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

[proffashionista]

I very much agree w the jc penny debacle analogy. In fact goes right along w my idea posted earlier about how this new model illuminates how Coach is redefining or seeking its purpose. Penny's did that, quite drastically and it failed. Now that jcp fired its CEO, I remain curious about the path and direction it will take. As I now am curious about COH as this speculated model might play out!

 

[shminbabe]

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.



This is how I feel. Exactly.

 

[bagee]

I'm excited to see how this will all play out. No outlet in my state now and I'm sure won't be in the future either, but that's ok! Right now I think their business plan is not a plan.....it's just a hodge podge of whatever..just sell it somewhere and that's just plain crazy. I will continue to buy a Coach bag in the future if I like it, just like I do now. I do think (and hope) that Coach is going for a more upscale, classy looking bag...look at the fall preview....seems to be an array of very nice looking bags! And not to offend anyone because I know there are a lot of LV lovers out there...but I wouldn't buy one if someone gave me the $ I don't get their appeal..but that's probably just me?!

 

[Arizabif]

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.

They got rid of coupons and sales, (and insulted their customers by comparing people who used coupons to drug addicts!), and wanted to make JCP more like a bunch of little boutiques inside the store, eliminating the cash wrap stations, and having sales associates float around with mobile devices to charge you out. I don't know if they ever got the last part off the ground, though; I usually don't shop there *unless I have a coupon*, so I stopped going.

Basically, they couldn't figure out what they wanted to be, and drove off the demographic that had been shopping there for the last 100 years, and never brought in anyone from a new demographic, and now the company is on very shaky footing and may not recover.

 

[mossgirl84]

They got rid of coupons and sales, (and insulted their customers by comparing people who used coupons to drug addicts!), and wanted to make JCP more like a bunch of little boutiques inside the store, eliminating the cash wrap stations, and having sales associates float around with mobile devices to charge you out. I don't know if they ever got the last part off the ground, though; I usually don't shop there *unless I have a coupon*, so I stopped going.

Basically, they couldn't figure out what they wanted to be, and drove off the demographic that had been shopping there for the last 100 years, and never brought in anyone from a new demographic, and now the company is on very shaky footing and may not recover.

OK, I didn't know about the little boutiques or the floating checkouts - that's insane! I don't understand why companies try to fix things that aren't broken. I get trying to stay fresh and relevant but you don't want to drive away your core base, either. Blah....

I actually like Penneys. I hope they fix their issues, I'd hate to see them go away permanently.

 

[melissatrv]

Companies roll out new strategies with the start of their fiscal year. I looked it up and like my company Coach's fiscal year starts on July 1st 2013 and will be FY14. And if they are anything like my company the strategy changes each fiscal year. They could decide to do this and then completely kill it come July 2014 or FY15.

So in case this is a go and their "new normal" better buy up using those PCEs before July 1st!!!

 

[melissatrv]

Executives need something to do...no seriously. My company, and if I told you who I worked for, you would all be shaking your head in agreement. They have to have new plan each fiscal year. So they take things that are working just fine and try to make them better. Their plans often fail and then they go back to the drawing board. You can protest this to the higher ups and say "this is a bad idea, let's try this instead" but if the top brass have it in their plan they are going with it. If they just kept things same old same old, they would be out of a job; no reason to have them around. So they have to essentially justify their job position by messing with things.

Ironically when it does not work, they often go back to the old idea and not only make it sound new but make it sound like it was their idea.

My company took away a popular thing with consumers...literally this probably impacts 95% of the people here. All the lower folks on the totem poll and all the market research said it was a bad idea but some big wig wanted to go with it and no one wanted to lose their job by arguing too much against it. Our profits have plummeted, the industry analysts have slammed us and I can pretty much guarantee they will be bringing back the thing they took away.

The jury remains out on Coach

OK, I didn't know about the little boutiques or the floating checkouts - that's insane! I don't understand why companies try to fix things that aren't broken. I get trying to stay fresh and relevant but you don't want to drive away your core base, either. Blah....

I actually like Penneys. I hope they fix their issues, I'd hate to see them go away permanently.

 

[cupcakegirl]

Generally speaking, the shopping in my town SUCKS!! We have a boutique but no outlet. The closest one is a little over an hour away. I don't see my boutique being able to support that price point. As it is, they don't get the higher priced bags in the first place. I would imagine this is the case in a lot of places all over the US. Our Macy's has already started giving MK a larger piece of the handbag department - so a total phaseout wouldn't surprise me at all. Will I pay FP for Coach in the future - maybe. I doubt I'd be buying bags costing more than $600 at FP. Tori Burch, Michael Kors and Rebecca Minkoff - all have handbags and clothing and for the most part the bags are about the same price point as Coach currently is. I really can't see Coach elevating themselves to the level of LV, Balenciaga or Prada - to name some of the higher level of bags. It's like Chevrolet all of a sudden putting a Mercedes or BMW price tag on their cars. I know it's not out of the realm of possibility, but just doesn't make a lot of sense. I may just start weaning myself off my handbag addiction.

This.

 

[shoptillidrop]

They sold me the Phoebe with my PCE and never said a word to the contrary...

I just placed an order on the phone for a chestnut Phoebe. I was told I couldn't use either my PCE or my Facebook coupon. I said that I was aware the PCE excluded Phoebe but that no where does it say on my FB coupon it's excluded. She honored it.

 

[autumn.lily]

I spoke with my local boutique and was told I can order the chestnut Phoebe with the Facebook coupon no problem. It wasn't even my usual SA!

 

[melissatrv]

OT: What is with all the avatars with a just a letter in them. Most seem to be new members. Is this the default avatar new members are given when they don't choose anything? I am finding it so distracting because I think it is the same person then realize it is not

 

[shoptillidrop]

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!

Perfectly said!

 

[shoptillidrop]

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.

I've used Coach since the late 80's and can't even recall a sale on Coach. It seems they were always full price and no where was there a bag with 'C's on it. Coach sure has changed over the years.

 

[mrs.blue]

As long as I like the bags, I will keep buying. Or else I will find something else to spend my money on My main problem is that I don't feel the Coach quality is worth the full retail price. So if the prices were to remain the same with no discounts I probably won't be buying. If I actually paid sticker price for my bags, my expectations would be much higher. I still love Coach and the fall line is looking good!

 

[mrs.blue]

Also-to the poster with the question about the letter-yes this look like the default avatar. I guess I will have to set one up. I don't like it.