There’s a limited number of women who are interested in spending between $200 and $400 for a purse, and that market is becoming more crowded. What’s a company like Coach to do in the face of falling sales and falling profits? Sell more expensive bags targeted at more affluent customers, of course. [More]
Around this time last year, we posted an article about how luxury goods companies are marketing their products as “investments” during the recession, rather than indulgences. It’s an interesting way to position four-figure handbags, but a bad use of the word “investment.” The Los Angeles Times’ Your Stylist column recently brought out this meme, describing an expensive handbag as an investment and “your new best friend.” Should it be?
Kristie wanted a specific bag, in a specific size, and ordered it directly from Louis Vuitton. They sent her correct item, but in the wrong size. They had sent her the Speedy 25, which costs $25 less and is quite a bit smaller. The company sent her a pre-paid shipping label so she could return the bag and they could correct their mistake. Two weeks later, she received the same box back, with a letter informing her that the bag had obviously been used, and they wouldn’t accept the return.