Coach wants to be the American Louis Vuitton...

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#46
applecidered said:
It can't happen. Not that in America we don't purchase American branded items, but the perceived European quality is the one thing Coach cannot achieve. Just take a look at the "premier" section of TPF. None are American brands. It's like comparing a Cadillac to BMW. With that budget people will more likely get the beemer.
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It has nothing to do with European vs. American (and as a Caddy driver, I'd take one any day over a BMW ;) ) It's about a mid-level brand known for outlets & coupons trying to declare themselves a premier luxury brand. Increasing prices while making no other changes in quality, country of origin, etc. does not a luxury brand make.

It's about knowing your role.
 
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#47
pmburk said:
It has nothing to do with European vs. American (and as a Caddy driver, I'd take one any day over a BMW ;) ) It's about a mid-level brand known for outlets & coupons trying to declare themselves a premier luxury brand. Increasing prices while making no other changes in quality, country of origin, etc. does not a luxury brand make.

It's about knowing your role.
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GM cars aren't known as premier; by extension Cadillac has that looming over its brand (much of the car's interior is GM level trim, exterior is crammed with bling, all parts are the same GM quality parts, etc). Coach is doing the same extending to luxury, and it doesn't help it primarily markets as a mid-tier brand. A better comparison would be MK and its luxury branded handbags, which no one I know buys.
 
#48
applecidered said:
GM cars aren't known as premier; by extension Cadillac has that looming over its brand (much of the car's interior is GM level trim, exterior is crammed with bling, all parts are the same GM quality parts, etc). Coach is doing the same extending to luxury, and it doesn't help it primarily markets as a mid-tier brand. A better comparison would be MK and its luxury branded handbags, which no one I know buys.
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What Coach has done in the past has been to have some affordable bags (around $300 or under), some mid priced bags (around $500 or under), and then some pinnacle bags. I think it helped that people who couldn't afford the expensive bags could still buy something at FP, and I'm sure some people who started looking at the cheaper bags upgraded to the more expensive bags.

When they came out with Poppy, which was really affordable, it was supposed to be for a younger customer but appealed to many. I wonder if it impacted the sales of their other lines.

If they ramp up all their prices to over $500, a lot of people won't even come into the store.

I've noticed the MK and Kate Spade have premium priced bags. I really wonder how many of these they sell.
 
#49
whateve said:
What Coach has done in the past has been to have some affordable bags (around $300 or under), some mid priced bags (around $500 or under), and then some pinnacle bags. I think it helped that people who couldn't afford the expensive bags could still buy something at FP, and I'm sure some people who started looking at the cheaper bags upgraded to the more expensive bags.

When they came out with Poppy, which was really affordable, it was supposed to be for a younger customer but appealed to many. I wonder if it impacted the sales of their other lines.

If they ramp up all their prices to over $500, a lot of people won't even come into the store.

I've noticed the MK and Kate Spade have premium priced bags. I really wonder how many of these they sell.
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I didn't even know Kate spade had premium bags... :\ like MK, doubtful many sell.
 
#50
applecidered said:
GM cars aren't known as premier; by extension Cadillac has that looming over its brand (much of the car's interior is GM level trim, exterior is crammed with bling, all parts are the same GM quality parts, etc). Coach is doing the same extending to luxury, and it doesn't help it primarily markets as a mid-tier brand. A better comparison would be MK and its luxury branded handbags, which no one I know buys.
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Agree totally about MK. I looked at some recently in NM before a "premier" bag purchase, and was surprised that they are made in China, same as the less expensive "MICHAEL Michael Kors" line. Disappointing.

I don't believe that most Americans automatically perceive European items are higher quality. I would prefer a made-in-USA product over German/French/etc. any time if available. But... Coach is neither, so it's a moot point. But, I DO think most Americans would prefer not to purchase made in China bags. Especially in a "premier" price range.

I recently got the survey from Coach asking how much (maximum) I would consider paying for a bag, how much I would consider paying for a bag as a gift for someone else, etc. So I believe it is clear that price increases are on the way.

IMHO Coach will need to up their game in other areas (aside from just upping price) if they want to rebrand themselves as a premier luxury brand on par with LV. It will be an extremely tough row to hoe, particularly when it comes to customer base.
 
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#51
Coach has been doing a better job at creating modern classics lately. I was very impressed with the Borough, and made my first full price purchase in years when I got the Urbane (the mid-sized one). I get so many compliments and looks of surprise.

The Swagger was an edgy version of earlier bags and I was tempted to pull the trigger.

I got a Nomad today, and the leather lining won me over. Finding leather lining is quite difficult these days. Even in bags over $1000. The shape is a reinterpreted classic and I like it.

I like the new direction, as I have grown up and honed in on my style, Coach is making moves to attract people like me who have thought of "trading up" but haven't found a good fit.
 
#52
applecidered said:
It can't happen. Not that in America we don't purchase American branded items, but the perceived European quality is the one thing Coach cannot achieve. Just take a look at the "premier" section of TPF. None are American brands. It's like comparing a Cadillac to BMW. With that budget people will more likely get the beemer.
Click to expand...

Please feel free to correct me if I'm wrong, but aren't Marc Jacobs and Proenza Schouler American brands in the premier section?
 
#54
applecidered said:
It can't happen. Not that in America we don't purchase American branded items, but the perceived European quality is the one thing Coach cannot achieve. Just take a look at the "premier" section of TPF. None are American brands. It's like comparing a Cadillac to BMW. With that budget people will more likely get the beemer.
Click to expand...
Your post got the wheels turning in my head.

Coach, why not go back to manufacturing in the USA?
I understand (partially) about production costs,
yet think of the appeal to consumers!
You'd be able to raise prices, and knock some of the competion out of the water.

You're not European, so no need trying to be Louis.
People may roll their eyes at that strategy.
It's like faking a French accent.
So go back to your original American roots.
That's what made you.
Accept yourself.
Don't try to be European while producing in China.
Being American and producing in China was bad enough.
That won't fool anyone, least of all savy fashionistas.

Just be American. And be real.
Work on quality and being authentic.
That will bring the loyal Coach fans back.
You're probably losing a ton of customers to MK every day.
As they are the new siggie bag, which made up part of your previous sales.
I'm not suggesting you return to the oversaturated siggie days, those days have past.
Just explaining why sales have dropped so much.
So beat them in quality.
I mean you already are, but ramp it up so you're no longer even compared.
I think offering quality coach classics and then also offering the trendy styling by SV would be a good selection in stores.

This isn't me being proudly American. I am Canadian. :p
Just considering your brand strategy.
 
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#55
Mina Harker said:
Your post got the wheels turning in my head.

Coach, why not go back to manufacturing in the USA?
I understand (partially) about production costs,
yet think of the appeal to consumers!
You'd be able to raise prices, and knock some of the competion out of the water.

You're not European, so no need trying to be Louis.
People may roll their eyes at that strategy.
It's like faking a French accent.
So go back to your original American roots.
That's what made you.
Accept yourself.
Don't try to be European while producing in China.
Being American and producing in China was bad enough.
That won't fool anyone, least of all savy fashionistas.

Just be American. And be real.
Work on quality and being authentic.
That will bring the loyal Coach fans back.
You're probably losing a ton of customers to MK every day.
As they are the new siggie bag, which made up part of your previous sales.
I'm not suggesting you return to the oversaturated siggie days, those days have past.
Just explaining why sales have dropped so much.
So beat them in quality.
I mean you already are, but ramp it up so you're no longer even compared.
I think offering quality coach classics and then also offering the trendy styling by SV would be a good selection in stores.

This isn't me being proudly American. I am Canadian. :p
Just considering your brand strategy.
Click to expand...


I have to admit that if it's a style I love, where it's made has held no influence on me. But I certainly do like the idea of production coming back to North America.
 
#57
Mina Harker said:
Your post got the wheels turning in my head.

Coach, why not go back to manufacturing in the USA?
Click to expand...

That would be great!

GA Peach said:
I agree. If I like the style, quality, and price it could be made on the MOON. :smile1:.....but made in the USA is always a plus!
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If there are two styles that are similar enough in looks and pricing, I WILL purchase the made in the U.S. bag over the made in China bag.
 
#60
GA Peach said:
Ha ha ha.........and if most of the bags made in Italy are out of my price range, what makes me think I could afford one made on the Moon! What would they charge for shipping??? :laugh:
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Now I want a Moon Bag too!! :alien:
Consider the clout associated with carrying one. :D
"Oh this ole' thing? I picked it up while Wintering on the Moon."
 
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