Interesting Article on Forbes on Coach Sinking North American Sales

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#152
The reason while Coach always sees growth in China and not in the U.S. is because Coach is actually expensive and exclusive in Asia. The company only sells FP product in many international territories and FP product is made with great leather, better colors, and better designs.

The only way for Coach North American sales to rise is to really scrap ALL the cheap MFF product off the table and create a brand new slate of affordable luxury product that doesn't look and feel cheap. No one believes the inflated MSRP of MFF product and even at 50 percent off the price is questionable.

Coach FP should focus on the $600 to $1200 bags that are gaining traction. Coach Factory should focus on high quality yet more affordable $200 to $400 bags. Coach CAN create amazing $200 to $400 range product since they operate on a scale that can drive down their cost to a level beyond that of Michael Kors or Kate Spade. They need to use their manufacturing scale to make better product, then customers will think they are worth buying even at a lesser discount.
 
#154
iris520 said:
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. :huh:
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Ah, but you know they never will, especially as they push to be more upscale. It's the same reason so many designers stop at 12 or 10 - it's a status thing. It's ridiculous because the average American woman is said to be size 14. Also, it's cheaper to produce bags with shorter straps, non-adjustable straps, etc.
 
#155
tickedoffchick said:
Ah, but you know they never will, especially as they push to be more upscale. It's the same reason so many designers stop at 12 or 10 - it's a status thing. It's ridiculous because the average American woman is said to be size 14. Also, it's cheaper to produce bags with shorter straps, non-adjustable straps, etc.
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Lucky for me, the one I bought in the 90s is still going strong. :cool:
 
#156
justdefend said:
The reason while Coach always sees growth in China and not in the U.S. is because Coach is actually expensive and exclusive in Asia. The company only sells FP product in many international territories and FP product is made with great leather, better colors, and better designs.

The only way for Coach North American sales to rise is to really scrap ALL the cheap MFF product off the table and create a brand new slate of affordable luxury product that doesn't look and feel cheap. No one believes the inflated MSRP of MFF product and even at 50 percent off the price is questionable.

Coach FP should focus on the $600 to $1200 bags that are gaining traction. Coach Factory should focus on high quality yet more affordable $200 to $400 bags. Coach CAN create amazing $200 to $400 range product since they operate on a scale that can drive down their cost to a level beyond that of Michael Kors or Kate Spade. They need to use their manufacturing scale to make better product, then customers will think they are worth buying even at a lesser discount.
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ITA with all of this!
 
#157
It's too bad... I was just starting to get into coach....

But i also hope that an increase in price means an increase in quality. I went to a coach factory store yesterday and it was appalling,,, the bags there were of terrible quality and even with an extra 50% off coupon, the bags weren't worth it. I'd pay more for better quality, not just to join some kind of exclusive expensive club.
 
#158
Momo jan said:
It's too bad... I was just starting to get into coach....

But i also hope that an increase in price means an increase in quality. I went to a coach factory store yesterday and it was appalling,,, the bags there were of terrible quality and even with an extra 50% off coupon, the bags weren't worth it. I'd pay more for better quality, not just to join some kind of exclusive expensive club.
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At the factory stores, look for the deletes from the full price stores. You'll get the quality and the savings.
 
#159
iris520 said:
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.
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Very well said!!
 
#160
iris520 said:
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.
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Well said. I'm appreciating posts such as these, that offer salient ideas and specific descriptions, vs personally emotional and rather vacuous responses that carry insidious slams (I.e., that's just because those bags are just beyond your pay grade, that's just being a downer, that's just sophomoric/characteristic of no business sense) that are concomitantly touted as upbeat. I especially like your closing statement about how Coach remains an attainable aspirational brand. Let's hope they can make it work. We know it may be a long haul for them to do that (as high profile Wall Street analysts remind) but it's not impossible.


Sent from my iPad using PurseForum
 
#161
proffashionista said:
Well said. I'm appreciating posts such as these, that offer salient ideas and specific descriptions, vs personally emotional and rather vacuous responses that carry insidious slams (I.e., that's just because those bags are just beyond your pay grade, that's just being a downer, that's just sophomoric/characteristic of no business sense) that are concomitantly touted as upbeat. I especially like your closing statement about how Coach remains an attainable aspirational brand. Let's hope they can make it work. We know it may be a long haul for them to do that (as high profile Wall Street analysts remind) but it's not impossible.


Sent from my iPad using PurseForum
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Again - Bravo! And well said!

(I had this same response to a similar comment of yours on another thread - I'm basically repeating myself - but felt it needed to be said here, too)
 
#162
NutsAboutCoach said:
Again - Bravo! And well said!

(I had this same response to a similar comment of yours on another thread - I'm basically repeating myself - but felt it needed to be said here, too)
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Yes, I remember that on the other thread, NutsAboutCoach, and I want say I appreciate you and proffashionista for always keeping it classy..........;)
 
#163
proffashionista said:
Well said. I'm appreciating posts such as these, that offer salient ideas and specific descriptions, vs personally emotional and rather vacuous responses that carry insidious slams (I.e., that's just because those bags are just beyond your pay grade, that's just being a downer, that's just sophomoric/characteristic of no business sense) that are concomitantly touted as upbeat. I especially like your closing statement about how Coach remains an attainable aspirational brand. Let's hope they can make it work. We know it may be a long haul for them to do that (as high profile Wall Street analysts remind) but it's not impossible.


Sent from my iPad using PurseForum
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I agree on muting emotional and toxic posters. :cool:

I also agree that Coach could possibly reform it's image and approach in the long run, but in my opinion, Coach would need to spin off the factory line into a separately named line like Chloe, Mark Jacobs, Alexander Mcqueen, and other brands do.

I also think some core styles would have to be kept from season to season in the premier line like pretty much every premier brand does. When I go to Alexander Mcqueen I expect to find a selection of skull and knuckle clutches every season. When I go to Balenciaga I expect to find City bags every season, same for Chanel, Hermes, Gucci etc....

Just my thoughts.....
 
#165
abwd said:
Very well said!!
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awwwww, thanks :cool:

proffashionista said:
Well said. I'm appreciating posts such as these, that offer salient ideas and specific descriptions, vs personally emotional and rather vacuous responses that carry insidious slams (I.e., that's just because those bags are just beyond your pay grade, that's just being a downer, that's just sophomoric/characteristic of no business sense) that are concomitantly touted as upbeat. I especially like your closing statement about how Coach remains an attainable aspirational brand. Let's hope they can make it work. We know it may be a long haul for them to do that (as high profile Wall Street analysts remind) but it's not impossible.

Sent from my iPad using PurseForum
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Fingers crossed! I work in New York City and ALWAYS notice nice bags. This morning, I was happy to see some young women getting off at the Wall Street subway stop sporting fashionable leather Coach bags. I also saw a lot of people sporting purse designs that I consider Coach classic knock-offs. And, I'm encouraged by the fact that when you search Coach style numbers on the internet, you see a lot of celebrities sporting Coach leather. Hope they can hold on, 'cause nothing feels quite as nice as their glove-tanned leather!

ltbag said:
I agree on muting emotional and toxic posters. :cool:

I also agree that Coach could possibly reform it's image and approach in the long run, but in my opinion, Coach would need to spin off the factory line into a separately named line like Chloe, Mark Jacobs, Alexander Mcqueen, and other brands do.

I also think some core styles would have to be kept from season to season in the premier line like pretty much every premier brand does. When I go to Alexander Mcqueen I expect to find a selection of skull and knuckle clutches every season. When I go to Balenciaga I expect to find City bags every season, same for Chanel, Hermes, Gucci etc....

Just my thoughts.....
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Yup, they definitely need to get a handle on the factory line and approach. And I totally agree re core styles. They have so many fantastic core styles. When are they going to figure out that they need to keep them and keep them exclusively in their FP stores??
 
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