Cute bag! Any idea what caused the spot and is the spot worse on the inside? If it was caused by a big ink blotch inside then it might run and spread in the bath; I don't know.
But if you are able to rehab it and the color darkens a little, it may make the spot less noticeable; and painting can help to mask it as
@whateve suggested.
When the stores reopen, the
Coach stores have been offering the option to have appliques and embellishments professionally added to bags while you are in the store. Perhaps a small pattern of tiny flowers on the front would work?
What do you mean by "the hardware has chipped" can you show a close-up picture?
Not all bags can be saved and I have personally invested time, effort, and products into some disappointing bags that I should have left alone; so don't feel obligated to try - but if you want to try, there may be some opportunity for improvement here, and I've learned a lot from my failures even though they were painful lessons.
If not, it could become a "donor bag" for a future rehab, that button latch is rare and difficult to replace. Good luck!