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

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#301
whateve said:
I've experienced this in Neiman Marcus, but I thought it was because they thought I was going to steal something. I've never had this problem at Coach. It doesn't take them long to realize I know more than they do about their products.

Speaking of copying, this MK looks like someone was spying on Coach.
http://www.michaelkors.com/rhea-studded-suede-shoulder-bag/_/R-US_30H4SRGL5S?No=6&color=0602

This one is reminiscent of studded Edie:
http://www.michaelkors.com/rhea-stu...oulder-bag/_/R-US_30F4GRAL5L?No=12&color=0230
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It's a bit of a stretch to say it's a copy of the Edie just because it has studs. Style not the same at. All.
 
#302
marival said:
I had the opposite happen with me at the full price store. The display was perfect. The bag they brought from the back, no so much - all wrinkled, bad leather, etc. They brought it out bagged in the dust bag and shopping bag and apparently thought I would just take it and walk out with it. Fortunately, I asked to look at it first. They said it was the last one. I took the display. It was on the top shelf of the display case, so may be it hadn't been handled much.
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LOL this has been my experience too! I religiously check my "bags from the back" no matter where I shop. But I have noticed that the displays have had time to "fill out" and don't seem to have the dings etc.


It started a few years ago that Coach stores only got 3 bags of each style per store. I remember when this was not the case. But I have at times looked at all 3 bags and found none suitable and had to order. Hate doing that because when I am in the store and buy I enjoy walking out with a bag and having that instant gratification :)
 
#303
ophousewife said:
I still don't get how Coach is trying to become more "exclusive." My SA told me that was their goal with the new line. I asked her how Coach is going to achieve exclusivity when anyone can go to the outlet, get a cheap siggy bag and flaunt their new Coach all around the mall. Sure enough, the shoppers who came in to look at the new stuff were carrying their mff siggy bags and gawking at the prices in the store. It made me sad to see every customer walk out empty handed and (dare I say) pissed off.
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This is a very interesting point. It almost makes me wonder, with all the talk about the "higher-end consumer", perhaps Coach is trying to reinvent the outlet to carry things that appeal to the former boutique clientele that got used to shopping with a discount, i.e. the ordinary bargain shopper like me. The outlet now carries MFF bags that we already love, like Phoebes and others from the Madison line. Maybe they're trying to phase us out towards the outlet and trying to lure new, "high end" shoppers to the boutique who are willing to pay full price for their new lines.
 
#306
baglady39 said:
That's interesting! I visited two of the higher end Nordstrom stores a few weeks ago and noticed they both had also lost their Coach sections. I only found two duffles in the whole dept and at one of stores only, and those bags were lost among other brands. I see some Coach online and also from their catalog, but I wonder how many stores dropped the brand? We are getting a Nordstrom Rack next spring, which I am excited about, but def not for Coach! The one I go to now is a bit of a drive, but I've noticed the same thing about the Coach products as you have. It's also true at our TJ Maxx, Marshalls, and DSW stores around here. I know that we all like different things, and that's fine, but honestly, I don't like the quality of that kind of stock either, and I think this turns me off even more with Coach in general. Not that other brands aren't doing this as well (MK, RM, etc), but I don't find the quality as much of a turn off with others, I guess. I also don't see the volume in those stores with the other brands as I do with Coach.
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I am not sure the stores dropped the brand. I think Coach is letting their contracts expire so they can put sales associates in dept stores so they can ultimately control their merchandise. My Dillards Handbag Manager told me when the contract expires Coach will revamp the dept and add their own sales associate. Meaning they can control the sales of the product. I am sure they are not going to carry the merchandies in as many department stores. Again thats oversaturating the market which is why they ran into problems in the first place. And my Macy's no longer has Coach but there is a Coach store in the mall and My dillards is a flagship Coach so I guess Macy's lost out.
 
#307
abdoutots said:
This is a very interesting point. It almost makes me wonder, with all the talk about the "higher-end consumer", perhaps Coach is trying to reinvent the outlet to carry things that appeal to the former boutique clientele that got used to shopping with a discount, i.e. the ordinary bargain shopper like me. The outlet now carries MFF bags that we already love, like Phoebes and others from the Madison line. Maybe they're trying to phase us out towards the outlet and trying to lure new, "high end" shoppers to the boutique who are willing to pay full price for their new lines.
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Great point. I never thought about it like that. Makes the most sense.
 
#308
MIKOMEGMOM said:
I am not sure the stores dropped the brand. I think Coach is letting their contracts expire so they can put sales associates in dept stores so they can ultimately control their merchandise. My Dillards Handbag Manager told me when the contract expires Coach will revamp the dept and add their own sales associate. Meaning they can control the sales of the product. I am sure they are not going to carry the merchandies in as many department stores. Again thats oversaturating the market which is why they ran into problems in the first place. And my Macy's no longer has Coach but there is a Coach store in the mall and My dillards is a flagship Coach so I guess Macy's lost out.
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This post was from a response, but before that I originally posted because they told me at my fav Nordies that they quit carrying Coach in their store because it didn't sell well...that nobody wanted the specific styles they were sent. I asked if they didn't have some selection, because I know they have a buyer for that dept, and she said no, and that was the problem. I was carrying a Vevers bag, and she said, WOW, if Coach would send that, I could sell it, etc. So they gave up on them. She also said other stores had too, but my point from the quoted post was I wondered how many stores actually have it now? I still see stuff online and in catalogs. I know Nordstrom does drop ship some things like a few of the RM bags because I found out the hard way (I typically have a frustrating time with RM directly, and I try to order from anyone else first).... so some things are just listed online and may or may not ship directly from them. You can't always tell online which products- I asked the chat rep once. Anyway, you may very well be right and after the contracts, all dept stores will do the same, including Nordstrom. A manager told me the Coach rebranding project would not be completed till spring 2015, so maybe they know they will have their own people in the dept stores by then? I think they have to or the dept stores will kill the rest of the Coach boutiques. Even then, I still think they don't really know their core customer, so the outlet and discount liquidator situation will most likely continue. Most people will spend a lot of money on a luxury brand, not Coach.
 
#310
baglady39 said:
This post was from a response, but before that I originally posted because they told me at my fav Nordies that they quit carrying Coach in their store because it didn't sell well...that nobody wanted the specific styles they were sent. I asked if they didn't have some selection, because I know they have a buyer for that dept, and she said no, and that was the problem. I was carrying a Vevers bag, and she said, WOW, if Coach would send that, I could sell it, etc. So they gave up on them. She also said other stores had too, but my point from the quoted post was I wondered how many stores actually have it now? I still see stuff online and in catalogs. I know Nordstrom does drop ship some things like a few of the RM bags because I found out the hard way (I typically have a frustrating time with RM directly, and I try to order from anyone else first).... so some things are just listed online and may or may not ship directly from them. You can't always tell online which products- I asked the chat rep once. Anyway, you may very well be right and after the contracts, all dept stores will do the same, including Nordstrom. A manager told me the Coach rebranding project would not be completed till spring 2015, so maybe they know they will have their own people in the dept stores by then? I think they have to or the dept stores will kill the rest of the Coach boutiques. Even then, I still think they don't really know their core customer, so the outlet and discount liquidator situation will most likely continue. Most people will spend a lot of money on a luxury brand, not Coach.
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Great post as usual. :smile1: But my manager told me that rebranding won't be done until 2016:shocked:
 
#311
I actually like where they are going now. I thought the push for Classic shapes a(e.g. Borough) and quirky collaboration (e.g. Snoopy) are great moves. Better than MK. On top of that, the moves to penetrate Southeast Asia and closing down unproductive stores in US seemed right. But of course, it does take time for the effect to take place, so I don't think bottom line impact can be seen soonest....
 
#312
abdoutots said:
This is a very interesting point. It almost makes me wonder, with all the talk about the "higher-end consumer", perhaps Coach is trying to reinvent the outlet to carry things that appeal to the former boutique clientele that got used to shopping with a discount, i.e. the ordinary bargain shopper like me. The outlet now carries MFF bags that we already love, like Phoebes and others from the Madison line. Maybe they're trying to phase us out towards the outlet and trying to lure new, "high end" shoppers to the boutique who are willing to pay full price for their new lines.
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I got an email from Coach Outlet and the emails are weird now, they are not just promoting Factory Online Sale but "go to the store". Anyway the bag in the email the Peyton Chain Patent Carryall looked very "high end" for the outlet, at least from the photo
 
#314
abdoutots said:
This is a very interesting point. It almost makes me wonder, with all the talk about the "higher-end consumer", perhaps Coach is trying to reinvent the outlet to carry things that appeal to the former boutique clientele that got used to shopping with a discount, i.e. the ordinary bargain shopper like me. The outlet now carries MFF bags that we already love, like Phoebes and others from the Madison line. Maybe they're trying to phase us out towards the outlet and trying to lure new, "high end" shoppers to the boutique who are willing to pay full price for their new lines.
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When I first started at coach, 2008? There was a bag there that my manager brought at the outlets, it was a bag that was at full price store and sent to the outlet..imagine my surprise when she let me buy it

And imagine my surprise when a version of it (colour dots on white leather, gallery tote, I miss that size, bag) came out in outlets

They were mimicking if not, outright doing the same bag but maybe less material, at the outlets.

I personally prefer to shop online because by now I'm very good at telling whether something is good in person or not, and if not, I can always return. Plus I gave my info to a hermes sa and between stalking h.com and waiting for him to call, well, I got it online before I got the call lets just say

Plus most of the time I get better deal, like jcrew, 40% off sale, plus additional cash back from e bates, and my credit card..free shipping..can't be beat :D

I'm sorry to hear so many SAs, coach or otherwise, making pple feel like they can't shop in peace..I guess that's why a lot of brands are starting to sell online, if only someone can convince phoebe of celine to do the same :cool:
 
#315
stephan142 said:
I guess that I'm one of the few people that love where coach is going. I used to love the siggys when I was younger but I grew tired of them with age. I also got tired of coach when it seemed that everyone from age 10 and up was carrying them. I was even considering saving for a pre owned luxury bag until I bought the Madison Carrie satchel. I love the fall collection and I really love the spring 2015 collection from what I have seen. I plan on getting at least 4 pieces this fall and I can't wait for the spring next year. I hope that coach can survive. If not, then I guess that I will have to move on up with the big boys, ie Louis and balenciaga. I probably won't move on to Michael kors because to me, his stuff is becoming real common. Everyone has at least one. Including me.
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I think Michael Kors has become a lot like Coach. Where I live (a suburb of Manhattan), everyone has a Coach and now everyone has a MK. I think over saturating the market and making the items so affordable dilutes the brand--and then it is not considered a "luxury" any more.
 
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