Coach tries to upgrade their clientele

COVERGERL · February 16th, 2007, 04:20 PM

Coach bags: You're just not worthy - Blogging Stocks

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Coach bags: You're just not worthy

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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.

Upgrade or dissing their customers?

sputnik · February 16th, 2007, 06:37 PM

are they making all their bags more upscale or just adding a pricier line to their collection? cause if they're just adding a second line i don't see how they're betraying their customers.

ediebrooks · February 16th, 2007, 07:11 PM

It doesn't bother me if they want to upgrade. I can't even afford their cheaper stuff.

COVERGERL · February 17th, 2007, 12:50 PM

It's going to be another brand of Coach, a more exclusive one, with it's own shops and logo.

flecjill · February 17th, 2007, 01:25 PM

I think most of their logo stuff is ugly and not worth $400+.

Novice · February 17th, 2007, 05:20 PM

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Originally Posted by flecjill

I think most of their logo stuff is ugly and not worth $400+.

Is it really that much? I've only ever been in a Coach Outlet store & couldn't justify those prices.....

Laurent · February 17th, 2007, 05:22 PM

That purse in the pic up there is the first Coach bag I've ever seen I actually like.

choozen1ne · February 17th, 2007, 05:32 PM

I think the desire for them to upgrade thier clientale is the huge amount of fake purse that are out there . As a person who has many Coach bags seeing the fakes bags annoys me . When people try to say the bags are real while they know they are fake jsut deminshing the image of the company , If you have a fake bag that is fine , just admit it is fake when someone ask you , if you like your bag then why lie about it . Thousands of women get ripped off by those stupid ass purses parties where the hostess tells them "oh the bag is real , I got if off the streets in New York " or people on Ebay that sell bag knowing it is fake but charge the people like it is real

zorbeet · February 17th, 2007, 05:53 PM

It's funny because that Coach bag looks alot like a Mulberry bag. If their idea of upscaling their image is to rip off other brands. Bring it on and fail!

darksithbunny · February 17th, 2007, 06:04 PM

People just need to stop being materialistic. It's for your own good. What will you do if they ever pass the consumer consumtion tax? Think about it.

SweetPea · February 17th, 2007, 07:14 PM

I really don't want a bag that's going to outlive me. I like so many different styles and these are not affordable. When I'm done with a bag, I'm done.

hotncmom · February 18th, 2007, 12:11 PM

I buy most of my purses at Target. Purse styles change so frequently I just don't see any need to spend more than $50 on one.

o0Amber0o · February 18th, 2007, 12:55 PM

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Originally Posted by hotncmom

I buy most of my purses at Target. Purse styles change so frequently I just don't see any need to spend more than $50 on one.

I just bought the cutest bag and wallet from there. I'm so picky about my hand bags that whenever I find one I like I scoop it up instantly!

COVERGERL · February 18th, 2007, 03:55 PM

Coach is actually suing Target for selling fake Coach bags.

choozen1ne · February 18th, 2007, 03:57 PM

Really , I had not heard that , I do know they are very protcetvie of their copyrighted desings , Just like Loui Vittion , Burberry ,Kate Spade and Christin Dior