Coach is expensive now

[Asagi]

Unfortunately the outlets make up a huge amount of the majority of the company's profit--I forget the actual amount but I remember being really surprised that it was so high--so it's unlikely that they'll abandon that market.

I think it's more likely that they'll continue to move away from logo items and try to elevate the offerings at the factory outlet level.

All that aside, I've purchased 3 bags from the 1941 line in the past couple of months after purchasing only one bag in the past 3 years. My husband is quite surprised that I've rediscovered the Coach brand--and probably a little bit relieved after my recent adventures in premier handbag land!

My prediction is that they'll probably exit underperforming department stores, but keep the outlets and run them as an entirely cheaper 'brand' with 95% made for outlet products (largely CC monogram/canvas stuff and cheaper leathers).

I'm starting to get emails for 'new designs' from the outlets which have a completely different design aesthetic from full price stores.

 

[Luv2Shop1]

That's their problem: too many outlets, where people spend their money rather than going to the FP store. And why would they?

Until the outlets are mostly phased out, it will be hard to convince some clients to go back to coach. Yes, the outlets are a huge source of revenue... and yet it's a huge handicap for the brand.

Agreed, the outlets definitely have diluted the brand; however, I don't see them walking away from the revenue. It's just too much money.

It will be interesting to see how if the 1941 brand extension is successful over the next year. I'm rooting for Coach and Stuart!

 

[Luv2Shop1]

My prediction is that they'll probably exit underperforming department stores, but keep the outlets and run them as an entirely cheaper 'brand' with 95% made for outlet products (largely CC monogram/canvas stuff and cheaper leathers).

I'm starting to get emails for 'new designs' from the outlets which have a completely different design aesthetic from full price stores.

When I saw this email, I thought the varsity stripe is part of the pre-Fall 1941 collection and that they were leaching on to the theme. Different interpretations!

 

[fabuleux]

Agreed, the outlets definitely have diluted the brand; however, I don't see them walking away from the revenue. It's just too much money.

It will be interesting to see how if the 1941 brand extension is successful over the next year. I'm rooting for Coach and Stuart!

I don't think they'll walk away from the revenue. I think they are attempting the delicate operation of shifting back revenue to the boutiques, which would allow to let go of some of the outlet locations (way too many outlets for a wanna-be-premium brand).

It's going to be hard to erase 15 years of crazy brand expansion... Coach did its brand a lot of damage with the outlets. It was really sad to watch how the brand became so unpopular. I hope they can manage this return to glory!

 

[Luv2Shop1]

I don't think they'll walk away from the revenue. I think they are attempting the delicate operation of shifting back revenue to the boutiques, which would allow to let go of some of the outlet locations (way too many outlets for a wanna-be-premium brand).

It's going to be hard to erase 15 years of crazy brand expansion... Coach did its brand a lot of damage with the outlets. It was really sad to watch how the brand became so unpopular. I hope they can manage this return to glory!

Me too!

 

[EvieSeb5671]

I'm starting to see this strategy play out IRL to a certain extent. It used to be that I would never have issues getting a bag I liked at the boutique, even if it had been out for a couple months. Now the color I had my eye on has sold out in one style, and I got the last one in stock on the bag I did choose. They've been talking about it for a while, but I think boutique transfers to the outlet do seem like they'll be slowing down.

Also, to address the OPs comments about prices, I don't think they have really gone up as much as it might seem. For the 65th anniversary ten years ago the Legacy bags were around $400-$800 for non-exotics, so not terribly different than some of the 1941 prices now.

Yeah I definitely agree about it being hard to get your hands on some of the bags these days. Especially with some of the bags in the 1941 collection. Which I guess isn't a bad thing? I'd like for Coach to stop cheapening their brand.

 

[HesitantShopper]

That's their problem: too many outlets, where people spend their money rather than going to the FP store. And why would they?

Until the outlets are mostly phased out, it will be hard to convince some clients to go back to coach. Yes, the outlets are a huge source of revenue... and yet it's a huge handicap for the brand.

Around here 4 brands reign, however every time i see Coach newer bags they are factory, NOT FP... most people do not know the concept nor what it means...

That being their main source of revenue, wasn't it said like 75%? i dunno i just know it was big is a massive issue for the brand trying to sell itself as 'redesigned'

 

[HesitantShopper]

My prediction is that they'll probably exit underperforming department stores, but keep the outlets and run them as an entirely cheaper 'brand' with 95% made for outlet products (largely CC monogram/canvas stuff and cheaper leathers).

I'm starting to get emails for 'new designs' from the outlets which have a completely different design aesthetic from full price stores.

There really isn't much signature at factory now and the BIGGEST problem is they keep copying themselves, a laundry list of 'remakes' of boutiques bags exists and most are done in the crossgrain leather... not that much coated canvas(some) but X-grain is what is ruling that place now.