Posted by Alex Jackson on August 05, 2016
So you may have noticed that our handbag and designer handbags categories have a notice about Coach Handbags and their resale. As such, please note that we require a Coach purchasing agreement signed prior to purchasing lots containing Coach handbags. So what is the story?? The story is Coach is cracking down on online sales and export sales. Coach handbags can now only be sold via traditional brick and mortar outlets. But what is the reason behind this decision? It’s all about the brand and preserving its value. Coach’s brand has been taking a beating some of the injuries were self-inflicted but many as a result of changes in consumer purchasing habits and the massive market of designer knockoffs. Coach can’t deny that they made some missteps pricing structures meant to widen their appeal, have only succeeded in watering down the brand and with increased competition in the same category from brands like Michael Kors and Kate Spade its only aggravating the situation further. Throw into the mix the booming market of designer knockoffs and you get a multitude of headwinds dragging down this well-established luxury brand. So what can and is Coach doing to turn this ship around? Well for starters bringing in new designers, adding edgier products to widen their appeal (what you didn’t get the $1500 leather Mickey Mouse Doll?) but also restricting access. Limiting access gives them a greater degree of control on their product line, how it is presented and more importantly what it is sold for. The handbag industry is in the midst of a sea change from changes in consumer demand as well. The new handbag every month is out and the quality handbag is in. Consumers are going longer between purchases and deciding to go with better quality rather than quantity. When the answer is no longer sell more bags the only alternative is sell less bags at a better profit.