I apologize greatly for being MIA for an extreme amount of time. Today, I found out some news that has prompted me to get back on here. Mainly because I hope to start some discussion. I hope to get some insight and opinions about the latest company buy-out.
Today, I woke up to the news that Kate Spade New York was bought by Coach for a whooping $2.4 Billion, with the notions to attract the Millennial target market and take the brand international. I knew Kate Spade was for sale, with Michael Kors being the other company of interest. In my opinion, both companies aren’t that great but the better of the two was chosen. I feel content knowing Coach is going to be the company over seeing Kate Spade, rather than Michael Kors.
Here is my argument…
Part of Coach’s vision for its own band and Kate Spade, is to bring it back to the level of exclusivity. How does one do that? The article I read from Forbes this morning stated that they are planning to cut down on the amount of items that go on sale and cut down on the amount of internet flash sales.
I completely agree with the plan. I carry Coach and Kate Spade in the handbag department at the company I work at. Currently, there are a ton of Coach and Kate Spade on sale. I have been with the company, 2 years this June. I have seen a drastic decline in customers buying items from these brands at full price. They are always seeking after the sale items. What type of profit are companies making by putting items sale? There is nothing special about it. It brings it down to a level where a Kate Spade or item is obtainable for everyone.
Today, I had a customer come in, asked me for Kate Spade, she only wanted sale. She said it was for her Daughter’s birthday and asked if there was an additional discount. While I was working with her, the plan Coach has makes perfect sense. It didn’t seem like the mother was putting great thought into her Daughter’s birthday gift. She just wanted a deal. It made me sad that a good deal outweighed putting some love and thought into a gift.
In addition, Michael Kors has been running sales lately. This year alone, our store has done two 25% off sales for full price Michael Kors items. Even with the 25% off, the items are very slow moving. I have seen a decrease in quality and a decrease in the company’s market. There are customers who come in and they want nothing to do with the brand. To each their own! As for Coach, the only time they ran a sale on full price items was on Black Friday. They ran a 30% off full merchandise promotion at the start of the holiday shopping season.
Lastly, I thought today, “How can Coach, who is so stream lined and professional, obtain such a fun and flirtatious brand?” Remember the Coach Poppy Line? Coach had it for a while, back in 2009 with that line. They produced clothing, jewelry, bags, and keychains in bright, flirty colors. It was elegantly done and very attractive. It was bright, vivid and happy. If Poppy were still around today, I would be on the Coach website a lot more to see what they have in production.
This is where I see Kate Spade filling the void for Coach. It is a shame it is not going to be exclusive for Coach, directly but they need to be a little flirty again.
Thoughts? Agree, Disagree, Neutral? Please comment, share, and like!