Michael Kors Nordstrom stores are scrapping Michael Kors handbags
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I agree with the others, if anyone feels the need to look down on someone who sports a $400 handbag vs. a $4000 one, they need to take a good hard look in the mirror and figure out where they went wrong with on judging others over petty nonsense, and deal with those personal demons.
Out of my personal collection, I have about 5 MK bags, majority of mine are Coach, and the saffiano on my last two were hands down nicer than the crossgrain leather of Coach. I feel like it has been stepped up. I own a Jet Set tote from 3 yrs ago in the Palm green, and it seems to be more prone to dents vs. my newest ones. I do, however, prefer the glove tanned leather of Coach over MK's other leather options. I feel like with a lot of these contemporary luxury designer brands, there is something for everyone.
Out of my personal collection, I have about 5 MK bags, majority of mine are Coach, and the saffiano on my last two were hands down nicer than the crossgrain leather of Coach. I feel like it has been stepped up. I own a Jet Set tote from 3 yrs ago in the Palm green, and it seems to be more prone to dents vs. my newest ones. I do, however, prefer the glove tanned leather of Coach over MK's other leather options. I feel like with a lot of these contemporary luxury designer brands, there is something for everyone.
This thread completely deviated from the original topic, which focused more on Nordstrom's business strategy through repositioning and an analysis of consumer trends and preferences. One thing that is an unfortunate result of this is how people begin to "bash" contemporary designers because the price points are obviously a fraction of what individuals pay for premier designer brands. I think it's important to realize that even $300-$500 is above what the average person (outside of tPF) would pay for a handbag - I know many people who are financially well off and still would think twice about paying even $150 for a bag. However on tPF, $300 is seen as the minimum or lower-end of the spectrum because there are people purchasing bags easily over $5k-$10k. It's distasteful to make judgements based on the spending habits we see on tPF because we don't consider additional factors such as disposable income, additional hobbies and interests outside handbags (travelling, entertainment, fitness, health and beauty, etc.), and our sources of income.
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Found this new article:
http://www.cnbc.com/2016/08/10/michael-kors-is-fed-up-with-department-stores-damaging-its-brand.html
[URL='http://data.cnbc.com/quotes/KORS']Michael Kors has had enough with department stores' excessive discounting.
After reporting a 7 percent decline in its wholesale business during the fiscal first quarter, CEO John Idol told analysts that come February, the accessories brand will no longer participate in department stores' broad-based friends and family sales, or accept coupons for its products there.
The label will also move forward with its strategy to cut back on the amount of merchandise it ships to these retailers, as it looks to rebuild the pricing power it's lost with shoppers. Because the brand is constantly on sale, consumers have forgotten the true value of the product, Idol said.
These discounts once again damaged its revenue and profit margins in both wholesale and stand-alone stores, Idol added. Michael Kors' same-store sales slid 7.4 percent during the fiscal first quarter, steeper than Retail Metrics' forecast for a 4.2 percent decline.
"It's creating confusion in the consumers' mind relative to the value of the Michael Kors brand when it's being seen so often on sale in so many different places," Idol said. "We have to correct something that we think is actually having a negative long-term effect for the brand."
Because of this pullback, Idol told investors they should expect to see further degradation at department stores for the remainder of the year and into 2017. The company has already started dialing back the number of goods it sends to department stores, a strategy it had previously announced.
Kors' comments come just one day after competitor Coach said that it will exit about 25 percent of the 1,000 department stores where it sells its product. Like Kors, Coach is trying to regain control over the prices charged for its handbags. Unlike Coach, Kors will not pull its brand from any locations.
Michael Kors' products are sold at retailers including Nordstrom and Bloomingdale's. Macy's generates the largest chunk of its wholesale revenue and accounted for 12.7 percent of its total sales last year.
The company reported fiscal first-quarter earnings of 88 cents a share on revenue of $987.9 million. That compares with 87 cents a share and $986 million in sales during the prior-year period. Analysts had been expecting the company to report earnings per share of 74 cents on revenue of $953 million, according to Thomson Reuters estimates.[/URL]
http://www.cnbc.com/2016/08/10/michael-kors-is-fed-up-with-department-stores-damaging-its-brand.html
[URL='http://data.cnbc.com/quotes/KORS']Michael Kors has had enough with department stores' excessive discounting.
After reporting a 7 percent decline in its wholesale business during the fiscal first quarter, CEO John Idol told analysts that come February, the accessories brand will no longer participate in department stores' broad-based friends and family sales, or accept coupons for its products there.
The label will also move forward with its strategy to cut back on the amount of merchandise it ships to these retailers, as it looks to rebuild the pricing power it's lost with shoppers. Because the brand is constantly on sale, consumers have forgotten the true value of the product, Idol said.
These discounts once again damaged its revenue and profit margins in both wholesale and stand-alone stores, Idol added. Michael Kors' same-store sales slid 7.4 percent during the fiscal first quarter, steeper than Retail Metrics' forecast for a 4.2 percent decline.
"It's creating confusion in the consumers' mind relative to the value of the Michael Kors brand when it's being seen so often on sale in so many different places," Idol said. "We have to correct something that we think is actually having a negative long-term effect for the brand."
Because of this pullback, Idol told investors they should expect to see further degradation at department stores for the remainder of the year and into 2017. The company has already started dialing back the number of goods it sends to department stores, a strategy it had previously announced.
Kors' comments come just one day after competitor Coach said that it will exit about 25 percent of the 1,000 department stores where it sells its product. Like Kors, Coach is trying to regain control over the prices charged for its handbags. Unlike Coach, Kors will not pull its brand from any locations.
Michael Kors' products are sold at retailers including Nordstrom and Bloomingdale's. Macy's generates the largest chunk of its wholesale revenue and accounted for 12.7 percent of its total sales last year.
The company reported fiscal first-quarter earnings of 88 cents a share on revenue of $987.9 million. That compares with 87 cents a share and $986 million in sales during the prior-year period. Analysts had been expecting the company to report earnings per share of 74 cents on revenue of $953 million, according to Thomson Reuters estimates.[/URL]
I was at Nordstrom today and didn't see any of Michael bags in store. The weird thing is they still have them online but not one in the store. And if Michael Kors is so concerned he should of seen His Valley Fair store massive reseller in there buying 4 to 5 at least of the same sale bags and many different styles I saw at least 7 big bags filled with the different bags and this I not the first time I have seen this. It's unreal and makes me so mad because those get taken away from us the ones you love them. There should be a better limit set it's ridiculous!! Sorry I just want to go off on a big rant but I won't.
It's not just department stores damaging its brand - it's MK itself. I've been into MK for the past 5 years or so and the quality has definitely gone down hill. Either that or quality control has gotten a bit lax. And now with MK doing these bonded leather bags, I'm not sure why MK can't see they are partly at fault in the decline of the brand. I really want to love Mk again and I always go back and check out the new colors and styles when I'm shopping, but the quality just doesn't compare to some of the Coach bags I've purchased as of late. Do leather and do it well. Personally, I'm tired of saffiano. It's all I've seen on the more popular MK bags these past few years and I'm starting to miss the squishy, soft leathers which just feel more luxurious. Granted, the Coach bags I've purchased lately are twice as much if not more than the price of the MK bags I used to purchase (Selma & Hamilton), but I'd be willing to buy more Selmas and Hamiltons at higher prices if MK bumped up the quality (better leather, hardware, etc). I've had issues with chipping hardware, stitching coming undone, brand new saffiano bags with dents...I just can't pay upwards of $300 for that. Do it right and I'd be willing to pay more.
I'm glad they'll at least be scaling back the amount of bags being sent to department stores. I just can't buy MK full price anymore when I know there will be 10 of the bag I want on the clearance table within a month. That on top of the quality issues, I just can't do it.
I've noticed the decline of Coach and now MK - many contemporary brands due to over saturation - way past the tipping point now I think. Anyway, here in Vancouver BC, MK bags are sold at Holt Renfrew and Nordstrom - maybe just maybe at some boutiques along south Granville. Then we have several MK Boutiques - no wonder the brand is over saturated. MK bags do appear at Winners once in awhile too!!!! I'm not surprised at all to hear that Nordstrom will discontinue the brand - so much competition, so much stuff.
I prefer to buy my MK at department stores but that is because of store cards and rewards coupons . I own a variety of bags from coach to LV and Chanel . I think this is a business move and not anything to do with quality or how people view MK .
Agreed, it seems to be a shift to give designers more control over their products.
I own a good variety of handbags, anywhere from no-names, to mid-range, to some expensive ones such as Gucci, LV, and Burberry. I own about 6 Michael Kors and I love every single one of them and I've never experienced quality issues. The most recent one I bought was the All In One Mercer. Absolutely love it and the quality is amazing. Personally I buy what I like and what I can afford. I think if you look at every designer, they've all done similar styles at some point or another. I don't believe they are necessarily "copying" each other.
I own around 10 MK bags. Some of them, like my Grape Selma, I carry to death and they still look great. These Saffiano leather bags wear like iron! The only time I have actually had issues is from Macy's when the bags are squeezed into a small box and have handle dents etc
My LV Montaigne in Grape Empreinte leather (totally different color than the MK Grape). I bought new from LV directly and paid well over $3k for it. It is the most expensive bag I own. I get more compliments on the MK than the LV.....go figure.
I do understand Nordstrom's move. They generally do not discount except during their 2-3 sales they have per year. Even then, their 30% discounts do not compare to Macy's or even the MK stores. So the bags probably are not moving. I don't think it has anything to do with the quality of the bags, image etc, but purely financial
My LV Montaigne in Grape Empreinte leather (totally different color than the MK Grape). I bought new from LV directly and paid well over $3k for it. It is the most expensive bag I own. I get more compliments on the MK than the LV.....go figure.
I do understand Nordstrom's move. They generally do not discount except during their 2-3 sales they have per year. Even then, their 30% discounts do not compare to Macy's or even the MK stores. So the bags probably are not moving. I don't think it has anything to do with the quality of the bags, image etc, but purely financial
