Coach And Kate Spade May Be Merging - Declining Sales All Around

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#33
PerrieEsh said:
OMG!! NO!!! I hate Kate Spade merch. I only ever buy COACH items and my bf and family know I am crazy for COACH gifts only. If they merge than I hope Kate Spade takes inspiration for COACH's signature style. I don't like this merge at all.
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They are acquiring them, but they'll remain separate stores! Nothing to worry about! Look it at how LVMH runs Vuitton and Dior, but the direction of each brand is distinct and unaffected by the other.
 
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#34
There is also another blog on the KS side, BTW.

"Kate Spade May Merge With Coach Or Be Sold To Highest Bidder"

The CEO of Coach was interviewed by CNBC reporter earlier today. Just like their purchase of Stuart Weitzman last year, Coach is supposedly leaving the brand alone. KS and Coach have only a 10% market/customer overlap. They said that KS caters to Millennial shoppers. Trendy, whimsical, and often buys multiple items. Coach client is older and buys a more expensive classic yet on-trend handbag. They bought KS so they could appeal to more age groups of customers. I'm mainly a Coach customer. I think it's a great move.

The quality of Coach is way up in the past two years in their new prestigious 1941 line. Go look at a Coach Rogue bag.

Most people don't even know Coach owns Stuart Weitzman. That's what they are talking about re: KS.


https://forum.purseblog.com/index.php?posts/31323337/
 
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#38
radhikaa91 said:
I think this is a smart move for Coach as long as they keep Kate Spade separate, which I'm sure they will.
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Yes, they absolutely will. I've been following the rumors for months on the wire. Coach has vocalized countless times in its earnings reports that it aims to become an American luxury conglomerate, a la LVMH.

I'm also positive that Coach will NOT poach from their pool of leadership at Coach. Coach has been doing too well to tinker with the formula now. They'll poach from companies outside Coach, Inc. (Stuart Weitzman, Coach, Kate Spade) for talent.

In fact, I can see them hiring Jenna Lyons for Kate Spade's creative director after her non-compete is up in December.
 
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#39
Per this CNBC article:

"...don't expect to find Kate Spade wallets in Coach stores. In fact, Coach intends for its brands to remain so independent, it doesn't want its shoppers to know Kate Spade and Stuart Weitzman are under its umbrella too.

'We don't want consumers to any have idea that there is a link. We don't think it's relevant," explained Coach CEO Victor Luis in an interview with CNBC. 'It's the current scenario with Stuart Weitzman [and Coach]. To that end, there won't be links between the brands online. All the connection will be on the back end of the business' like logistics and some supply chain costs.

This is a reflection of how Coach classifies itself now, as 'a leading New York design house of modern luxury accessories and lifestyle brands.'

The brands will remain very separate because they are complementary in Luis' mind as he describes each.

Kate Spade has 'a unique brand attitude that's youthful, with a much higher penetration of millennials, fashionable, fun, feminine with a bit of whimsy,' Luis said.

He described Coach as 'America's house of leather. There's a legacy, a quality of product and fashion attitude brought by creative director Stuart Vevers.'"​
 
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#40
MonsieurMode said:
Per this CNBC article:

"...don't expect to find Kate Spade wallets in Coach stores. In fact, Coach intends for its brands to remain so independent, it doesn't want its shoppers to know Kate Spade and Stuart Weitzman are under its umbrella too.

'We don't want consumers to any have idea that there is a link. We don't think it's relevant," explained Coach CEO Victor Luis in an interview with CNBC. 'It's the current scenario with Stuart Weitzman [and Coach]. To that end, there won't be links between the brands online. All the connection will be on the back end of the business' like logistics and some supply chain costs.

This is a reflection of how Coach classifies itself now, as 'a leading New York design house of modern luxury accessories and lifestyle brands.'

The brands will remain very separate because they are complementary in Luis' mind as he describes each.

Kate Spade has 'a unique brand attitude that's youthful, with a much higher penetration of millennials, fashionable, fun, feminine with a bit of whimsy,' Luis said.

He described Coach as 'America's house of leather. There's a legacy, a quality of product and fashion attitude brought by creative director Stuart Vevers.'"​
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I think it's a great move, next I'd love to see Coach acquire Burberry. It's an exciting time to be a Coach lover, I think so anyway!!
 
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#41
Some of the comments on various 'Net articles about this have been savage -- stuff like "I didn't know Coach was still relevant" or "Coach is what you buy when you can't afford a better brand". Ouch.

That being said, I don't think I've been disappointed in a FP Coach purchase at all (save for some minor chipping on the turnlock on my Dinky). Outlet stuff has been hit or miss, but I tend to usually just hit up my outlet to see what they've got on-hand from the FP deletes. >.>
 
#42
zjones said:
Some of the comments on various 'Net articles about this have been savage -- stuff like "I didn't know Coach was still relevant" or "Coach is what you buy when you can't afford a better brand". Ouch.

That being said, I don't think I've been disappointed in a FP Coach purchase at all (save for some minor chipping on the turnlock on my Dinky). Outlet stuff has been hit or miss, but I tend to usually just hit up my outlet to see what they've got on-hand from the FP deletes. >.>
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It's really disappointing to see how people hold onto these outdated notions of Coach. The comments on a Jezebel article about the acquisition article were pretty ignorant. Almost all of the comments accused Coach of plastering their logo over everything and being poorly made. Like, they can simply go to the flipping website for 30 seconds to see that they're wrong! Hoping that people will start associated Coach with the recent glovetan designs more!
 
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#44
I hope they stick to the plan and keep the brands separate. There are things I like about Coach and things I like about KS and I would hate for the lines to become blurred. There WILL be some changes, there has to be.....hope it isn't price increases or fewer sales. KS has some great deals if you buy a sale bag + additional 25% off
 
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