In 2012, Coach has 350 retail stores and 157 factory stores worldwide, there was a time when you need to fly all the way to USA to visit one of these factory outlets for to enjoy massive discount from Coach. These days, Coach Factory outlets are everywhere with the most recent additional in Malaysia at Johor Premier Outlet. What makes these outlets so attractive is the massive discount that it offer. If you have been to one of this Coach Factory outlet, you will be issued a voucher like the following where you will be entitled 40-60% discount for that day or even additional discount.
In past, factory outlets used to sell off-season or defective merchandises but these days, it is a different ball game for Coach. Whatever that is sold at factory outlet will not be available at the retail outlet and whatever you plan to buy at the retail outlet will not be available at the factory outlet. Coach’s Senior Vice President of Investor Relations and Corporate Communications has acknowledges that the Coach factory stores sell different merchandise but with the same excellent Coach quality at an “affordable luxury price.”
I guess Coach marketing strategy will be to cater to different pool of consumers, the fashion-forwarder buyers that are willing to buy full retail prices at the retail outlets and bargain-crazed, coupon-addicted factory store customers that are more interested in saving money at the factory outlet
So next time if you think you got a good bargain at the Coach factory outlet, think twice, even though it is same brand the material, make and quality used to make these bags is likely something more “affordable” for the mass market.