Not Sure How I Feel About New Business Model...
- Thread starter tonij2000
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Thanks for confirming what I was told! I was starting to question my sources, lol.
There are 11 Coach boutiques in Illinois and only 2 outlets. They would be removing most of those bags from being in reasonable shopping distance from most of the population.
If they are eliminating the MFF quality/price point from the factory stores, they would lose TONS of sales. A lot of people are only buying the MFF price point.
And most shoppers in an outlet mall are not looking for $300-$500 bags.
If boutique quality bags do wind up in the outlets, I am sure not making the 2hr round trip to go to the crowded, insane outlet very much (vs the nice upscale mall 5 minutes from my house, or the 3 boutiques in Chicago close to my office)
It just doesn't make any sense. Both the existing boutiques and existing outlets would make far less sales.
If they are eliminating the MFF quality/price point from the factory stores, they would lose TONS of sales. A lot of people are only buying the MFF price point.
And most shoppers in an outlet mall are not looking for $300-$500 bags.
If boutique quality bags do wind up in the outlets, I am sure not making the 2hr round trip to go to the crowded, insane outlet very much (vs the nice upscale mall 5 minutes from my house, or the 3 boutiques in Chicago close to my office)
It just doesn't make any sense. Both the existing boutiques and existing outlets would make far less sales.
Interesting concept...but I would NEVER pay $1,000 for a Coach bag. The brand does not have the cache to garner that premium. We'll see how that pans out.
If this is true, however, it seems like they are abandoning the entry level handbag market which is odd since lower priced MFF bags are that is one of their biggest profit drivers.
Anyway, it sort of makes sense if you consider that there are rumors that Coach is for sale so maybe they are attempting to upgrade the brand to improve the windfall.
If this is true, however, it seems like they are abandoning the entry level handbag market which is odd since lower priced MFF bags are that is one of their biggest profit drivers.
Anyway, it sort of makes sense if you consider that there are rumors that Coach is for sale so maybe they are attempting to upgrade the brand to improve the windfall.
I for one, am excited to hear of these potential changes. I haven't bought Coach in a long time...sold off most of my one time massive collection simply due to the quality of their bags going to crap.
Coach is not alone in this endeavor. LV is also headed the same route. Coach, and LV for that matter, have become all too common IMHO. This I think is pushing these changes.
While I'm never eager to pay increasing prices, I hope this will be a breath of fresh air that the brand desperately needs! I'd rather have a few exquisite, high quality bags then a hundred crappy ones....which is what resulted in my departure from the brand years ago.
I'll be keeping my eye on Coach...
Coach is not alone in this endeavor. LV is also headed the same route. Coach, and LV for that matter, have become all too common IMHO. This I think is pushing these changes.
While I'm never eager to pay increasing prices, I hope this will be a breath of fresh air that the brand desperately needs! I'd rather have a few exquisite, high quality bags then a hundred crappy ones....which is what resulted in my departure from the brand years ago.
I'll be keeping my eye on Coach...
I don't think the source intimated that they'd be eliminating the MFF price points, just that anything under 500'ish would probably be in the outlet range. That still leaves plenty of room for sub-$100 swingpacks and accessories.
In 2010'ish, there were 350 retail stores and 150'ish outlets worldwide. Now, I'd venture a solid guess there are heaps more outlets in the US, and a few more retail locations, and I'm betting most of those retail locations are overseas. I know in New England, outlets outnumber retail locations, so I think the ratio really depends on your location relative to an urban center.
Prime time for a Factory Store upgrade.
I agree
Coach cannot just declare themselves a player at the $1,000 price point after years of catering to outlet buyers who want 65% discounts of $400 bags. They have devalued their brand by sending all their bags to the outlet. They have also devalued their brand with their quality issues.
In my opinion it will be very difficult for them to repair their image and position themselves as an upscale brand.
I think some of the points are valid but think they are going a little extreme. I agree with Luv2Shop1 who said that Coach does not have the cache to garner that premium. And we know the difference between FP and MFF but the average consumer does not. A Coach is a Coach and why will Consumer A but a $500 bag when they can go to the Factory store and buy a $200 bag? So they really would need to rebrand to differentiate the two. Maybe they are planning to do so.
But I agree the return policy is too liberal. However, what I find amusing is getting rid of PCE. They are the ones offering PCE or a Facebook coupon every other week.
My outlet always had to have a Mgr approve returns but not my full price store.
But I agree the return policy is too liberal. However, what I find amusing is getting rid of PCE. They are the ones offering PCE or a Facebook coupon every other week.
My outlet always had to have a Mgr approve returns but not my full price store.
They have already started this, the factory stores that have been refitted lately look more like boutiques. Deer Park is the factory store of the future with no cash wrap desk, floating SA's that can ring up as sale by swiping the cc on their hand held devise. A much more open plan modern look, the SA's have already changed their uniform to a less formal jeans, white or blue shirt and tan shoes. Very business casual looking.
I agree with all of this, esp the last point. As far as the Factory goes, didn't they try to stop sales there and it bombed big time? So maybe they will have $498 bags for 50% off? That is still a reachable price range for many. Not to mention clearance.
I'll make up my mind when these changes take place.
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