricing them and not just because of how they're made--some of these Spring collection purses over the last few seasons that are aimed at that age group and "on trend" sell for $800. And the brand is somehow expecting that people are going to buy a new bag every season at that price point. How many kids in that age group have that kind of money? Hell, I am almost 40 and I don't have $800 a season earmarked to buy a bag. And if you have that much money for that kind of item, is Coach the brand you're gonna spend it on unless you are DIE HARD and love every single design? No. You're likely taking that money to somewhere like LV, or Celine, or whatever other brand has currently piqued your interest.
Click to expand...

When I was a teenager, bags are the last thing I can think about. But I think you're also making quite a bit of generalization about people's purchasing decisions. Personally, I spend about $800 a month (sometimes more, and others less) for bags, and Coach is what has my eye right now. What's premier and more expensive is not necessarily better in quality or style. After owning Pradas, YSL, Fendi, Ferragamo, you name it, I'm actually tired of the decline in quality from a lot of these prestigious names, and an endless increase in price. Not everyone is going to want to move "up" the brand ladder anymore; the luxury market has become so saturated that these fashion houses' designs lost a lot of their allure. If the big players really rely on young women before the age of 30 to keep their prestige going, they're not going to be able to sustain when many of their core customers are moving on. In sum, if what you say is true for the market of Coach, then I don't see why that is not also an issue with the premier designers as well. And no, I am not a Coach "DIE HARD" that likes every one of their output; in fact, before they came out with their borough bags in Fall 2013-Spring 2014, I have maybe one Coach in my whole closet.
 
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