Why Goldman Sachs Believes Coach's (COH) Turnaround Is Alienating Consumers

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Their expectations are definitely out of whack. I remember when my step son graduated from college he thought he was going to come out making $100K. He went to a state school and had a liberal arts degree. Needless to say he has settled into the real world and all it's limitations. Thankfully, he is on his own though--so I can afford all the designer stuff I want. :p
I know exactly what you mean. My older daughter and her husband both graduated near the top of their classes in law school and the only jobs they could get are fellowships with the state government. That means that in 2 years they could be having to look for jobs again.

Lucky you! My younger daughter is taking forever to get through college! She's in her 5th year and I think she might need another. I don't even want to think about how long we'll have to support her before she finds a job. Once she is on her own, we'll have more to spend on us!
 
Their expectations are definitely out of whack. I remember when my step son graduated from college he thought he was going to come out making $100K. He went to a state school and had a liberal arts degree. Needless to say he has settled into the real world and all it's limitations. Thankfully, he is on his own though--so I can afford all the designer stuff I want. :p


Lucky you!!! I am trying to really teach my ten year old about really earning what you have and it is a difficult concept to enforce when friends have it all. I had three jobs during summers in high school and had to buy all of my own school clothes. Just saying that makes me sound like "we had to walk to school five miles with no shoes!!" LOL.

It is a different culture and economy and I find it difficult to teach my children that there is this whole concept of "paying your dues." It is eye-opening for sure.

I guess everyone adapts to their own circumstances as this generation will certainly do. It is interesting to observe the differences though. I was thrilled to get my $18k a year job out of college!! Oy!!!! Pretty sure my ten year old wouldn't get out of bed for that!! LOL.
 
I always worked for laid-back companies that had casual dress codes, but I am talking about the specific company I work for now. This is a change in THEIR policy and I think its to accomodate the younger workers :smile1:

In any case, back to topic---I do think that expensive handbags as a status symbol is not something the millennials are as into as previous generations. :smile1:


I agree I have a teen daughter and she could care less. I even brought her into the Coach store and told her she could buy a bag and she was not interested. As a teen I always carried a bag, but the younger set tends to carry very small cross bodies or back packs
 
I wore a dress to work on the first day at my company. And 14 years later, I never wore another dress or skirt to work. Boy did I stand out like a newbie. Everyone was wearing shorts and flip flops in January.

Sounds like Miami, everyone wears flip flops here, there is such a relaxed dress code here which was hard for me coming from NY and my wardrobe of black
 
What's interesting to me is that almost all the clothing has sold out on Net-a-Porter. There really isn't much left in a great deal of sizes from Fall 2014 (go to each individual item and select the size menu, you'll see what I mean)!
 
Sizes that aren't listed are sold out and it went from x-small to x-large. There was also clothing on the site that is totally sold out and no longer up that went from 0 to 12. I would say that is pretty diverse for a standard fashion brand.
 
Honestly, I'd like to see a designer / brand recognize that not all women fit those tiny sizes! I would've happily forked over my credit card for a number of the skirts and sweaters in the fall line, if ONLY they had fit. I believe the average american women is larger than a 12 these days. I certainly am and I'd really like to be able to wear stylish clothes rather than be limited to what is designed for my size. While there are decent designs out there for plus size, the majority of what I find is either "work wear" (too formal for where I work for sure) or just plain frumpy...
 
Honestly, I'd like to see a designer / brand recognize that not all women fit those tiny sizes! I would've happily forked over my credit card for a number of the skirts and sweaters in the fall line, if ONLY they had fit. I believe the average american women is larger than a 12 these days. I certainly am and I'd really like to be able to wear stylish clothes rather than be limited to what is designed for my size. While there are decent designs out there for plus size, the majority of what I find is either "work wear" (too formal for where I work for sure) or just plain frumpy...
A lot of people have said this. I don't know why Coach doesn't make things in plus sizes, but I think it would make sense that they would limit their sizes for now to see how well they sell before adding more sizes. I'm wondering if they didn't make very much inventory at all in order to test the market.

It does seem to me that when I look at coats in the outlet (which are the only clothes they have there), the extra large and the extra small are the last ones to sell.
 
A lot of people have said this. I don't know why Coach doesn't make things in plus sizes, but I think it would make sense that they would limit their sizes for now to see how well they sell before adding more sizes. I'm wondering if they didn't make very much inventory at all in order to test the market.

It does seem to me that when I look at coats in the outlet (which are the only clothes they have there), the extra large and the extra small are the last ones to sell.


This is exactly what I think! They have ALWAYS sold some things at full price, but I'm very skeptical they've sold a LOT of volume at full price so far. Of course they want you to THINK that, though, lol! :p You can see some of their accessories "selling out" just like the clothing, but you're talking very small quantities to begin with.

Every store I've been in so far they keep telling me over and over how well this line is selling and that I need to "get it before it sells out", and I get that people are buying things and that some things are indeed selling out, but I'm not going to jump unless it's something I truly, truly want. I'm guilty of a couple of bags in less than two weeks myself, so I have bought some retail, but I'm not going crazy like in the past. The funny thing too is almost every time I go to a retail store they talk about returns from the SV line. I've seen some bags on that basis alone, and it seems to me to be SOS, different day. To me it's like it's always been with one exception- far fewer shoppers in both the retail and outlet stores! You could hear the crickets chirping in the men's outlet this past weekend, and there weren't too many people in the women's side either. I do hope I'm wrong because I like what I see so far from the SV collection and appreciate that they needed to do SOMETHING. Regarding the current tactic, though, I think they are trying to be like Apple and create hype based on demand. They're not Apple. Yes, I was up at midnight PT to preorder my 6+, and I fall for it every single time! :p

To me, the clothing is way too expensive, though. I loved the leather biker jacket and wanted to buy that, but $1600? No thanks! :laugh: I like my MK leather jackets just as well, if not more, and they are far less expensive at retail... and very marked down as deletes at the outlet. I got most of mine from the outlet. That's just me, though- everyone is different! I would love to have the some of the SV shoes, but I've never thought Coach shoes were comfortable, and if I buy them, I don't wear them. So I avoided the two I liked at $400 and $600. Too much for Coach given my bad experience with them. I'll spend that on Frye, Ugg, etc. Marked down...possibly!

It will be interesting to see what happens long term. I can't tell y'all how many people have said "eww, too southwest" , or "ewww, what kind of people are they marketing all of that for" with regard to SV's line??? Most people I know and have asked what they think say this when they see the stuff online. I've always been the odd one here, as I'm very open-minded and will wear it if I love it, but most people are very conservative and carry the signature bags or stripped down leather bags in the $400 and under range. That being said, to me this whole thing is analogous to the flagship items of a few years ago- most of that went in mass at some point to the outlets because it couldn't sell in full price stores. Now you've got all that plus the other regular line items sitting at full price, and most of the people I know will not even spend $400 on a Coach bag. It will be interesting to see if consumers step up to the plate long term, but I'm betting tons around for SAS unless they have cut production way, way back for everything! I'm also betting the first bag I did buy in fp (with the dept store discount) makes it to dept store sales at least, if not clearance. The second one I bought was low quantity and not released yet, and not in dept stores, at least yet. So some probably will and some won't. It's ok- bought because I loved and no other reason, but I'm sure I overpaid.
 
It's ok- bought because I loved and no other reason, but I'm sure I overpaid.

I always feel I overpay with Coach and that is the problem. I should feel that my bags hold their value and that I am not the only one paying full price.

But....I loved the Dakotahs so much that I went ahead and bought the teal one at full price. I got the other ones at 25% off.

I am willing to buy what I love and that is it. I actually am buying less than I used to, but I bought it all at once so at least Coach is getting a decent chunk of money out of me up front. :p

Seriously though, most of the fall line will be in the SAS and will end up at the outlets and clearanced at the dept. stores. This is not going to help Coach change perceptions any as the average consumer will not know the difference between the Vevers line and any other line that gets dumped at a discount by Coach. :cool:
 
Honestly, I'd like to see a designer / brand recognize that not all women fit those tiny sizes! I would've happily forked over my credit card for a number of the skirts and sweaters in the fall line, if ONLY they had fit. I believe the average american women is larger than a 12 these days. I certainly am and I'd really like to be able to wear stylish clothes rather than be limited to what is designed for my size. While there are decent designs out there for plus size, the majority of what I find is either "work wear" (too formal for where I work for sure) or just plain frumpy...

This!
 
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