Not Sure How I Feel About New Business Model...

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#421
happybag said:
Change continues to roll through the Coach world. I saw MIKOMEGMOM's post about Dillard's reducing the amount of inventory they order from Coach: http://forum.purseblog.com/coach-shopping/northern-cal-outlet-info-408409-255.html#post25481702
And Macy's doing the same: http://forum.purseblog.com/coach-shopping/northern-cal-outlet-info-408409-255.html#post25482109

This month's delete cycle was pretty quiet. My outlets have far fewer deletes now than they had over the summer. Meanwhile, FOS has ramped up its delete selection. Fewer deletes in factory stores + fewer opportunities to get a clearance bag at department stores = Coach retains more control over discontinued item inventory. Then they can funnel it all to FOS and deny certain customers access (a.k.a. getting locked out) in the hopes to steer customers towards purchasing from the channels (FP) and at the prices (FP) Coach wants them to pay, and theoretically make it harder for bulk resellers to get the goods.

Not sure where Zappos fits into the model, though, or whether Zappos will be a long-term channel or was a one-time pilot to boost full-price sales.
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Don't forget the resellers also use Macy's, Dillards and the other retail stores, who have very good deals...usually once a month. I wonder if Macy's has purchase limits?

Oh, and I agree with less deletes...the 2 outlets I frequent have hardley any deletes since end of Aug, early Sept. Used to be I couldn't decide what to get, now it's I can't find anything.
 
#422
happybag said:
Change continues to roll through the Coach world. I saw MIKOMEGMOM's post about Dillard's reducing the amount of inventory they order from Coach: http://forum.purseblog.com/coach-shopping/northern-cal-outlet-info-408409-255.html#post25481702
And Macy's doing the same: http://forum.purseblog.com/coach-shopping/northern-cal-outlet-info-408409-255.html#post25482109

This month's delete cycle was pretty quiet. My outlets have far fewer deletes now than they had over the summer. Meanwhile, FOS has ramped up its delete selection. Fewer deletes in factory stores + fewer opportunities to get a clearance bag at department stores = Coach retains more control over discontinued item inventory. Then they can funnel it all to FOS and deny certain customers access (a.k.a. getting locked out) in the hopes to steer customers towards purchasing from the channels (FP) and at the prices (FP) Coach wants them to pay, and theoretically make it harder for bulk resellers to get the goods.

Not sure where Zappos fits into the model, though, or whether Zappos will be a long-term channel or was a one-time pilot to boost full-price sales.
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I was also told is Coach is going to drastically cut inventory all around so there will be very little or no deletes at all. The plan is for things to sell out by the decrease in quantity and less turnover in styles. Now we all know that won't happen on all bags but we won't be seeing the deletes we used to. Of course this is assuming the information is right but, I think we are already seeing some changes.
 
#423
I feel like the outlet has phases. Sometimes there are tons of deletes and sometimes not. It seems to be seasonal to some extent. So we will have to see what happens. Lately there hasn't been much at the outlet but FOS has had some recent sales and f you look at the FP boutique they are still making so many bags that are I find it hard to believe that these are going to the outlet at some point. When they actually start to reduce stock at the boutique the I think that we will see less at the FOS/outlet. But time will tell.
 
#424
Freak4Coach said:
I was also told is Coach is going to drastically cut inventory all around so there will be very little or no deletes at all. The plan is for things to sell out by the decrease in quantity and less turnover in styles. Now we all know that won't happen on all bags but we won't be seeing the deletes we used to. Of course this is assuming the information is right but, I think we are already seeing some changes.
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I do think the same- their recent business model must have affected their sales. I want to stock up on deletes while the fun lasts, and then scale back my purchases anyway.
 
#427
I am not paying $500+ for a bag that's made in china. Root's bags cheapest one so far $88 and made in canada. Really coach, if you want my money you have to work harder than changing the price tag.

Coach also needs to realize that middle class folks make up more of the population than the wealthy. Folks who can put aside $100 to $200 for a bag cannot put aside $1000 for a bag. They can make a mortgage payment with that amount or pay lots of bills. A $100 or $200 bag is like to some folks a special treat. Like a present to one's self. It's expensive to them if they're working min wage and paying the bills around the house. I know it is to me. But I love the colours and style and it's something I'll try to put some money aside for. If it's goes past the $500 range, I won't even look at it as it's beyond my budget. So they'll have lost me as a customer, and there is no coach outlet where I live, I only have the fp stores.
 
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#428
Coach makes most of their money off the outlets. I think the retail stores actually lose money (though not sure). Coach needs the cache of the FP stores for their brand and then they can crush it at the outlets.

The store manager I talked to said coach is going to make a lot more high priced bags for the boutiques and will come out with a clothing line too.
 
#429
Galaxygrrl said:
Coach makes most of their money off the outlets. I think the retail stores actually lose money (though not sure). Coach needs the cache of the FP stores for their brand and then they can crush it at the outlets.

The store manager I talked to said coach is going to make a lot more high priced bags for the boutiques and will come out with a clothing line too.
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I pay a lot more for my bags than I do my clothes. I am curious to see how well the clothing line does. I love my Coach trench, but even at the outlet price, it was a lot more than I would usually spend on something like that.

I was expecting to see these changes happening already, and although there are a few really expensive bags, like the $20,000 alligator bag, I'm pretty surprised at how many really nice FP bags are still priced around $300.
 
#430
bluebellrose said:
I am not paying $500+ for a bag that's made in china. Root's bags cheapest one so far $88 and made in canada. Really coach, if you want my money you have to work harder than changing the price tag.

Coach also needs to realize that middle class folks make up more of the population than the wealthy. Folks who can put aside $100 to $200 for a bag cannot put aside $1000 for a bag. They can make a mortgage payment with that amount or pay lots of bills. A $100 or $200 bag is like to some folks a special treat. Like a present to one's self. It's expensive to them if they're working min wage and paying the bills around the house. I know it is to me. But I love the colours and style and it's something I'll try to put some money aside for. If it's goes past the $500 range, I won't even look at it as it's beyond my budget. So they'll have lost me as a customer, and there is no coach outlet where I live, I only have the fp stores.
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Simmer down now. The original post was made 5 months ago, and there have been no signs of the boutiques doing away with bags under $500 or $1,000. Tons of stuff still under $400, including the most popular Phoebes (which are $298 and $246 with PCE).
 
#431
I've noticed that the new bags coming out at the outlet are of better quality and design than they used to be. There are some of the new MFF bags that I would purchase, but as long as I can find some deletes I want at a lower price than the new MFF - I'll get the deletes while I can. Especially with the 50% discounts and then when they move to clearance an additional 30% to 40% discount.

My attitude is possibly why there will be fewer and fewer FP deletes going to the outlet. From a consumer viewpoint that would not be good, (because I want the best deal I can get on a bag). But from a corporate, business viewepoint that is good.

To be fair to the new MFF line, there are some that I would purchase. But there are some I saw the other day that to my personal taste are hideous. But that's personal preference.

Just my two cents. It's interesting to see that some of the trends predicted are starting to happen in some areas of the country.
 
#432
QueenLouis said:
Simmer down now. The original post was made 5 months ago, and there have been no signs of the boutiques doing away with bags under $500 or $1,000. Tons of stuff still under $400, including the most popular Phoebes (which are $298 and $246 with PCE).
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Small Phoebe is $328 and large is $398. Some of the needlepoint/fabric versions might be priced lower. Still under $400, yes, but wanted to be accurate with prices.

I think it's hard to ignore that there have been changes this year...the whole vibe of the outlets have changed, we're seeing crackdowns in return policy, packaging, etc. Granted, it's not consistent everywhere, but then again, most of us would probably fall over dea if Coach did anything in a consistent manner... ;)
 
#433
My favorite FP store (at South Coast Plaza) is being remodeled right now. The SA told me they will reopen with a full men's line, and also will carry the line of Coach clothing. They already carried the shoes, and the top if the line bags, so I'm thinking they will be more in line with the other many designer boutique shops in the mall like Burberry and even Michael Kors.

I'm not sure about them dropping the lower priced bags from all the FP stores though. There have been so many bags coming out lately like the Phoebe, Madeline, and Sadie, that are in that lower price range, that it would seem to be contrary to that end. I'm expecting a lot of those bags to hit the outlets and FOS.

As far as deletes not being carried at the outlets go, I've been hearing this since I first joined tpf and it still remains the method in which Coach sells their overstock and returns. Though the FOS may be successful in that, but not on the "invitation only" method they now employ.

RE: stock at the outlets. The stock at the outlets does vary by month, and when they transfer the end of season deletes (like the just passed summer deletes) the outlets are going to have more on hand than they do other months.
 
#434
katierose said:
My favorite FP store (at South Coast Plaza) is being remodeled right now. The SA told me they will reopen with a full men's line, and also will carry the line of Coach clothing. They already carried the shoes, and the top if the line bags, so I'm thinking they will be more in line with the other many designer boutique shops in the mall like Burberry and even Michael Kors.

I'm not sure about them dropping the lower priced bags from all the FP stores though. There have been so many bags coming out lately like the Phoebe, Madeline, and Sadie, that are in that lower price range, that it would seem to be contrary to that end. I'm expecting a lot of those bags to hit the outlets and FOS.

As far as deletes not being carried at the outlets go, I've been hearing this since I first joined tpf and it still remains the method in which Coach sells their overstock and returns. Though the FOS may be successful in that, but not on the "invitation only" method they now employ.


RE: stock at the outlets. The stock at the outlets does vary by month, and when they transfer the end of season deletes (like the just passed summer deletes) the outlets are going to have more on hand than they do other months.
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i sure hope you are right...i couldn't live without my deletes!
 
#435
Canderson22 said:
Small Phoebe is $328 and large is $398. Some of the needlepoint/fabric versions might be priced lower. Still under $400, yes, but wanted to be accurate with prices.

I think it's hard to ignore that there have been changes this year...the whole vibe of the outlets have changed, we're seeing crackdowns in return policy, packaging, etc. Granted, it's not consistent everywhere, but then again, most of us would probably fall over dea if Coach did anything in a consistent manner... ;)
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I was listing the "with PCE" price. Assuming that the vast majority of us restrict most of our boutique purchases to PCEs. I have not purchased a single boutique item without PCE in years.
 
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