Coach has had its ups and downs over the years, and if you haven't shopped at Coach since
its heyday, you may be surprised at just how much has changed.
Here's everything you need to know before buying your next Coach bag.
You may have once thought that Coach was destined for bankruptcy.
"I declare bankruptcy!"
But the company has since bounced back.
In fact, the label exceeded analysts' expectations in 2018, and if you haven't shopped at Coach
since its heyday, you may be surprised at how it's changed.
Former Coach CEO, Lew Frankfort, was the one who recognized the label's potential in the
mostly untapped accessible luxury market.
Frankfort told Fortune,
"Where [European luxury brands] would be pricey, we would be affordable.
[...] Where they would be snooty, we would be friendly."
At the time, rival brands laughed off Coach's foray into the cheaper market and even dubbed
the handbag company, quote, "McDonald's luxury."
Years later, though, it would be Coach having the last laugh.
After all, the company's sales boomed from approximately $6 million to over $5 billion
in just a few decades.
In 2017, Fortune reported,
"Coach only emerged a year ago from a major two-year slump [...] hurt by too big a focus
on promotions, confusion in customers' mind about what was sold at its nicer full-service
stores compared to its outlets, and a reputation for always being on sale."
Ironically, raising their prices and redefining themselves as upscale aura helped the label
get back on its feet.
By the end of 2016, Coach's more expensive handbags, at $400 and above, had made up half
of their sales.
By 2017, the company's best-selling bag was the Rogue, a pricier $795.
Andre Cohen, president of North America and global marketing at Coach, told Fortune,
"That's a bag that a year ago, we wouldn't have had permission to sell."
If you haven't bought a bag from the label in some years, your eyes might pop at the
price, but you'll apparently be getting better quality for your money.
Part of Coach's expansion in the 2010s involved opening a lot of factory outlet stores.
Coach doesn't reveal how much of their sales stem from discount stores, but analysts estimated
that, by 2013, 60 percent of the brand's earnings were being generated by their outlet locations.
While the brand has focused more on creating luxury items in recent years, Coach outlets
were still expected to make up the majority of the brand's profits as of 2017.
To the customer, outlets may seem like the best place to get a deal, especially since
Coach started narrowing in on higher-end, more expensive bags.
But buyer's should beware.
After analyzing an array of brands, including Coach, CBC's Marketplace reported that some
outlet items were made with inferior materials of varying quality.
Mark Ellwood, a shopping expert and author of Bargain Fever: How to Shop in a Discounted
World, explained,
"When you walk into an outlet store, you have to think, this stuff was made to be cheaper."
Coach acknowledged manufacturing products specifically for their outlet stores, and
told CBC's Marketplace in a statement,
"Generally, our manufactured-for-outlet product will be less embellished [...] using less
overall hardware and/or simpler hardware, may not have an exterior pocket, or may have
a narrower gusset, may have a simpler (non-branded) lining, or may use a flat versus tumbled leather
[...] compared to the retail bag that inspired it."
In a 2019 interview with Vogue, Victor Luis, the former CEO of Tapestry, which is Coach's
parent company, revealed,
"There's no doubt consumers want more tailor-made experiences, and part of that is customization
and exclusive product.
[...] We have, definitely more than any other brand in our space, craftsmen across the network
that allow customers to have a level of customization that others have a hard time achieving."
Just think of Coach Create as a grownup and luxe version of Build-a-Bear, which allows
its customers to choose their preferred style, select a color, add embellishments ranging
from pins to rivets, and emblazon products with a motif and monogram.
"They're lightweight, flexible, comfortable, fashionable."
Buying a fake Coach bag may enable you to save some hard-earned cash, but counterfeits
are a huge problem in the United States.
Inc. reported,
"Counterfeit buyers, tempted by $25 Coach purses and $10 Dolce & Gabbana sunglasses
may only see a bargain, but both the U.S. and global economies take a hit as a result."
Citing statistics from the U.S. Chamber of Commerce, Inc. revealed that the nation is
thought to lose between $200 and $250 billion in sales each year due to counterfeiting.
Coach, in particular, is serious about doing away with counterfeits.
In a Liam Neeson-style statement, the associate general counsel for Coach told The Baltimore
Sun,
"To those who traffic in counterfeit goods the message is simple: Coach is looking for
you and, once found, will seek the maximum penalties available, including substantial
monetary payments."
So, it's probably just best to stay away from counterfeit goods.
Coach even provides customers with tips to keep them safe from fake products.
Per the label's official website,
"Please note that if a deal or price sounds too good to be true, it probably is."
And you should be especially cautious of websites that claim to be official or misspell the
word "Coach" in their URL.
You may still associate Coach with mass-market fast fashion, but the company has already
taken steps toward becoming more sustainable.
Former Tapestry CEO, Victor Luis, told Vogue,
"When it comes to sustainability, inclusivity, and environmental issues, it comes down to,
'Is it part of your DNA?'
We do believe in being a better member of the global community by being aware of how
much electricity we're using, what role water plays across organization; those are all areas
that we have specific targets to and we print an annual report on."
As the company works to become more sustainable, Coach has also been taking inclusivity seriously.
As Luis told Vogue,
"On the theme of inclusivity, ensuring in this era when issues of gender, race, and
sexual orientation come up in the news so often [...] is it a part of who you are and
what you believe?
I think definitely, it may be trendy for some organizations, but for us it's something we
live and believe.
I think it’s a part of what being a member of this community in New York City [is about]."
Just like every fashion brand, Coach is preparing for the future, and it looks like fans of
the brand have a lot to look forward to.
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