This is exactly what we've noticed and predicted, it will only get worse when the new hideous (my opinion, sorry to those who like it) Fall line comes out.
Interesting Article on Forbes on Coach Sinking North American Sales
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Here's another article that pretty much says the same thing:
http://consumerist.com/2014/04/29/c...s-by-offering-pricier-handbags/#more-10161767
Honestly if that is how they are going to roll then I think I'll probably lose interest quickly.
http://consumerist.com/2014/04/29/c...s-by-offering-pricier-handbags/#more-10161767
Honestly if that is how they are going to roll then I think I'll probably lose interest quickly.
Amen! I stopped paying attention to Louis Vuitton due to constant ridiculous price increases. What chance does Coach have?
Well, if that is the case they will probably drastically reduce their number of stores. I can assure you that even though there is some affluence in my area (most likely spent places other than Coach), that the bulk of the people going to the Coach store are average middle class people. They won't go there to buy 1000K + bags. The store is already fairly empty...it will just get emptier quite quickly.
"Sales for the New York-based designer slipped 7 percent in the recent quarter while profit declined 20 percent. Cold weather and an unseasonably late Easter didnt help, but the real culprit was Coachs traditional moneymaker, its bag business."
The article is speaking of Coach in its totality. Meanwhile other articles about the stock today highlight a rapid decline (worst ever) in SSS, and foot traffic and NA sales....Lots of news about the stock today when you google about it.
+1. I'm in the process of selling most of my Coach bags as well, and it's almost sad how little they fetch in the resale market, no thanks to brand dilution
Every once in a while I'll visit the Coach website to checkout their styles, and while some of them are quite nice, I'd rather spend that money on a preloved LV or Prada.
As predicted, reducing online promotions contributed to Coach sales falling 21 percent in the third quarter.
We experienced sharply lower traffic levels in our stores while our Internet results were impacted by our strategic decisions.
http://www.businessweek.com/news/20...orms-rivals-cause-north-american-sales-plunge
It's easy to stay away when they keep toying with 30% then 20% off FOS sales, then 40% off deletes and back to 50% off deletes, then dropping men's full price products from clearance and raising prices for MFF products at retail stores.
We experienced sharply lower traffic levels in our stores while our Internet results were impacted by our strategic decisions.
http://www.businessweek.com/news/20...orms-rivals-cause-north-american-sales-plunge
It's easy to stay away when they keep toying with 30% then 20% off FOS sales, then 40% off deletes and back to 50% off deletes, then dropping men's full price products from clearance and raising prices for MFF products at retail stores.
Seriously. I was excited to get the free ship email for FOS the other day, but when I logged on, the purse I had been eyeing was magically $10 more. And a few others that I've been watching as well.
Seriously. I was excited to get the free ship email for FOS the other day, but when I logged on, the purse I had been eyeing was magically $10 more. And a few others that I've been watching as well.
Right? I saw that type of thing too. They sent a mail with an hour based discount, a one day promo. I checked the prices and they were higher than the day before so the "20%" discount really wasn't 20%.
It's like a game to me, where you grab a price out if a hat - you hope you got a good one, but it's hard to say.
I'm confused...in my opinion, the solution would be to introduce products by season, like the higher end brands do, and keep the outlet lines separate. Not sure if raising prices will do the trick for their boutique offerings though-the reason why I buy the borough, instead of the Prada Saffiano Lux say, is partly because of that difference in $$. Also I like the quality of the boroughs, in relation to their prices.
I've noticed that too and I think that's with every free ship offer. This last time, the purse that I paid 250 went up to 274 with the "free" ship and a wallet that I've been watching went from 64 to 72. Now that the free ship deal is over, the prices went back down.Seriously. I was excited to get the free ship email for FOS the other day, but when I logged on, the purse I had been eyeing was magically $10 more. And a few others that I've been watching as well.
The business model that worked for Coach was: high-quality long-wearing leather goods, mid-range price point, iconic features (turnlock, stitching, hangtag). The Coach bag didn't have to scream "Coach"; like an Hermes, you knew it when you saw it. But, unlike Hermes, Coach was and is an aspirational brand that consumers could and can aspire to.
Over the years, Coach strayed from its successful business model. Coach flooded the market with affordable signature bags. Everyone has one, the bags scream "Coach", you don't look at the bag and think "nice bag, where'd she get it", and search for the more subtle iconic features of luxury bags. You think, "everyone has that."
When the market is saturated, a product is no longer a luxury item. And the brand is no longer an aspirational brand. Pretty simple.
As for some of Coach's competitors that are mentioned in this thread, I'm not impressed ... yet. The only reason a Michael Kors bag has ever caught my eye is because of its incredibly large hangtag or because it is a signature bag. In other words, the bag is screaming "Michael Kors", not saying "I'm a beautiful bag." Kate Spade bags have only been around since 1993. And, talk about unexciting? Some of them look like I stitched together a few pieces of leather on my sewing machine. Yes, they're that unshapely. Trendy, maybe. But not beautiful bags. As for staying power, we'll see if either of these designer's bags have the staying power to sell as "vintage". Oh, and when you do want to sell that vintage bag, how are you going to authenticate it?
I'll stick with Coach for now.
Good luck, Coach. Your signature items are what are selling in overseas markets. They're also what is undermining your brand in the US. Figure it out. You're an attainable aspirational brand. Make it work.
Over the years, Coach strayed from its successful business model. Coach flooded the market with affordable signature bags. Everyone has one, the bags scream "Coach", you don't look at the bag and think "nice bag, where'd she get it", and search for the more subtle iconic features of luxury bags. You think, "everyone has that."
When the market is saturated, a product is no longer a luxury item. And the brand is no longer an aspirational brand. Pretty simple.
As for some of Coach's competitors that are mentioned in this thread, I'm not impressed ... yet. The only reason a Michael Kors bag has ever caught my eye is because of its incredibly large hangtag or because it is a signature bag. In other words, the bag is screaming "Michael Kors", not saying "I'm a beautiful bag." Kate Spade bags have only been around since 1993. And, talk about unexciting? Some of them look like I stitched together a few pieces of leather on my sewing machine. Yes, they're that unshapely. Trendy, maybe. But not beautiful bags. As for staying power, we'll see if either of these designer's bags have the staying power to sell as "vintage". Oh, and when you do want to sell that vintage bag, how are you going to authenticate it?
I'll stick with Coach for now.
Good luck, Coach. Your signature items are what are selling in overseas markets. They're also what is undermining your brand in the US. Figure it out. You're an attainable aspirational brand. Make it work.
Amen to that! I'm tall AND plus-sized and the last Coach strap that worked as a cross body for me is one I purchased in the '90s ... or maybe I was just less plus-sized in the '90s.YES, a thousand times over! Coach has TOTALLY ignored the Plus-size market, including the fact that many of those women have bought Coach products for much of their adult life. Hey fellas, sorry we can't be all size 6's - believe me, most of us would if we could be but it's not as easy as you seem to think.
Not only are there no clothes for us, but even handbags are in short supply. Straps are too short and bags too small for many of us. Crossbody bags are available in hundreds of styles, but some plus size women think they're just too small and look strange on a larger woman since they all seem to be small or mini bags. Larger bags with longer TRUE crossbody straps please - A 35-inch long strap is NOT crossbody unless you're a hobbit!
Shoes? HOW ABOUT SOME WIDE WIDTHS, FOLKS???
Jewelry? Necklace lengths have been 18 inches, sometimes less, since the days of Noah, while the average American (and not just us!) sometimes finds that length too short. How about some options? Larger and longer bracelets? And especially how about some larger ring sizes? Major US jewelry makers like James Avery have had a range of sizes up to 10 for years now, why doesn't Coach?
OK, another rant over. Not that Coach will ever listen. Or care.
