I have one Coach tote that I use for football games so I don't worry if beer is spilled on it or someone steps on it! Otherwise, I see it at the mall and just can't find anything I like. HOWEVER, I LOVE their purse charms
So for image, I think they are appealing to a younger crowd that can afford $100-200 on a bag (teenagers, young 20s). And are probably appealing more to the middle-class.
I think the case in point.....I live in an area of about 500,000 people. The average income in this entire area is about 30,000 (wide variation...one suburb the average income is more than double that). Very diverse ethnicities, etc. The mall that it is located in houses your typical mall stores like Forever21, Gap, etc. The most 'high end' store in the mall is Banana Republic. This mall is no SCP or anything. So if Coach was 'luxury' they wouldn't be in this mall!