Coach bags: You're just not worthy - Blogging Stocks
Coach bags: You're just not worthyUpgrade or dissing their customers?
Well known as being on the affordable end of designer handbags, Coach has become almost iconic when it comes to women's accessories. Coach, Inc. (NYSE:COH), the leading marketer of modern classic American accessories, is making a bad move by going upscale with its bags, jewelry, sunglasses and more. Just earlier this month, it announced an increase of 36% in earnings, but with what I consider to be a wrong turn in marketing that might leave a bad taste in the mouth of loyal consumers, who knows what will happen next.
Coach is rolling out a more exclusive line, called "Coach Legacy" aimed at higher-end consumers. The Coach Legacy line includes an alligator bag (retailing at $10,000), and leather bags that range from $495-795. It also will open concept boutiques in LA and NYC that according to the press release will "feature cream and mahogany awnings with a new horse and carriage logo, unique to the concept store... will be about 1,200 square feet, on one floor with two entrances, and will feature original restored copper façade," in addition other high end "layering of stylized visual and decorative elements will also reinforce the lifestyling of the brand." Except that hasn't been the lifestyling of the brand until now.
From what I gather, this line is focusing on Coach's sophisticated, style innovating and luxury-seeking trendsetters. However, what I think Coach is missing is that for fashion driven women who work hard for their "luxuries", Coach has always been a dependable staple and brand. One that is both attainable and classic.
The recent trend that I have been observing in fashion is designers and stores coming together to make avant garde couture more accessible to the hoi polloi, as exemplified by all the buzz about Target Corp.'s (NYSE:TGT) new Proenza Schouler line. So why would Coach do the exact opposite? Is there something amiss with having working people wearing their bags?
It bodes badly for a company to leave its loyal multitudes of consumers out in the cold, or worse yet, with no arm candy.