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

[Robicslady]

I agree w/ this new strategy being like the JCP debacle! Fail much? LOL! Here's another way this might go: gals start selling off more bags to get The One must-have bag. Then the outlet is too much money for the average bargain-hunter so those gals start shopping more resale options like ebay. Then outlets fail.

 

[soccergirly87]

Well, whatever.

I don't feel so bad for buying so many bags lately! Lol Going to the outlet tonite maybe I'll "stock up" haha

Ha, ha, me either! I plan on using my for years to come!!!!

 

[giagnm]

Isn't excluding Phoebe from PCE a test of this?
Exclude the hottest bag and see if it will sell anyway.

I know many got it with PCE anyway but looks like that was not the intent.

It may enrage consumers. Why exclude one line or bag from PCE? They created this monster. Coach started out as an exclusive, leather brand. If you purchased one it meant something because (1) it was expensive at the time and (2) you had to save up for it if you weren't wealthy. In my opinion, the introduction of the signature lines has changed their brand. Coach is now identified by signature. People are amazed when they ask who made the leather bags I carry and I say Coach. NOW they want to go back to way things used to be?

 

[kgus22]

Are these items (perfume, shoes, jewelry) the regular items or mff?

i don't know about the shoes, but at least some of the jewelry and perfume were the regular items.

 

[AngelSlapsAlot]

my outlet is one of the new upgraded ones. it's a more 'visual' store. much more floor space, the SA's with portable checkouts (which confuse old people). They carry perfume, shoes and jewelry now, which is nice. But not a bigger deletes section, they just sprawl more of the MFF stuff everywhere and cram the deletes into a small section.

Are these items (perfume, shoes, jewelry) the regular items or mff?

This is what my outlet is like. I've always wondered if the jewelry is the same as sold in boutiques? I don't really look at the jewelry on coach.com so I've never compared, but it's the same jewelry I see on FOS.......Actually, its only bangles and other bracelets, i cant remember seeing necklaces. Either way, I really like the jewelry

They also have shoes, coats and perfume. I like the mobile checkout, when working with a SA I can check out quickly and get out lol

 

[debbiesdaughter]

Let's hope that this prediction is just a rumor...

That website Bag, Borrow or Steal? They stopped selling previously owned Coach (and other 'lower end' brands) and now exclusively deal in the luxury designers. Bummed me OUT. I scored about four nice bags there last summer. Two Coach, a Kooba, and a Cole Haan. Anyway, there's an example of a merchant who jettisoned the 'lower end' brands in favor of the luxury market and their research must have indicated this was the right move for them. They are still around... but I can't afford them anymore.

So I hope this won't be Coach's way. For I won't be shopping for $400 + bags in an outlet store.

OMG Me too!!! I scored Michael Kors, Tory Burch and Coach there all the time now I don't even bother because I am like you can't afford it! I wonder how they are doing because the lower end bags SOLD and FAST! Hope it works out for them but they lost a customer in me!

As far as Coach.....if this is true info then I am seeing some interesting things happening and lots of customers making some new choices.

 

[Meganallise]

Nothing sells bags like a wide spread panic of changes a-coming... Maybe it is a master plan to get us all to spend, spend, spend... No changes just an evil genius somewhere counting the beans....

My first thought was damn I better get what I think I need now just incase this goes through... It worked, I am headed to the outlet!

and on the flip side I thought I better decide on the two bags I am on the fence about as well... So this can back fire on Mr. Evil Genius if we all return our hoards...

Oh wait those returns could work in my favor! The circle of life...

 

[Porter4]

Interesting. Return policy is ridiculous. I can't imagine it being anything anything but a total PITA. If it's gotten to the point that a regular customer buying a FP bag ends up with one that has been USED and returned... well it's time to evaluate returns. Great CS is great but don't let the customer take advantage sheesh lol...

And I'm not opposed to rebranding the boutique, either if that's how they want to do it. But they will need to fix the outlet mess by defining the outlet line as an OUTLET line first if they want people to buy into the "boutique" as being a real "boutique" which is really the problem IMO. But whatever.

I am all for a change in the return policy, as people are abusing it! They redefine what it means to "use" a bag so they can return the item once they have had buyer's remorse. Coach needs to tighten down on returns and JAX needs to inspect more items before sending them back out.

I love shopping at Nordstrom because they have great customer service and easy returns. However, they have done a better job at setting up systems to keep FP customers from getting used merchandise. I watched a return in front of me, customer returning a pair of "unworn" shoes. The sales associate didn't argue with the customer, but I watched her inspect the shoes, and then put them on the counter behind her. Post transaction she put a special tag on them. I am guessing they were headed to Nordstrom Rack. Sometimes you will see shoes marked as refurbished at Nordstrom Rack (they mark it which I think is great).

 

[QueenLouis]

If there is going to be a change in the return policy, I guess it's time to finally return my Fleur de Lis duffle. (And no, I never cut the tags or used it. Just tried it on in the mirror a couple of times just like I would have done in the store.)

 

[LizRx]

Really interesting article!
So it seems they were already losing money with their current policies and when that happens in any company, they tend to move fast. They can't just keep doing what they're doing now and hope that things will be ok.

I'm actually somewhat excited to see what they come up with!

I'm thinking they aren't so much trying to become another LV as trying to go back more to what they used to be in the beginning, which I'm actually glad to see. I love Coach, but I confess I haven't purchased a new one in a long time. I lost interest in them when they went all signature/logo crazy and though I think think the Legacy line is gorgeous, I still only buy the vintage Coach because the vintage quality is so superior to what they're doing now. Though I've been really tempted by some of those yummy colors!

People keep saying that they won't pay more than $400 for "just a Coach bag." And that shows that the brand has lost a certain amount of respect. They cant ignore that in this business. Even before, Coach was never on level with LV status wise, but the brand did have more respect than it does now. And unfortunately, $500-$1000 is not considered that much to pay for a nice bag anymore.

Now the question is, can they pull it off?

Ooooh... It's like a bag soap opera...

Totally agree with this. My first "real" handbag was a Coach black leather zip shoulder bag that I received for my college graduation in 1999. I don't know the actual name of it, but it was definitely a classic, and at that time I thought WOW this is such an awesome, luxurious gift because the leather was divine and the brand was still considered "exclusive". But the siggy's started showing up not too long after that and my perception of the brand started to decline. I'll admit that I bought 2 siggy's in the early 2000's when they were still fresh, but as more and more siggy's started to descend upon us and everyone and their momma's were carrying them, I got rid of those 2 siggy's and moved onto more premium brands.

Fast forward to today: In the past 2 months, I have purchased 5 Coach bags - my first in over a decade. What drew me back in is that they returning to their roots and offering more leather and in some beautiful designs at that. Leather is what they were built on afterall. I don't mind that Coach has $1200 bags as long as the quality is on par with the price point - it just tells me that they are stepping up their game and trying to garner more respect which seems to be working on me - though I am just one consumer. Besides, a comparable leather style in LV or Gucci will run $3000+.

Their biggest challenge in transforming their image is really undoing the effects of being mass market and totally accessible. Michaels Kors has Michael by Michael Kors, Marc Jacobs has MBMJ, Chloe has it's See line. They should brand their MFF like these other designers have done for their entry-level lines so it sounds less cheap and don't criss cross names and call everything Madison and Lindsey. Distinguish the luxury/boutique lines somehow so people who will perceive it as such.

Also, even luxury brands like Gucci, Burberry, Dior, Ferragamo have outlets so it's fine if they still send FP to the outlets (please don't take away the "back wall"!).

Just my two cents. If all of these rumors are true, it will take awhile for it to happen. Will be fun to watch the transformation!

 

[pixiechic]

The only part of this new possible plan that bothers me is the move away from PCEs. I've had a major financial reset since my days of buying LV and Balenciaga, and the discount makes more reasonably-priced leather bags a much easier possibility for me.

I am pretty close to both FP boutique and outlet store, so if one place doesn't have what I want, it's not hard to go to the other. I can't remember the last time I bought anything at the factory store though. The FP deletes are few and far between, and the MFF stuff just doesn't blow my skirt up. Maybe that will change if they shift some of the smaller stuff from the boutiques.

I am actually delighted about the move to more leather and less signature. I'm a Coach fan from back in the day, and they sorta broke my heart when they ditched the classic, simple leather styles I knew and loved.

 

[pp1jb]

Thats really interesting news. My outlet normally just has bags but seems to have more sunglasses, jackets and I even picked up a water bottle over the weekend. I've NEVER seen a water bottle sold. I like the sig and would miss that for sure Good luck finding lots of buyers for at $1,500.00 bag...I'm out for sure if that happens.

 

[mossgirl84]

Coach needs to pay attention to what happened with JC Penney. They have been fumbling around, not understanding their market and trying to be something they are not. Look where it has landed them.

The cache of "Premier brands " is exclusivity. There is too much Coach already out there, so they have kind of sunk their chances of being exclusive. Can anyone name another brand that has successfully made the upgrade from "Affordable luxury " to "Premier"? I cant think of one, but I am curious to read up on anyone that has done it.

That being said, there are many beautiful things in the world. If Coach wants to believe they are above taking my middle class money, I am sure Dooney, Kate Spade, or someone else will!

Amen! I was thinking the same thing, look at what JCP did to themselves, it was self-inflicted. They didn't pilot any of the changes, they just put them in motion and rolled it out nationwide-dumb.

Forgive me if this is a stupid question, but what DID Penneys do, anyway? I saw an ad the other day from them about how they were changing things back to the way they used to be, but I didn't realize they had changed. Probably because I haven't shopped there in forever. I did notice last fall when I went to stock up on sweaters that they didn't have anything I liked but I didn't think that was a big roll-out change, I thought that was just my own bad luck.

Hopefully I'm not posting this at an awkward point in the thread - I haven't read ahead yet!

EDIT - Well, crap. I should have read ahead! I saw someone point out that new pricing that JCP had rolled out with no more coupons and just lowered prices. *That* I knew about! I remember seeing someone somewhere say that they got rid of their St. John's Bay brand, which is probably why I couldn't find any sweaters last fall. That's definitely a big mistake, taking away a line that you are known so well for carrying! I thought maybe they had changed something more significant than those things, but I guess those changes were enough if they're scrambling to fix it now.

 

[toby11]

I love Coach leather bags, and one of the main reasons I stick with Coach is the bags are reasonable enough in price that I can buy multiple bags, and not so expensive I'm afraid to wear them. I personally rarely if ever will buy any bag for more than $400, and I'm certainly not buying an MFF bag for that.

 

[pixiechic]

I love Coach leather bags, and one of the main reasons I stick with Coach is the bags are reasonable enough in price that I can buy multiple bags, and not so expensive I'm afraid to wear them.

Exactly. I'm considering a happy yellow Coach bag for spring, and I'd never consider, say, a yellow Balenciaga. I'd be too afraid to get a light-colored $1,700+ bag dirty, but a $300 bag? Not such a big deal.