I think
Coach is on the right track to make their brand more exclusive again. What tarnished their reputation is the mass production of the signature monogram bags. They need to stop focusing on the outlets and focus on the actual Coach boutiques. Also a good option would be to get rid of their sales in department stores like Macy's and Bloomingdales to further prevent their items from going on sale all the time, making it less accessible to give of the more "exclusive" vibe.
I don't think LV is superior to Coach in terms of quality. Their exclusive Parnassea and runway lines may be better but their regular collections seem to be the same quality as Coach. ((This is just my opinion based on my experience.))
I think Coach gets treated unfairly because of their lower price point and the fact that they cater to the "not so wealthy" folks. If you really think about it, A LOT of high end designers have huge sample sales and even make "outlet-only" items for their outlets. In general I feel American brands are always seen as secondary compared to European brands. A lot of amazing American leather goods brands are overlooked because of the fact that they are American so they may be of lesser quality than their European competitors, when this is not always the case. A good example is Ralph Lauren's Ricky line, the quality is TOP notch, probably one of the best stitching and craftsmanship I have ever seen, but since it is Ralph Lauren people deem it as a lower end bag you can find on sale at Macy's. As
@fabuleux said above, Coach definitely has potential to become something like Longchamp. They just need to manage their production. Coach can continue producing in China or Vietnam if it is convenient for them, but they just need to chill out with the mass production, they can develop leather workshops in those countries, teach their workers true craftsmanship, and develop just as good bags as the ones from leather workshops in Spain, Italy, or France, just by taking the time to put care and love into the items they produce.