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

[stephan142]

Unfortunately I think the rhyders will hit the outlets and will go on clearance at the department stores. There are too many stores selling them and there are too many colors and styles in my opinion.

I hope the Dakotahs become a classic style for Coach and that they don't delete them like they cancelled the Phoebe. The Dakotah is so versatile and it is uniquely Coach. No one has anything like it. It pay homage to the styles of Coach's past (like the stewardess bag) but also looks really relevant now. I love it.

Some of the other stuff I cannot tell if it is the last of the Reed Krakoff designs or it is Vevers (the taxi totes and some of the more basic bags etc) Is everything out now Vevers? Not sure....

In any case, I think certain styles should not be available at department stores or outlets. This would insure that they would not get discounted as heavily.

Time will tell....

The small and medium rhyders - yes. The larger ones i don't think will hit the outlets. At least not the blue and red one. The large black is made of that HORRIBLE leather so I can see that one not selling as well as the others.

 

[stephan142]

Also agree with you about the Dakotas. Great bags. Especially the fringe one.

 

[abwd]

Unfortunately I think the rhyders will hit the outlets and will go on clearance at the department stores. There are too many stores selling them and there are too many colors and styles in my opinion.

I hope the Dakotahs become a classic style for Coach and that they don't delete them like they cancelled the Phoebe. The Dakotah is so versatile and it is uniquely Coach. No one has anything like it. It pays homage to the styles of Coach's past (like the stewardess bag) but also looks really relevant now. I love it.

Some of the other stuff I cannot tell if it is the last of the Reed Krakoff designs or it is Vevers (the taxi totes and some of the more basic bags etc) Is everything out now Vevers? Not sure....

In any case, I think certain styles should not be available at department stores or outlets. This would insure that they would not get discounted as heavily.

Time will tell....

Yeah, there are certainly no shortage of Rhyders. Now if the feather fobs hit the outlets, Coach management would need 24 hour security detail!!!!!

 

[ltbag]

The small and medium rhyders - yes. The larger ones i don't think will hit the outlets. At least not the blue and red one. The large black is made of that HORRIBLE leather so I can see that one not selling as well as the others.

Yes I agree, the blue and red large rhyders are in a different class from the rest of the rhyders and will probably not end up at the outlet.

 

[ltbag]

Yeah, there are certainly no shortage of Rhyders. Now if the feather fobs hit the outlets, Coach management would need 24 hour security detail!!!!!

I think Coach will make more of these fobs, but in typical Coach cluelessness, by the time they hit the stores, the novelty will have worn off and they will be stuck with a bunch of them and then we will see them at the outlets....

Seriously once the styles of bags that these fobs were made for go out of the fp rotation, the frenzy for the fobs will die down I imagine.

 

[missmoimoi]

The small and medium rhyders - yes. The larger ones i don't think will hit the outlets. At least not the blue and red one. The large black is made of that HORRIBLE leather so I can see that one not selling as well as the others.

You can bet on it. The dept store and the boutiques are full of stock with "reg" Rhyder bags but the quality does not scream 'luxe' so why the new price point? They are going to gather dust and go on clearance - we don't have outlets here (not so much).

The "special" ones which include colorblock Workwear 33 are made with better pebbled leather although (IMO) not as nice as the Tatum, Dakotah that whole whiplash collection...the leather on these bags is superior. The red nubuck 33 has sold out but was never in stock in Canada to begin with.

I'm curious about the upcoming Gramercy bags. I definitely want one or two but if they're not popular, these will make it to sale.

 

[whateve]

I think Coach will make more of these fobs, but in typical Coach cluelessness, by the time they hit the stores, the novelty will have worn off and they will be stuck with a bunch of them and then we will see them at the outlets....

Seriously once the styles of bags that these fobs were made for go out of the fp rotation, the frenzy for the fobs will die down I imagine.

Definitely! I remember jumping on the tassel fobs and the hangtag fobs that came out with Legacy but they all went to the outlet and I don't see them selling well on ebay.

 

[missmoimoi]

I think Coach will make more of these fobs, but in typical Coach cluelessness, by the time they hit the stores, the novelty will have worn off and they will be stuck with a bunch of them and then we will see them at the outlets....

Seriously once the styles of bags that these fobs were made for go out of the fp rotation, the frenzy for the fobs will die down I imagine.

Re: feather fob post-frenzy...really? Well, I hope so. I hope a bunch of them get shipped up north if there's a surplus

 

[abwd]

Not sure where to post this, but this thread seemed as appropriate as any regarding Coach's new direction.

We were in our FP store this evening. I was looking around (which usually gets me in trouble, but I was good tonight lol).

As we left, my eight year old turns to me and says, I think Coach is cooler than it was before. I was kind of surprised and asked her what she meant. She replied that new bags looked like they were good for younger people to use. "Ta know mom, it's cooler'l LOL. Now I never actually discuss Coach so I was kind of taken aback.

So based on my very perceptive 8-year old's keen observation, you should all think about buying stock!!😀

 

[Luv2Shop1]

Interesting early term results:

http://blogs.wsj.com/moneybeat/2014/09/30/bagging-sales-at-coach/?mod=yahoo_hs

Bagging Sales at Coach
ByMiriam Gottfried

Being a luxury brand means maintaining a luxury image. But what if it takes a sale to get customers in the door?

Such is the dilemma Coach faces. The maker of handbags and accessories has pledged to lower the frequency of promotions. While that may eventually help it resuscitate its struggling brand, it will likely come with some near-term pain.

Coach is weaning its full-price stores off a busy schedule of “private-client events” in favor of two semi-annual sales, according to Sterne Agee. The first lasted from mid-June to mid-July; there were no other promotions for the remainder of the quarter. But the company already appears to be paying a price for its discipline: Average daily visitors to Coach.com fell 40% for desktop and mobile in August after falling only 14% in July, Sterne Agee notes.

At the online factory store where it is gradually trimming the number of flash sales to one-to-two a month, versus about three per week historically, unique visitors fell 50% in August and total minutes spent on the site dropped by 80%.

For Coach, as for its customers, a return to luxury may come at a cost.

 

[tannedsilk]

Interesting early term results:

http://blogs.wsj.com/moneybeat/2014/09/30/bagging-sales-at-coach/?mod=yahoo_hs

Bagging Sales at Coach
ByMiriam Gottfried

Being a luxury brand means maintaining a luxury image. But what if it takes a sale to get customers in the door?

Such is the dilemma Coach faces. The maker of handbags and accessories has pledged to lower the frequency of promotions. While that may eventually help it resuscitate its struggling brand, it will likely come with some near-term pain.

Coach is weaning its full-price stores off a busy schedule of “private-client events” in favor of two semi-annual sales, according to Sterne Agee. The first lasted from mid-June to mid-July; there were no other promotions for the remainder of the quarter. But the company already appears to be paying a price for its discipline: Average daily visitors to Coach.com fell 40% for desktop and mobile in August after falling only 14% in July, Sterne Agee notes.

At the online factory store where it is gradually trimming the number of flash sales to one-to-two a month, versus about three per week historically, unique visitors fell 50% in August and total minutes spent on the site dropped by 80%.

For Coach, as for its customers, a return to luxury may come at a cost.

It was bound to happen. Now for the REAL test, can they stay the course or will they buckle under the pressure? Only time will tell.....

 

[Luv2Shop1]

It was bound to happen. Now for the REAL test, can they stay the course or will they buckle under the pressure? Only time will tell.....

Exactly! I think they have some leeway, but it will be interesting to see how forgiving investors are if things get too dicey. Look what happened at Mulberry.

 

[whateve]

Interesting early term results:

http://blogs.wsj.com/moneybeat/2014/.../?mod=yahoo_hs

Bagging Sales at Coach
ByMiriam Gottfried

Being a luxury brand means maintaining a luxury image. But what if it takes a sale to get customers in the door?

Such is the dilemma Coach faces. The maker of handbags and accessories has pledged to lower the frequency of promotions. While that may eventually help it resuscitate its struggling brand, it will likely come with some near-term pain.

Coach is weaning its full-price stores off a busy schedule of “private-client events” in favor of two semi-annual sales, according to Sterne Agee. The first lasted from mid-June to mid-July; there were no other promotions for the remainder of the quarter. But the company already appears to be paying a price for its discipline: Average daily visitors to Coach.com fell 40% for desktop and mobile in August after falling only 14% in July, Sterne Agee notes.

At the online factory store where it is gradually trimming the number of flash sales to one-to-two a month, versus about three per week historically, unique visitors fell 50% in August and total minutes spent on the site dropped by 80%.

For Coach, as for its customers, a return to luxury may come at a cost.

How can they expect to have more unique visitors if the are making it harder to get invited?

I know that I am spending a lot less time on both Coach.com and FOS. I only go to Coach.com when there is a new floor set or I have a PCE to spend. The next floor set isn't for almost a month so there is no need for me to look. By contrast, I've spent more time looking at websites that have sales on Coach.

None of these analyses ever talk about the income Coach makes from wholesaling. I wonder how much it helps the bottom line.

 

[ltbag]

Interesting early term results:

http://blogs.wsj.com/moneybeat/2014/09/30/bagging-sales-at-coach/?mod=yahoo_hs

Bagging Sales at Coach
ByMiriam Gottfried

Being a luxury brand means maintaining a luxury image. But what if it takes a sale to get customers in the door?

Such is the dilemma Coach faces. The maker of handbags and accessories has pledged to lower the frequency of promotions. While that may eventually help it resuscitate its struggling brand, it will likely come with some near-term pain.

Coach is weaning its full-price stores off a busy schedule of “private-client events” in favor of two semi-annual sales, according to Sterne Agee. The first lasted from mid-June to mid-July; there were no other promotions for the remainder of the quarter. But the company already appears to be paying a price for its discipline: Average daily visitors to Coach.com fell 40% for desktop and mobile in August after falling only 14% in July, Sterne Agee notes.

At the online factory store where it is gradually trimming the number of flash sales to one-to-two a month, versus about three per week historically, unique visitors fell 50% in August and total minutes spent on the site dropped by 80%.

For Coach, as for its customers, a return to luxury may come at a cost.

Wow. Those numbers are a staggering drop in web traffic. I don't think Coach will keep this up for long especially if the Department stores discount the bags every week like they currently are doing.

 

[ltbag]

How can they expect to have more unique visitors if the are making it harder to get invited?

I know that I am spending a lot less time on both Coach.com and FOS. I only go to Coach.com when there is a new floor set or I have a PCE to spend. The next floor set isn't for almost a month so there is no need for me to look. By contrast, I've spent more time looking at websites that have sales on Coach.

None of these analyses ever talk about the income Coach makes from wholesaling. I wonder how much it helps the bottom line.

One thing is for sure. The constant sales that Department stores are having on this new merchandise is definitely not helping Coach establish its new image. Where I live there was the Bloomingdales event (25% off if you bought enough), the Macys sale (25% off), the Bon Ton sale (30% off). That was just in September, the month of the release of this supposedly new plan to upscale lol. When these bags start getting a bit dated and tired it will be even worse.