COACH to buy VERSACE* in an $8.5bn DEAL!
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- Опубликовано: 7 фев 2025
- Tapestry (Coach owner) to buy CAPRI HOLDINGS (Owner of brands including VERSACE AND JIMMY CHOO)
What do you think this will mean for our favourite brands owned by them?
Sources:
www.luxuo.com/...
www.theguardia...
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People get snobby about brands like Coach, but the quality of their bags is very high. I have stopped collecting the top tier bags from Gucci etc, the quality has significantly declined and the prices continue to skyrocket. Coach bags have excellent craftsmanship and are very well made
I agree, Coach is sometimes looked down upon. I personally love it. I think it’s rare to find a quality brand that doesn’t charge upwards of £1k these days! Hugs xx
I love Coach but I have a problem with seeing bags that I paid close to $500 for, being sold at the outlet a few months later. That is my issue with them.
@@annhans3535Very good point!
@@annhans3535 Not many of their retail bags make it to the outlet, though. Most of their outlet bags are made FOR the outlet.
Definitely!
Coach is one highly underrated luxury brand.👌🏽
During my banking career I worked in London, New York and Toronto, and was involved in a lot of M&A deals. Acquiring companies always put their own people at the top, because they believe they can improve on the management and performance of the acquired companies....that's why they bought them. The new leaders always want to put their own stamp on the businesses to make a name for themselves. They don't do that by leaving things status quo. Their goal is increased profit, which drives bigger bonuses and value of stock option grants. While sometimes they do enhance the brand and customer experience, hubris and tunnel vision often get in the way. These leaders are not generally known for their lack of ego. I'm in Toronto, where significant housing cost increases and general inflation is taking its toll on consumer spending. I was one of the people that spent too much during the pandemic, and have cut way way back.
Love this comment and how you explained from the business/ finance perspective ❤
ditto what tiktok said. Love how you explained it. Do you think it'll downgrade the luxury lines?
You are 1,000% correct in your commentary. I recently worked in luxury retail HR at a company that was acquired by a larger one, and what you described is very accurate.
But LVMH is smart about this and they allow the creativity of each label to continue to thrive. They will need to do this but also pivot to the current changing of consumer preferences. Versace is so 80s and glam it's far from quiet luxury. @@mwhite4976
Hi Sophie ! Versace is such a dolce vita Italian House. It is so sad this iconic brand can lose its" DNA " by being " global-ized" / merdged by a brand with completely different aesthetics.
I do know what you mean Joanna! I was actually surprised that they don’t own themselves (if that makes sense!) hugs xx
Versace had never been the same since Donatella took over. This can only revive the brand IMHO!!!
I just bought a Coach and appreciate the quality and price ❤🇺🇸
Outlet malls have coach, kate spade and Michael kors all next to each other or in the same general area. Intriguing to know they'll have the same parent company. Interesting times.
When the new broke last week, I read the story to my husband. I thought that was crazy. This means that Tapestry is doing great. I am in NYC and rent prices have not come down. Housing prices are leveling off because inventory is drying up because in NYC there is only so much land that you can build on. We were supposed to start building our new house in Florida but the price for materials have gone up so much, our house would cost 550k to build it now. So, we decided to heck with it and would travel for the next few years and enjoy ourselves while we have our health.
Yes. Enjoy live. Nice experience and good memories for later. My mother is ill now and cannot travel any longer. She told me that she is glad to went with me to several vacations. My father was only working and not in the mood for vacation later he was regretting it.
@@michaelaengels7825 That's what my kids are saying, enjoy life, travel and so stuff while we are still active (or can move🤣). Heaven knows what will happen in the future. My husband was always working but one little injury made him rethink things. So, he is now more willing to put the whole building of a house idea on hold to do other things. We can always settle later.
Hey Sophie, living in the US. Not sure about other people’s spending but mine has definitely slowed down. I only bought 4 new jumpers this year and I waited until they were all marked down on clearance. Now that inflation is through the roof and not slowing down, more of my money is going towards everyday essentials and building supplies for home renovations. Even basic building supplies are looking like a luxury nowadays.
I am in my 70’s and already own Prada, Coach, Longchamp, Mulberry. I will not spend the huge dollars because I think it’s a waste of money. My investments are doing fine, but cost of living in Minnesota is up. That’s not why I’m not buying the high dollar items though. I’m not buying Hermes or whatever because I feel no need to pay such a high price for my bags.
People keep forgetting about Richemont with holdings Van Cleef & Arpels, Cartier, Piaget, A. Lange & Söhne, Azzedine Alaïa, Chloé, Montblanc, Vacheron Constantin, and IWC Schaffhausen to name a few.
Hi, Sophie. I'm from the East Coast in the USA. I feel the economy is really suffering--everything is going up in price including food, medical expenses, and housing repairs. Regarding handbags, I have sold my "luxury" bags (Fendi, YSL, LV) as I no longer want to carry anything so expensive. The contemporary brands are a more affordable alternative; and the quality is just as good, if not better, than some of the luxury brands I've owned. Regarding the Tapestry merger, It will be interesting to see how their older lines fare in terms of design, quality and price. I just hope they do not follow the same business plan as LVMH and Kering, and we end up with seemingly poor quality and higher prices.
I agree with contemporary brands being as good or better quality. My coach bag which i wear everday for 4 years is still holding up nicely!
I can almost guarantee that prices will not decrease due to this acquisition. Companies don't just lower prices. They will have their normal sales but to lower prices across the board will not happen. Quality has been dropping for every brand. I like Coach and have carried their bags for a very long time but the bag i buy today is not the quality of the bag i bought 20 years ago. The bigger a company gets, the more bloated it gets, and they always sacrifice quality. If you want excellent quality, you have to buy from a small independent manufacturer that is trying to make a name for themselves.
I agree with this. I sold 7 LV bags and 2 Gucci bags plus a few others in the last 2 years. I was looking to restart my collection but I have already changed my mind on 2 LV bags for 2 coach bags instead. 5k plus taxes for 2 versus 1k plus taxes for 2. I think I will still add some LV and Hermes SLGs and accessories. I definitely will not be spending 5 k though unless it is on some stocks instead.
I’m curious, where did you sell your bags? To a resale company, or privately?
Me too. This year's Coach has better leather than LV, and I've dropped buying YSL for Coach.
Am from India, our economy is doing well, its on an uptrend, enormous interest in brands like coach, MK, kate spade, LV
Wyoming, previously San Francisco. Things are normal here. Eggs are $1.59, things are expanding and the recession isn’t hitting us. The law firm I work at is expanding. When I was in SF up until last year eggs were $8 a dozen when I could get them and rent was like buying a gently used car every month. I haven’t bought luxury in a minute but nothing has caught my eye. Last purchase I did was…. I bought a bunch of Hermes body care products and cologne for my husband in the spring
I’m very interested in the state of the luxury market. I found it intriguing to see the sales increase over the COVID period compared to before it. Although I have felt that there’s been a big slowdown… I just haven’t seen any data on it. Thanks for covering this subject- would like to hear more. Wish they would lower their prices, instead of decrease quality & play stupid games w/ consumers…
Yes you’re so right, I remember the big drives to spend on luxury during covid as reported in the news then! It certainly looks like that’s calmed down now. Fingers crossed prices don’t rise, and quality goes down 😢xx
Hopefully, there will be less expensive versace designs. I'm kind of happy about this 😍😍
It’ll be massively interesting to see where this goes!xx
I see that Versace often has good discounts. I also like that they have discounts on their own website (unlike Gucci or DG for example).
@@SvDu-bb7rh Yes ! Versace has good discounts but after last merge with Capri holding , discounts has been reduced from 50% off for bags and shoes to only 30% off ....I won't be surprised if this trend continues under Tapestry ( Coach ) merge 😢
@@SvDu-bb7rhI agree with you. Versace does have sales which is awesome. I just bought a beautiful silk shirt and scarf for 50% off. I never see other luxury brands doing that.
We’re in the US, in the south. The economy is not good, not really a recession, yet. I know in my circle of friends we have all started shopping more affordable brands. We have stepped away from brands like Chanel and LV because the quality isn’t there for the price, I think at this time in the world we want our money to actually get us quality, not just a flashy logo or trend. On Soc media more and more people have switched from luxury unboxings to fake unboxings and unapologetic about it. Also I’m seeing a lot of vintage and smaller brands on the rise on social media.
Hi Sophie, I appreciate takeovers happen all the time, but think it’s such a shame with brands like Versace which is a truly Iconic Italian brand. A very informative video thank you ❤.
Wow - this is huge! Thank you for sharing, Sophie!
I hope you enjoy watching Janet!xx
I do not have a question. I just really want to let you know I found this video very interesting! Love that you ask questions. Hope you continue these themes (and can answer your questions) :)
Canadian here, economy has hit the rhubarb, as we say. I was dreaming of a Lady Dior but have put that on the back burner. I am garnering new respect for Coach and starting to look at MK again. Kate Spade is too youthful for my taste . I also find myself considering brands by their content not their name, the quality of the leather and workmanship. Furla comes to mind.
Since Coach (or its parent company anyway) is the one doing the acquisition, really hoping no major changes happen at Coach as a result of this 🤞 I really enjoyed this video, including the different background/set up! ❤
I like the vintage Coach bags
Hi Sophie! I am from the U.S. and I would say with inflation everything is crazy and I do notice a shift in what people are willing to spend their money on. I haven’t commented on your channel a lot but I’ve been such a fan for years. This is such an excellent video and I am learning so much! Thank you for sharing 🤗💞
I’m front Toronto, Ontario, Canada. Our economy is pretty bad. Within Canada there are several provinces, and each is run by a different premier. Unfortunately the person who was elected long before Covid has done a number on the people living here. There used to be limits on things like how much some landlords could legally increase the cost of rent while a tenant lived on the property, and that was largely done away with as far back as 2018. It’s been a nightmare, covid made it worse, and this post pandemic inflation is going to ruin us. People are at the point of stealing to be able to eat, and refusing to move if a landlord tries to evict them because there is nowhere to go. Shelters were already struggling with funding before COVID but during so many were shut down. It’s abysmal.
Anyways on a happier note, I just realised that I have a dupe for the jacket you’re wearing! Yours is Balmain, if I remember correctly? I got mine from H&M last year sometime and as I’m doing laundry just noticed how siniliar it is from the buttons to the notch of the collar shape. A happy accident I guess. Speaks to how much I think your style influences me subconsciously when I’m shopping. Obviously it’s not the same quality but it made me happy to see. ❤
Hi Sophie,cheers from Italy. Here inflation , price increase of foods and fuel cut our spending power. So,of course, Chanel , Vuitton etc are more and more out of reach for most of us, we are struggling with everyday surviving problems😢
Im 52 a bartender in Florida. My rent has raised from 900 to 1200, electric usually was 100 is now 2 or 3 hundred!! Toilet paper is 8 bucks for a 4 pack!!! Gas in 4 a gallon, everything, every single thing costs more. Food is terrible. I havent shopped and don't see when i could. Car insurance, wifi all raised 60 to 100 more. Life is sucking!!!!
I live in Seattle, WA state, USA, and inflation for my life (which is pretty standard) is running 40% across the board. I'm a financial analyst so I see first hand what's going on, and my reaction is to save every dime I can now, and dream about big purchases I may want to make in the future when this entire thing collapses and it's all for sale at 70 cents on the dollar. However that's what I say, and not totally what I'm doing. However, I am curbing it a great deal, so that's something, lol.
I’m a big fan of Coach and high end luxury brands!! 😍😍
Coach is not a luxury bag brand. It never was. Coach has always been a fine leather goods company, and I don't want Coach to change. With this news, I'm glad I bought my 5 Coach bags when I did. They are nearly indestructible and do not easily show signs of wear and tear.
Coach is definitely a luxury brand!
It isn't a luxury brand, but don't confuse this with quality or being 2nd rated -- it goes toe to toe with luxury brands and beats many of them.
@@heidiheidi0
Yes, the vintage Coach bags are excellent quality!
I’m experiencing “ Shrink- flation”, same price but for a lesser amount. For example: they kept the cereal 🥣 price same but reduced the ounces. A denim handbag 👜 costs same as leather. So retailers are boasting “ see? I didn’t increase the price”, but they did reduce quantity and/or quality. Sneaky way of increasing prices. Gah 😖 . The price of services ( example: haircut 💇♀️) has gone up directly. Housing prices are insane in the Midwest, USA. Renting is the worst in all 50 states. Waiting for the axe 🪓 to fall! - Amy
Yes, yes, you are definitely right!
I come Greece where the situation is quite difficult for the majority. As for myself I did get buttoned up concerning luxury until further notice abut the economy.
About the new merger, frankly I'm hostile towards such mergers. I believe that high quality products should be produced by family owned businesses as they show infinitely greater care both about quality and customer service. I can tell from the painting supplies I acquire as well as high end stationary. Wish that fashion companies were run in a similar manner.
Totally 💯 👍🏻 agree about having less money 💰 to spend than previous years, personally talking, my Dear Sophie. But is it the case for all of us or just in average, leaving ahead a small minority of ultra rich 🤑 people who do not even feel the effects of this current inflation and are still riding hard on their luxury journey?
Hi Sophie ! This is so interesting. I do love this video, I agree with you: this will be an interesting fusion. I find quite interesting that Valentino has now an investor because they were one of the few independent company in the fashion industry.
Sophie that blazer still looks beautiful on you. I’m in California and the economy is poor, particularly food and housing (those who rent not own) which is something we all must have. Spending far more for far less. Back on subject, I love Coach, not really sure what this means for Versace , and I’m not really a MK person, the Hamilton bag was a hit many years ago and maybe the Skorpios. Now I can see MK and Versace having similar “beautiful sexy lady” vibes but I don’t read that in Coach.
Coach has big improvement on their style in recent years, Hope they will improve versace too
I love how you broke down the business aspect of these brands and holding companies. For me, these data points really help me understand the business, what I’m buying as a consumer and just the macro economic state and how that affects luxury. Thanks so much for sharing your knowledge!
I had read about this. When Tapestry bought Stuart Weitzman, I had been a big fan of SW shoes for years. Then, they closed almost all of the stores in my American city, and I heard from various people in retail here that the quality changed quite a bit with the new product lines. Hopefully that doesn't happen with these brands, although I'm not the biggest Versace/Michael Kors fan, personally.
Hello lovely! Yes I know what you mean, I’d be surprised if something didn’t change (be that the designs, price or quality). We’ll see!xx❤️
Yes. Stuart weitzman definitely changed quality. I actually think this will be a positive for MK. I am not sure for Versace though. I think you will be able to find these brands in some areas of the USA easier.
@@SophieShohetOfficial I commented before I finished the video... I will add my two cents on inflation 🙂 As I am currently looking for a new apartment to rent in the city of Chicago, rents have increased significantly. So, not good! Thanks for the interesting video Sophie! 😘
Agreed, Stuart Weitzman quality has decreased. I didn't realize it had to do with a merger however.
US - I have "curated" a nice collection of bags that is a mix of luxury (really just LV & Miu Miu) and contemporary (but really nice contemporary) with the luxury all being purchased pre-owned. I am pretty happy with my collection and not planning on adding any significant purchases. I think most US folks are wary of the economy, wages & retirement income have been stagnant while healthcare costs increase, as well as rents, mortgages, utilities, etc. Also, no matter where you are in the US, we are becoming more aware of our tenuous hold on "lifestyle" due to climate disasters, i.e. Maui fires, floods, storms, etc. I live in tornado alley, but we have had "once in a lifetime" hail storms, except that they happened twice in 3 months taking out my roof and two sides of my home (twice). Insurance pays for most of this, but then insurance premiums increase dramatically (or companies pull out).This does not affect the ultra rich, but for the rest of us, it results in more cautious spending on non-essentials.
Hi Sophie, in America, it took us about five years to turn the economy around from the stock market drop in 2008. But being from an art and European furniture and decorative arts, ,background , ultra rich people who can normally afford luxury goods are fine and the middle class is stepping back and watching to see what happens. I think the Tapestry group will raise prices of Coach, Kate, Spade, etc. I hope the upper luxury brands will be left alone to carry that brand DNA!
Very, very interesting Sophie, thank you for putting all that together for us. I am oblivious of business matters generally but the points you raised as to what this might mean for future prices has woken me up. (I am in the UK.)
Hello Kay! Yes I really hope prices don’t increase, we will see!!xx
I just followed the Tapestry market summary on NYSE. Thanks, Sophie!
It’s so interesting!!xx
Hi Sophie! I am a big retail coach shopper. I shop at a ton of brands but love coach retail (not outlet) and there has been some price increases. Not anything crazy but at least a $50-$100 increase on some popular styles like the tabby and the rogue
I was shopping in Selfridges today in Birmingham and I noticed Coach bags are really good quality compared to YSL which I think has deteriorated. Also better than Burberry, Louboutin and Jimmy Choo. Gucci prices are stable and I saw more Gucci bags amongst the shoppers than any other luxury brand. LV is still very popular and busy in store. BUT…..here’s my point we cannot keep expanding, getting richer, spending more in a world where raw materials are becoming rarer, where population is decreasing in the far east and people are concerned about their health, pollution, global warming and rising living costs. Population is growing here in uk but wealth isn’t. Manufacturing is not local and too many young people rely on getting a degree to seek work when that work is not available. We live in a rapidly changing world where nothing is stable. 50 years ago luxury brands were for the VERY FEW. Most people just had A bag, A coat and maybe 2/3 pairs of shoes. I’m appalled at the greed of most women for fast fashion and the attitude of more is better. We will rue the day we stopped appreciating master craftsmen and quality clothing. 💔💔
I have always liked Coach bags. You don't really hear about the quality issues with Coach, that you hear about with the bigger brands, like Channel or LV. I am from the US & the economy is terrible.
I love these kinds of videos Sophie….can’t wait to watch.
I’ve a suggestion for you: I’ve been curious, how come Kering are keeping Balenciaga & don’t appear to be rebranding it? Are they just waiting it out? Also, do you think the stigma around D&G has faded yet? On RUclips & TikTok land it seems like it’s still a no go but I feel like I see celebrities in it
I gave up on high price luxury a while ago. I have quite a few Coach bags. I would rather spend my money on travel than luxury bags. I'm in the Midwest in the US. The economy is getting better. I retired but still ok.
Thank you so much for taking the time out to comment this my friend! Im glad to hear the economy is improving, that’s brilliant news. Our inflation has improved a bit in recent days but it’s still really high 😢 Hugs xx
Just wondering - by what metric is the economy in your area getting better? In the Southeast US there are increases daily on just about everything in every sector. ??? Cheers!
Fascinating ❤😊!
I think it’s also about cutting cost. If they buy from suppliers their materials all together it costs each brand less. Also quality really went down and there is a huge gap between outlet production and boutique production. Especially for Versace I noticed myself a big downgrade due to the bad influence of Michael Kors who is more or less epitome of Outlet. It’s feels like 80 % of stock at Outlet are Outlet product almost nothing comes from the runway. And they reproduce in cheaper ways runway pieces. There was a silk shirt I had my eyes on from the runway show. Finally I found it in the outlet. Same design but not made out of silk and not made in Italy. But made in Romania out of 100% polyester… they are fooling clients who have no idea about the differences and think they made a good deal.
Time will tell whether greed as well as shareholder influence will change the course for all the price increases and quality of the products . It’s like the popular brand culture!
Very interesting news. Definitely something to follow to see what happens.
I’m curious to see if the designs will change at all! I hope you’re having a great week my friend 😊xx
Please do some more car videos...I just rewatched your car videos this weekend n want more
I certainly can, I’m so happy that you like those!!xx
I love her car videos & I'm not even into cars but they are so enjoyable
I'm in Australia and I'd say that anxiety about the increased cost of living (especially petrol and food) is causing lots of chatter and stress. Lots of people are very worried by it.
What i think is that it will be interesting to see this on a long-term...
LVMH, KERING, RICHEMONT and even ZEGNA (they have their little luxury group there) all have luxury brands as driving entities.
Louis Vuitton, Gucci, Cartier are luxury brands. Michael Kors, Coach or Kate Spade are contemporary brands with a different business model applied to a one expected for a brand like Versace.
And, LVMH has contemporary brands: Marc Jacobs, Kenzo, Patou. Those brands benefits from the aura of more luxurious brands but they don't represent the majority of sales in the group.
I'm not sure if TAPESTRY can compete luxury groups with the majority of their brands being contemporary brands.
Luxury brands can raise their prices and the clientele will follow. Can Kate Spade or Coach afford that?
I'm very curious to see what it will mean for Versace.
I concur. Odd move indeed.
Thanks for sharing 😊
I don't think it's that crazy for any fashion conglomerate to merge different price and quality levels to their rolodex. It's in the vehicle industry, like how Bentley and Lamborghini are part of The Volkswagen Group through its Audi subsidiary, and Mazerati is owned by Stellantis, that also includes Chrysler Fiat. Makes sense to me.
Great video, although I can't add to your commentary. Well done 😊
I'm in the United States as well, and the writers guild (WGA) and actors guild (SAG-AFTRA) have been on strike for months. The housing market in my area is still very hot as rents continue to rise. Just regular grocery shopping is significantly more expensive than it was a year ago.
The luxury market is shooting itself in the foot. Did they continuously raise prices during other recessions? I'm sure not at the rate we've seen lately. Extraordinarily expanding the gap between "haves and have-nots" at a time like this isn't serving anyone. I'm sure even some of the super rich want to see some reasonable value for money
I'm in the southern US, and I've just noticed a big increase in grocery prices.
Chiming in from Tokyo Japan- things are awful here. With inflation and decadessss of stagnant wages, people can’t afford to even turn on the aircon these horrible summer heatwaves from the massive jump of electricity costs because of the Ukraine/Russia war or buy much groceries because of covid import costs. The tourism thats now open after years of closed borders, is helping the economy a little bit however not near enough . Also the Japanese are NOT buying luxury- its all Chinese resellers/flippers and nouveau rich that visit (tax free shopping) Most residents go 2nd hand lux or are not buying anything at all…
I think 💬 more & more, luxury is becoming subjective and relative.
Hi Sophie! I heard they were also buying Kors
I remember just graduating high school and DREAMING of being able to afford a $300 Kate Spade bag. I ended up finally getting that as my first bag and now the rest is history. Kate Spade was my first bag and I still use their wallets, but also have LV and YSL. Hoping to add Dior to my collection this year. 🥰 I’m intrigued to see what this will mean for these brands! I love jimmy Choo and Stuart weitzman - they make women’s shoes for my size 43 feet and are great quality.
Dooney and Bourke they have nice Handbags too
I’m curious to see how the acquisition will affect the design language of Michael Kors and if it can keep the brand current like what happened for Kate Spade
Dear Sophie, I'm from Portugal and people are suffering, right now, I'm outside Portugal, working in the luxury market in retail, things are not slowing down I can tell you and customers from UK are buying outside because now you have tax-free!
This is so true about tax free, it makes a real difference!!xx❤️
I believe Michael Kors Owns Versace and Jimmy Choo . Interesting he's letting Versace go. And secondly yes coach is under rated (as another commenter said)
This can only be good news for Versace! It has not been the same since Donatella took over the brand, so there's not a downside for Versace IMHO.
Coach has remained steady design-wise...even though Kate Spade hasn't so much.
Let's hope that "rising tides lifts all boats"!!!
I have been slowly collecting vintage or classic styles from all these houses. I'm in the US. My go-to all-time favorite fragrance...since it was released in 1981...is the original Gianni Versace for women. IMHO, Donatella's sense of smell is broken and all scents she's released since she took over are horrendous!!!
IMHO, with the mergers or store closures, competition will be less. This could be very interesting as to what happens with quality, price, and brands. And yes, understand the management changes, as listed in a prior comment.
I'm glad those brands aren't ending under LVMH or Kering
Hi: I am from the USA and the cost of living right now is painfully high. The amount of disposable income I’d say is much less than it was let’s say in 2019. While I haven’t shopped at Tapestry brands before, I really do think that this merger will cause these good quality less exorbitant brands to increase their prices in order to be like the LVMH and Kering brands. Furthermore we will see more quality issues bc at this point the economy is making everyone desperate and I think the fashion industry is looking to cash grab over building a clientele base bc even they think the economy and the world in general is in an overall decline.
They better not cheapen the brand like they did to Kate Spade and coupons as you walk in the door at the factory outlet
LV and Hermes for example, seem to want the ultra-rich customers and--how-to-be-polite--almost have a disdain for those of us who are relatively well off but might only spend 5,000$ a year (I wonder what the sales breakdown is, I'm guessing that a sizable percent of their sales are from people like me). It's this attitude more than anything that has me turning away from LV and looking at other brands such as Aspinal (thank you Sophie! I just bought a few things from them), Longchamp (I bought a cute leather bucket bag for summer), and Polene. Would I love owning an Hermes bag? Yes! I fully appreciate the quality and workmanship. But I'm not going to spend twice the retail cost either buying from a reseller or spending the equivalent of a Birkin just to show that I'm loyal. Maybe a Delvaux is in my future...... Anyway, I live in the Washington DC area where we are somewhat insulated from bad economic conditions (e.g., we don't see huge layoffs) because everything is linked to the federal government. But, I think we are all feeling the effects of inflation. A fast food meal is over 10.00$.
I just hope this doesn't mean Coach bag prices will go up to offset the purchase.
The quality of a Coach leather bag supersedes all those more expensive ones by a landslide. I am so sad it was bought out because those are inferior. I hope they don't ruin the Coach quality (leather and hardware).
I wonder if this merger will cause brands like Coach, Michael Kors, etc, to raise their prices or brands like Versace and Jimmy Choo to lower their prices.
I feel like they'll just raise all the prices in unison
@@ubiquitousflow Probably.
Price increases are ridiculous it doesn’t cost 2000 dlls to make a plastic speedy. Definitely more careful witch luxury bag I get next
I love coach so we see I am from London England but live in Los angles USA I do not thing it will hurt LVMH we all slowed down in usa
In California the economy is pretty bad. Housing, fuel and utility prices are the highest in the country. Crime is high and luxury items are being stolen from people individually as well as gangs of people doing crash and grabs at stores. High unemployment is kicking in and interest rates are high. I think most people are more particular when looking at luxury items of all types. It’s not safe to be out and about with a luxury handbag in some areas. All of these things make me ponder if purchases can wait. I’m lucky enough that my employment has not been affected by this recession thus far but I’m mindful that saving is better than spending at the moment.
If anything I hope Versace shoes improve. Coach and Jimmy Choo have quality shoes and relevant styles.
I think that big companies shot themselves in the foot with their infinite greed. Their main motto was higher revenue year over year and they were achieving that with enormous price hikes and lowering cost of production. Customers are not fools as they thought to pay few thousands € for a bad quality bag. I also noticed the same things happening at cheap brands like Ralph Lauren or Hugo Boss. Prices doubled at least and quality is worse and worse. From my point of view they deserve the losses, they made all of this themselves, not even related to the bad economy situation.
Economy is definitely slowing down, I notice that for bags like Birkin or Kelly, one year ago I couldn't find any below 20k€, now I see the prices dropping and some can be found already from 10,12k€. I think the best thing to do now is to sell asap things that one wanted to sell while market didn't come to a full stop and save money.
Good points
Hi Sophie, do you think due to acquisitions like this we will see the expansion of diffusion lines like we had in the early 2000's?
This is a great point Hannah, it could well do!xx
i love coach because I can afford it and the quality is so good, I love some of Versace's designs, especially their handbags the past few years but they are out of my budget. I hope they keep their style and quality. it would be a shame if that changed because Donatella is retiring.
I said this on the hike prices these last few years as well as the rise of super fakes. These luxury brands were digging their own graves, because we're headed to very dark times. The luxury crowd doesn't want to talk about it, but we all know about the elephants in the room.
quite behind the curve
Tapestry is making great moves.
Hi Sophie!!! 22 mins late!!! I seem to have lost my touch!!! Hope your week is going well. Hugs xx
Hello Jill! Great to hear from you! The week is going well thank you - we’re off on Saturday to collect a bunny we’re rescuing as a friend for Jessie. Hopefully she accepts him as a pal! 🤞 Hugs and I hope life is great with you!xx
@@SophieShohetOfficial ooh exciting...fingers and toes crossed for you that they settle together. xx
Sophie how will this affect your hauls? xxx
I have quite few Coach bags, but I would not buy LV as of the fakes that de- valued the brand... The acquisition might devalue Versace further, prices will stagnate or go down dragged by the other brands, LV fakes are all over the place making the brands worth less. I would not buy LV monograme because of it. And I disagree re Kate Spade. Although I have one of their bags and like the quality, I do believe they are aimed at higher demographic, 45-60 rather than young audience.
Are any changes in the horizon for Ralph Lauren?
GOOD QUESTION!
In America, scaling down to only one luxury item per month
USA. Very tough times.
I am from Germany and I am sure, that I have 15 to 20 % less in the pocket.
They are getting Michael Kors as well.
This is true!!xx
you can have but so much darn handbags, no sane human needs 20-40 handbags and 500 pairs of shoes. Of course it is going to to slow down. The Wall Street Journals article today said that people make over $100,000 US is getting laid off faster than people who may less. So there you go.
Versace 👀😳😩
China is financially in a decline as well as a population decline. I wonder if there will be at least sales on Versace goods once they own the brand, as Tapestry sells lower priced goods. I know they won't lower their prices, but maybe they will have more sales throughout the year. In this economy, it would be nice to be able to still buy some designer goods. I buy Coach and Kate Spade as these two brands, as well as Michael Kors, are the popular brands in this area of North Carolina, as well as being much more afordable. Plus their quality is still very high compared to non-luxury goods.
Can we leave the tacky almost cheap looking versace design of the last decade on the side of the road with this transaction please ?!
This will be terrible I hope this does not go through
I agree. Maybe Donatella needs more plastic surgeries 😠
@@joannasliwa8147 why are you attacking her ?
Most of the brands they own such as Kate Spade, MK and Stuart Weitzman, in my opinion have become like pricier mass market brands and styling. They all have a certain look to me that screams outlet and over exposure. Stuart Weitzman used to be original and amazing quality. Kate Spade used to be interesting and fun and lovely quality. Now? Not. MK just looks sad.