Interesting. I have been thinking that MK will eventually start cooling. And he is using outlets, sales, etc. as Coach has done, because many people don't want to buy his products at retail...as Kate Spade. MK may be the "it" brand in lower end but I don't think it will hold its place for years...
CEO Victor Luis talks Coach's turnaround strategy (Fortune interview)
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Interesting. I have been thinking that MK will eventually start cooling. And he is using outlets, sales, etc. as Coach has done, because many people don't want to buy his products at retail...as Kate Spade. MK may be the "it" brand in lower end but I don't think it will hold its place for years...
I was thinking about Coach's competitors right now, mainly TB, MK and Kate Spade. It seems that with the new business model, they are not necessarily going head to head with them, but rather targeting the market just above them. I am thinking Burberry, LV and some others. The one thing Coach has going for it with this segment is their leather. The lower end Burberry and LV bags are around $700-$900 and they are canvas. If you want leather, slap another $500-$700 on that price tag. If Coach maintains their quality and builds on their reputation of fine leather goods, I think they could grab some of that market. I for one would rather pay $700-$900 for a beautiful, quality leather bag as opposed to canvas.
Heh, I agree with this. I've been silently chuckling to myself during this whole brou-ha-ha, because kors, spade (and chanel) are the lone brands I will never, ever buy. So every time I see them listed in these articles, I can't help a personal giggle.
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I hope the turnaround works well for Coach, but there is a possibility this may happen:
Coach is taking after JC Penney: Analyst
http://www.cnbc.com/id/101776782
Making too many changes at once can turn consumers off immediately and have them running to competitors, much like JC Penney did last year when the new CEO eliminated markdowns and instead had 'everyday low prices'.
In the article, it says that Coach plans to 'wean customers off discounts in its outlet business', which I think would be a huge mistake being that the outlet business is designed to attract bargain-minded customers. The company already tried messing with pricing at the FOS level and it didn't work when it tried to start with 30% off then an additional 20% when we knew damn well everything used to be at least 65% off.
I think the new Fall 2014 line is a fresh start to clearly differentiate the Factory and full-price retail lines. The full-price line will be more high-fashion yet stationed in high-quality leather heritage. At the Factory level, they can offer a better range of mass product, hopefully with better quality, less PVC and less fabric logo bags that have devalued the brand over the years.
Coach is taking after JC Penney: Analyst
http://www.cnbc.com/id/101776782
Making too many changes at once can turn consumers off immediately and have them running to competitors, much like JC Penney did last year when the new CEO eliminated markdowns and instead had 'everyday low prices'.
In the article, it says that Coach plans to 'wean customers off discounts in its outlet business', which I think would be a huge mistake being that the outlet business is designed to attract bargain-minded customers. The company already tried messing with pricing at the FOS level and it didn't work when it tried to start with 30% off then an additional 20% when we knew damn well everything used to be at least 65% off.
I think the new Fall 2014 line is a fresh start to clearly differentiate the Factory and full-price retail lines. The full-price line will be more high-fashion yet stationed in high-quality leather heritage. At the Factory level, they can offer a better range of mass product, hopefully with better quality, less PVC and less fabric logo bags that have devalued the brand over the years.
I found this quote interesting:
"In September, it will start selling the first collection designed by creative director Stuart Vevers, who has focused on the 73-year-old companys heritage and New York roots. The new collection is a nod to Coach classicsand an effort to start to win back shoppers who thought the brand had grown too showy in recent years."
Too showy?? Legacy, Borough, the newer Madisons are all very toned down styles. And wasn't Legacy supposed to be a "nod to Coach classics". And if they cared about their NY roots so much they would have kept the bags Made in NY. But I digress...
Though I am glad to hear some of the displaced Coach SAs will get jobs at the department stores. The ones in my local dept stores are not Coach specific but work in the general "better handbags" area.
I may be in the minority but I don't think this interview leads me to believe the strategic plan is any more thought out than what I read before. I want Coach to succeed too, but so far I am not hearing anything that leads me to believe they are on the right path. It is one of those cases where I hope I am wrong.
"In September, it will start selling the first collection designed by creative director Stuart Vevers, who has focused on the 73-year-old companys heritage and New York roots. The new collection is a nod to Coach classicsand an effort to start to win back shoppers who thought the brand had grown too showy in recent years."
Too showy?? Legacy, Borough, the newer Madisons are all very toned down styles. And wasn't Legacy supposed to be a "nod to Coach classics". And if they cared about their NY roots so much they would have kept the bags Made in NY. But I digress...
Though I am glad to hear some of the displaced Coach SAs will get jobs at the department stores. The ones in my local dept stores are not Coach specific but work in the general "better handbags" area.
I may be in the minority but I don't think this interview leads me to believe the strategic plan is any more thought out than what I read before. I want Coach to succeed too, but so far I am not hearing anything that leads me to believe they are on the right path. It is one of those cases where I hope I am wrong.
I have that bag!! I saw a photo of it last year, I think it was from a tPF'r and located that bag in Seattle, WA. I did a charge send. I always wondered why I never saw the bag before and I'm guessing you're right about the Asian market. Can I ask how you found that out?
It's an amazing bag, just gorgeous! For some strange reason I haven't cut the tags yet. I'll probably debut her in the fall.
I located a post about it here on tPF. It will take a bit, but I'll find it again. Gotta get my son to the dentist.
page 234 see posts 3496 and 3500
http://forum.purseblog.com/coach/coach-fall-2012-master-thread-739031-234.html
interestingly the three I found on ebay all came from Washington state.
page 234 see posts 3496 and 3500
http://forum.purseblog.com/coach/coach-fall-2012-master-thread-739031-234.html
interestingly the three I found on ebay all came from Washington state.
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Because I can't stand the idea of even one penny of mine going into karl lagerfeld's pocket.
