I recently spoke to an investor who was interested in buying Coach stock. After extensive research, he found that Bag Snob was the only source denouncing the virtues of the Coach brand so he wanted to ask me why. The first thing I said was that I had nothing but admiration for their business operations and genius marketing efforts that garnered them an impressive 23% market share of the entire bag business. Trust me, if I could own the company, I would.
Their success is based on their ability to sell the concept of luxury at affordable price points. People who buy Coach really feel they are buying high-end luxury. Lovers are proud to advertise for Coach with the giant C insignia canvas bags. To be fair, their quality is pretty amazing for the price and their styles are practical. All this tells my investor to buy buy buy. The stock that is, because that is the only thing I’ll buy from Coach. I just don’t want a bag that literally everyone and their mothers (and grandmothers) carry. But that is why the stock is a good investment. In this economic climate, Coach is still going strong. Their outlet stores are doing business like you would not believe. It is a huge part of their business.
People want good, reliable bags with name recognition that is very reasonably priced. As an exercise, I went through their store and found a couple of bags that are not bad. The carryall from the Hampton collection in Summer straw and flower applique is cute, the center divider is also a frame pouch and there is slit pocket in back – all in all a very practical bag for only $358. The Parker in nickle metallic> is a total Prada knockoff but $398 for a leather bag is a really great buy. But then again, when the sales start, you can get a Miu Miu or Marc by Marc Jacobs for around the same price for a not so mediocre bag.