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

[missmoimoi]

The winged bags (crosby) are celine knockoffs.

The bags in the Spring line up that have studs are Valentino knockoffs.

The Rhyders, especially the wallets, are balenciaga knockoffs.

The Gramercy is a fendi knockoff.

I think that about covers it.

+1

Michael Kors, Kate Spade, and Rebecca Minkoff among others are making copies of premier designer hits too. If I keep going, Vince Camuto...there's a Fossil boxy leather satchel that looks a LOT like the Longchamp leather 2.0 satchel. Now that I'm thinking about this...the list goes on and on.

 

[momtok]

Interesting article. Coach is mentioned as well as MK, and Tory Burch. But Kate Spade is Wall Street's darling now

Kate Spade Winning the Handbag Wars (Coach stock down 40%)
http://money.cnn.com/2014/11/06/inv...s-coach-handbag/index.html?source=yahoo_quote

From the article:

"Holiday in the bag? The key for all of these brands will be to have a strong holiday season that doesn't require extensive discounting."

Now *that* will be interesting to watch for Coach. The last few months have been rife with Coach's cries of, "No more sales! No more sales!" (I'm ignoring the outlets here, as well as department store sales. Let's just pretend they're not there for the moment.)

They even went so far as to "cancel" the idea of a pre-holiday PCE (I'm going by reports from the PCE thread, wherein some SAs were initially claiming a PCE near Christmas, but then changed that to claim Coach canceled the idea.) They also have a semi-annual sale coming up, that was originally scheduled for January, but then there were rumblings that it might switch to just before Christmas instead.

My point is, ignoring the outlets and department stores, I wonder if "boutique" Coach will be able to hold out, and not do the "extensive discounting" of which this article warns. I get the feeling that they want to, but they're not exactly known for their longterm willpower.
.

 

[ltbag]

+1

Michael Kors, Kate Spade, and Rebecca Minkoff among others are making copies of premier designer hits too. If I keep going, Vince Camuto...there's a Fossil boxy leather satchel that looks a LOT like the Longchamp leather 2.0 satchel. Now that I'm thinking about this...the list goes on and on.

Yes but Coach did not used to do this. They used to make leather bags that had a simple yet distinct style. Of course they had tacky siggy bags too, but they never were like Michael Kors where most of the styles were copies of other brands.

 

[poesey]

Interesting article. Coach is mentioned as well as MK, and Tory Burch. But Kate Spade is Wall Street's darling now

Kate Spade Winning the Handbag Wars (Coach stock down 40%)
http://money.cnn.com/2014/11/06/inv...s-coach-handbag/index.html?source=yahoo_quote

Interesting read. Thanks melissatrv!

A few days ago PB posted a preview of Kate Spade's Spring collection (http://www.purseblog.com/fw/check-photos-kate-spades-spring-2015-bags-accessories/). Based on what I saw, I think KS is much more relatable to a younger/hipper customer (vs Coach or MK). I can see why things are looking good for KS! (Disclaimer: I don't own any KS bags, so I'm not really biased )

 

[ildera5]

Interesting article. Coach is mentioned as well as MK, and Tory Burch. But Kate Spade is Wall Street's darling now

Kate Spade Winning the Handbag Wars (Coach stock down 40%)
http://money.cnn.com/2014/11/06/inv...s-coach-handbag/index.html?source=yahoo_quote

I was thinking of posting this too !
I am now loving KS since Coach has done nothing for me for the last few months . I find it interesting that they have found the balance between sales and FP which seems to work well. I have found myself buying a few items FP and not even thinking twice as I would with Coach. I think it doesn't help that Coach has jacked up the prices even more here in Canada. JMHO

 

[missmoimoi]

Yes but Coach did not used to do this. They used to make leather bags that had a simple yet distinct style. Of course they had tacky siggy bags too, but they never were like Michael Kors where most of the styles were copies of other brands.

Yup, I agree. And that's why it was so noticeable as soon as Coach truly jumped on the bandwagon too! Coach had their own distinct look before.

 

[missmoimoi]

I was thinking of posting this too !
I am now loving KS since Coach has done nothing for me for the last few months . I find it interesting that they have found the balance between sales and FP which seems to work well. I have found myself buying a few items FP and not even thinking twice as I would with Coach. I think it doesn't help that Coach has jacked up the prices even more here in Canada. JMHO

I'm in Canada and I think some of the new prices here are utterly silly now. It just does not compute for me (plus I see a decline in quality materials).

 

[jules08]

I still buy what I really, really like, I find that I cannot move away from Coach completely. I am still holding a grudge about the way they handled the Peanuts line AND the discontinuance of the Poppy line which I really adored. I see a lot of ppl carrying MK and read that they are kicking Coach's butt, but none of the bags appeal to me. The lines that I love beside Coach are LV (tho getting more and more expensive, and rumour has they are outsourcing where they are being made , Balenciaga - I did purchase a Rhyder only because it was the bronze metallic and I've been wanting one badly and yes knock off of Bal, and I like Marc by Marc Jacobs, but def a decrease in quality in that line too. Seems every house is following this trend of high price and lower quality unfortunately. I also just purchased the OOh bag, which is something I never would usually buy, esp high price for a mini bag, but gotta tell ya, its adorable and I love it. Also purchased the Dakotahh in Saddle. For those of you who love the mini with the fringe, is it really worth the price of over 7 and changw, just wondering if you love it. But my point is there is always something Coach makes me like even tho I am pissed at them at times, lol.

 

[flik]

From the article:

"Holiday in the bag? The key for all of these brands will be to have a strong holiday season that doesn't require extensive discounting."

Now *that* will be interesting to watch for Coach. The last few months have been rife with Coach's cries of, "No more sales! No more sales!" (I'm ignoring the outlets here, as well as department store sales. Let's just pretend they're not there for the moment.)

They even went so far as to "cancel" the idea of a pre-holiday PCE (I'm going by reports from the PCE thread, wherein some SAs were initially claiming a PCE near Christmas, but then changed that to claim Coach canceled the idea.) They also have a semi-annual sale coming up, that was originally scheduled for January, but then there were rumblings that it might switch to just before Christmas instead.

My point is, ignoring the outlets and department stores, I wonder if "boutique" Coach will be able to hold out, and not do the "extensive discounting" of which this article warns. I get the feeling that they want to, but they're not exactly known for their longterm willpower.
.

At my local mall coach fp store, the SA told me their numbers are way down. Since there is both a Macys & Bloomingdales in the mall with constant sales & discounts, no one is shopping at the FP store. Well, as the old saying goes "you can't have your cake and eat it too". Coach will either have to stop outside vendor sales or match discounts.

 

[CCfor C]

I still buy what I really, really like, I find that I cannot move away from Coach completely. I am still holding a grudge about the way they handled the Peanuts line AND the discontinuance of the Poppy line which I really adored. I see a lot of ppl carrying MK and read that they are kicking Coach's butt, but none of the bags appeal to me. The lines that I love beside Coach are LV (tho getting more and more expensive, and rumour has they are outsourcing where they are being made , Balenciaga - I did purchase a Rhyder only because it was the bronze metallic and I've been wanting one badly and yes knock off of Bal, and I like Marc by Marc Jacobs, but def a decrease in quality in that line too. Seems every house is following this trend of high price and lower quality unfortunately. I also just purchased the OOh bag, which is something I never would usually buy, esp high price for a mini bag, but gotta tell ya, its adorable and I love it. Also purchased the Dakotahh in Saddle. For those of you who love the mini with the fringe, is it really worth the price of over 7 and changw, just wondering if you love it. But my point is there is always something Coach makes me like even tho I am pissed at them at times, lol.

Yes...true, and although Kate Spade is cute (she's been around a long time...I've always liked her aesthetics), her bags are still cheaply made, IMO. I prefer Coach's leathers and quality...to me the Coach brand overall is better and lasts a lot longer...I'm still rooting for them even given all of the changes.

I really do love the Givenchy nightingale...but almost 2000 for that bag. Unless it is the only one I own, I just can't justify the price for that...esp. when the leather is really not much better than some of the Coach bags...

 

[MIKOMEGMOM]

Has anyone been able to buy a Coach online lately with a code? They are not working for me. Strange.

I also heard its a VIP event this month based off customers previous purchases. Someone else mentioned this here as well.

I personally think different bags appeal to different people. If I don't like what's offered I sit it out or shop another brand.

Has anyone read the Coach quarterly report? I think it was contradictory to this article. Odd.

 

[whateve]

Has anyone been able to buy a Coach online lately with a code? They are not working for me. Strange.

I also heard its a VIP event this month based off customers previous purchases. Someone else mentioned this here as well.

I personally think different bags appeal to different people. If I don't like what's offered I sit it out or shop another brand.

Has anyone read the Coach quarterly report? I think it was contradictory to this article. Odd.

I didn't know there were any recent discount codes for Coach.

 

[sjh630]

My SA also told me there is some kind of "VIP" event on Black Friday. What exactly it is is not known yet. Oh brother Coach...Seriously?

 

[ltbag]

Has anyone been able to buy a Coach online lately with a code? They are not working for me. Strange.

I also heard its a VIP event this month based off customers previous purchases. Someone else mentioned this here as well.

I personally think different bags appeal to different people. If I don't like what's offered I sit it out or shop another brand.

Has anyone read the Coach quarterly report? I think it was contradictory to this article. Odd.

I never get invited to the vip events anymore and I am a very loyal Coach customer. Discounts and invites seem to be given to those who don't buy much or those who buy at the outlet and return 90% of what they buy. I am not in either of those categories. It will be interesting to see if I get an invite. I never get discount codes either anymore.

 

[ponytail]

I never get invited to the vip events anymore and I am a very loyal Coach customer. Discounts and invites seem to be given to those who don't buy much or those who buy at the outlet and return 90% of what they buy. I am not in either of those categories. It will be interesting to see if I get an invite. I never get discount codes either anymore.

So have there been discount codes given out lately? I thought those had been all done away with