It’s really a sad day when I have to publicly wag a finger at a company I used to admire. I’ve kept my opinion to myself for the most part, but the situation has reached a boiling point and I’m furious. And I’m not alone.
It wasn’t enough that Coach decided to move manufacturing abroad…they have to answer to their stockholders, after all, and things are made more cheaply in China. Well, we’re all about low prices, aren’t we? And it also wasn’t enough that they expanded their core leather line into a mostly-canvas product base and have strewn their brand-tastic logo across the globe with self-serving, self-advertising bags, wallets, scarves, key chains, hats and even fragrance.
Now they’ve decided to play hardball with their customers. Specifically, the outlet shoppers. Seems Coach has decided that they don’t like their products being purchased at the outlet and resold on eBay. Shame on anyone who thinks they can purchase an item at a low price and sell it for a profit.
It started with Coach limiting the number of bags any one shopper or group of shoppers could purchase. Fair enough, lots of stores do that. But, Coach has taken this a step after ugly step further.
I’ve heard lots of stories recently about loyal outlet shoppers being unceremoniously, rudely and publicly handed what has come to be known as “The Letter.” I can’t even imagine the humiliation these customers went through for the horrendous crime of…buying Coach products. “The Letter” states, unequivocally, that the recipient is no longer welcome to shop in any Coach store anywhere. Ever again. The customer is banned for life. I have heard horror stories of women who learned that their picture had been taped to the staff room wall like some kind of bargain-hunter’s mug shot. Of others whose family members were banned for the crime of sharing a name or address. And still others who were handed a letter simply because they refused to give a name at the counter when paying cash for their purchases. Or mentioned the word…eBay. Ed. Note: If anyone wants to email me a scanned copy of their letter, (with personal info blacked out), I would love to post one here.
But Coach didn’t stop there. Now comes the worst insult of all. A well-respected eBay reseller with positive feedback numbers in the 5-digit range tells me she has had some of her auctions pulled by VERO — the counterfeit fighting arm of eBay, in what must be the most egregious story of big-corporation-strong-arming-little-guy I’ve ever heard.
A VERO takedown is no laughing matter. A seller can only have a certain number of these before they have all selling privileges suspended, under ALL ID’s. VERO exists to protect all of us from buying counterfeit merchandise (or, more acurately, to protect the rights-holders). For the most part, VERO is a good thing. But if one is on the wrong side of VERO, and doesn’t deserve to be, one is in a bit of a pickle. Once an item has been removed, the seller must prove authenticity and have the takedown lifted by VERO prior to re-listing. Should the seller try to re-list without this approval, they get suspended from selling on eBay. Permanently.
Here’s the story as it was told to me: The authentic seller in question got on the bad side of a counterfeit reseller. (Bad seller was selling Hello Kitty Coach items…which Coach NEVER made, BTW…and mistakenly thought good seller was the one who reported her). Angry counterfeit seller reports good seller’s items to VERO, and good seller’s auctions get pulled. Ordinarily, this mistake would be a minor pain in the neck and resolved quickly. Unfortunately for good seller, it seems Coach is trying to make an example of her. Good seller tells of faxing receipts, pictures, etc. to Coach in her efforts to prove authenticity. She knows they are authentic…she purchased them herself from Coach. She tells me that Coach has been trying very hard to get her contact details with each request for new information–and stonewalling her–because she has been very clever in not releasing it (we all suspect they want her identity because they want to send her “The Letter”). For example, they want her mailing address “so they can mail her a copy of their decision,” even though everything so far has been conducted electronically. Yesterday, she says she received a message where Coach claims that the photos of the pulled items, items that she purchased from their outlet, items for which she has receipts, are counterfeit. So, are they saying they sold her counterfeit items? Or are they just flat-out lying? She’s currently considering her options, including filing in federal court for loss of earnings and illegal takedown. Of course, Coach would have her details then–and she will get The Letter and won’t be able to buy any more from Coach–though I doubt highly that she would ever give them another dime anyway. If I had any say in the matter, bad-counterfeit-seller might be on the lookout for that subpoena as co-defendant.
But beyond this seller’s story, there’s a bigger picture. My question is this: why does Coach care what a person does with their merchandise once they own it? If Coach’s outlet prices are so good that a savvy shopper can make a profit, shouldn’t Coach be looking at their pricing structure? Or their marketing model? Or their return policy? If Coach hadn’t opened up so many “outlet” stores, they wouldn’t have cheapened their own brand in the first place. You can’t tell me that straight-to-outlet lines don’t bring down a brand name. If Coach sold past season and scratch-and-dent items online, as do many other retailers, all those eBay resellers would be out of business quickly and nobody would have to bear the shame of “The (scarlet) Letter.” Think of the overhead Coach would save if they closed most of the outlet stores and implemented an outlet website. I don’t believe it’s too much effort to sell outlet items online. The resellers are managing just fine doing it themselves - for now.
I used to respect Coach for delivering American-made, quality leather goods. But I have recently lost all respect for them as a handbag manufacturer, as have MANY other handbag fanatics out there who have been following both the “Letter” story and what we perceive as a decline in overall quality standards.
What can you do? Act with your feet. And your (non-Coach) wallets.
Join the Anti-Coach Coalition.
Just Say No To Coach.
22 responses so far ↓
1 heypursegirl // Oct 24, 2007 at 4:12 am
What an incredibly accurate and articulate piece.
I’ve been a member of the anti-Coach coalition for a few months. I can no longer buy Coach since Coach in their infinite wisdom has decided to hand out “banned for life” letters to those I bought from the last few years. My group of trusted sellers has greatly diminished.
I’ve sold all but 2-3 Coach items I own and they two will go eventually since they are up for sale. Going forward, I will give my hard earned money gladly to a company who respects me and my business…better still I’m much happier with items made in France, Spain, Italy and USA rather than garbage made in China. There is nothing of quality that comes out of China included but not limited to Coach products.
Thanks again for such a thoughtful editorial. I’d give it five out of five stars.
2 C // Oct 24, 2007 at 7:04 pm
Nice story Lisa! Very factual and frightening!! Let’s hope that Coach makes some policy changes.
3 lorlee // Oct 24, 2007 at 7:29 pm
Here here! Shame on Coach! Not only have they cheapened their own products but now they are alienating a group of people that actually promote their items.
4 satchmol // Oct 24, 2007 at 10:32 pm
What a well thought out, well written article. The way they are treating Mandy is shameful. No wonder their stock id down
5 kjc // Oct 24, 2007 at 10:57 pm
This happened to my friend. She was very upset by it for a long time. Everytime we talked about it, I thought she was going to puke. I agree, I don’t see why Coach would care what you do with that bag once it is your property. They have alread gotten revenue for it. If you want to resale it, it does belong to you!! I think a big old class action lawsuit would be in order. I don’t see how they can legally keep you from buying in their store. You know free commerce, constitutional rights etc… But if they are going to act like that, might be worth it to put some cow duuky in a couple of those high dollar bags and send it to them to let them know how their once loyal customers really feel!!
6 NSP // Oct 25, 2007 at 2:34 am
Shame on Coach. We work hard to keep the fakes off ebay and for Coach to do this to a reputable seller is just plain wrong.
7 shopgirls609 // Oct 31, 2007 at 4:48 pm
It would be great if Dateline NBC or some media outlet could do a story on this. This story needs to get out!
8 MK // Nov 5, 2007 at 6:24 am
What a great summary of Mandy’s situation. I continue to be shocked by the tactics that Coach is using. I wished for years that I had a Coach bag and now, that I have several, I simply don’t want them anymore. And, I will certainly never buy another Coach bag again!
9 italian Redhead // Nov 10, 2007 at 11:20 pm
The above editorial is excellent! This is not just happening to Coach outlet customers but also to customers purchasing from a full retail Coach store.
That is where I was handed “The Scarlett Letter”. In front of a store full of people, it was announced that I could not shop here and I could never shop in ANY Coach store for the rest of my life. Can you imagine how embarrassing this was for me and my friend shopping with me?
They wait until you come into one of their stores and present you this letter. The letter had my full name and address on it, so they had that info. and could have mailed this letter to my home and spare me the humilation. The actual letter came 3 months later.
It is funny how you can go from their very best customer who they called at home and invited to make an appointment with the manager to come in and place an order using the PCE coupon. The PCE 25% off coupon is how they reward their repeat customers. Now I am treated like a criminal with no explanation given except that my spending pattern leads them to believe I am re-selling their product.
Coach refuses to answer my emails, calls and letters.
This is not just happening to a few people. Coach is tracking down every re-seller and it is just a matter of time before “you” get presented with the “Scarlett Letter”. Coach is on a mission. Too bad that “Mission” is not directed at something more productiove, like trying to get rid of the counterfeit sellers that are making a mockery out of the Coach design.
Coach fails to realize that these “re-sellers” that they are treating as criminals were the very reason their Coach outlet items were selling. They have found that without us their sales fell through the floor! Their dip in stock has proven this to be true.
Coach could beg me to come back and offer me a 50% discount and I would laugh in their face and tell them I have moved on to a “real” designer handbag.
Coach you have shot yourself in the foot!
10 Gucci Girl // Nov 11, 2007 at 12:38 am
This is my “Scarlet Letter”.
Mrs. XXXX XXXXXXX
Street Address
State & zip
March 15, 2007
Dear Mrs XX XXXXXXXX:
The volume of your purchases along with your habit of buying duplicate items suggests that you are purchasing Coach product for resale. While we appreciate your enthusiasm for the Coach brand and your entrepreneurial spirit, we must advise you that no one is authorized by Coach to resell product purchased from our stores, website or accounts.
As you know, the Coach brand is synonymous with quality and excellence and Coach applies consistently high standards to its products, its consumer services and its distribution channels. To maintain these standards, Coach limits distribution beyond our own stores and our internet site to a select group who are carefully chosen for their capability and willingness to provide the resources to drive the sale of Coach product in an image-enhancing manner.
As the manufacturer of Coach brand products, we are responsible for positioning our brand and supporting the attributes that Coach believes are important to maintaining and developing consumer relationships. We believe that unauthorized distributors and retailers lack commitment to the Coach product, lack the capital investment required and, possibly, lack other criteria that are very important to the Coach brand.
Please be advised; we have notified our stores and distribution center of this matter. They have been advised that you are no longer authorized to purchase our products. I would also like to point out that we will not be able to sell to anyone who we believe is acting on your behalf.
Sincerely,
Cynthia Linke
Regional Loss Prevention Manager
[quote]
I was presented this letter at check out by the Store Manager. I received a 25% off Customer Appreciation coupon in the mail and had come into the store to shop. The SA assisted me for at least 30 minutes and also had looked up a few items I wanted to buy that this store did not have in stock. This entire time the Manager awaiting to present this letter at the time of payment.
When I told the Manager I did not understand the meaning of this letter (I was in shock!) she said “You already received a copy of this in the mail, so why would you think you were welcome to come into our store to shop?
Mind you there was a store full of people shopping on this weekend day. This was planned out from the minute she saw me walk into the store until I was at the desk to check out. She announced that I was not welcome to shop in any Coach store ever again, and my friends or family were not welcome to make purchases in my behalf. The manager also said that I could call Coach and appeal this decision, but it would not do any good she said with disgust, because they know you are an Ebay Seller.
I must say this was the most humiliating time in my entire life, but I held my head high. I threw the coupon they mailed to me on the desk and walked out of the store never to return again.
I understand why Coach may not want their product re-sold on ebay because they would have no control over how their items are handled. But when I see their product sold at discount stores like TJ Max and Marshalls, it shoots that theory. Their handbags are hanging from a rack & handled by many women and children. When purchased they are thrown into a paper sack.
Coach is the one that has cheapened their product, not me and not eBay sellers. Why they would want to treat loyal customers in this manner is not understood, but I do not have a problem taking my business & money elsewhere.
11 Koko // Nov 11, 2007 at 11:48 pm
Fabulous commentary!! Have not had this experience but you have convinced me to find another brand to collect. Guess that I also will be getting rid of many Coach bags in the very near future.
To treat anyone like this, let alone a good paying customer is a shame. Don’t they know, “the customer is always right”? This is a horrible way to conduct business and if they crash and burn in the future, it is their own doings.
12 Michelle // Apr 14, 2008 at 10:19 pm
I was in TJ MAXX today and noticed quite a few Factory Coach bags. I told one of the ladies at the sales table that I couldn’t imagine why bags normally sold at the outlet were here in TJ MAXX. We’re talking about recent styles such as the Bleecker collection. It gives me the impression that Coach bags aren’t selling like they used to.
13 Katie // Apr 18, 2008 at 7:29 am
Attention, all “banned Coach customers”, the Anti-Coach Coalition, and all other contributors. We need to get this Scarlet Letter issue out to the media! This is outrageous behavior and we need to make a big PR stink, so that Coach will quit bullying customers around with their obnoxious letters.
Yes, their stock has been down for the last two fiscal quarters, so it is quite comical that they are discouraging business. Just wait until we slide into a recession and see what happens in the Coach american market.
ATTENTION: I found an article on FOXNEWS.COM under the Business Link and Coach is having a conference on April 22nd to discuss the last fiscal quarter. Go to (http://www.foxbusiness.com/markets/industries/retail/article/coach-host-quarter-fiscal-year-earnings-lew-frankfort-chairman-.ceo-mike-devine_563471_7.html) to view the article.
We all need to email the editor (there is a link) to tell him about the “Scarlet Letter”and let stock holders know how Coach is running off customers, along with their friends and families. Potential and current stock holders should find this information rather interesting. You know the investors don’t care who is buying. They just want the inventory to move.
Please everyone email the editor of this article. The more comments he/she hears, the better. We have got to get this out! We need to warn the public that Coach is breathing down their necks, so they should find another brand. Who knew you could spend too much at a retail store?? If we describe in detail how Coach embarasses the customer in the store with this letter it should be a major deterrent and bad publicity. A big PR stink is just what Coach deserves! We need to email every news outlet until someone picks up the story. A class action lawsuit would be another interesting project to pursue.
The best thing for now is to talk to your friends, their friends, your co-workers, your family, and everyone else. We must get the word out that Coach is discriminatory and mistreats customers. Go hang a sign in your local mall. I have a friend who works at a mall and I asked him to hang a sign on his smoothie stand. Publicity is a powerful tool and this will be damaging to the Coach reputation. Oh, and don’t forget to mention to everyone that Coach is now sold at discount stores like TJ Maxx. The Coach name is losing clout by the day. We, the customers, will declare war on Coach!
14 Coachsupporter // Jun 3, 2008 at 1:32 am
Why declare war on something that you obviously have no insight on? This “editorial” is completely one sided and ignorant. You are worried about the embarrassed customer that “had no idea” that COACH was watching their purchasing patterns…what about the stockholders? The employees of COACH? The reputation of the label??? The stockholders expect COACH to protect a bottom line, protect profit margins and maintain a product that is of high quality. The employees are compensated well, and remain loyal to a company that they stand behind and trust. COACH has done a great job of producing a line of product that you can afford and all you can do is bash them! You say close the outlets and sell everything online????? Let’s put 1000’s of people out of work?? If you are so great at selling COACH product…get an application for a sales associate position! If you are so wonderful at marketing COACH product ……there are positions at the corporate office for you too! And if you are so disgusted with COACH product and its quality….create your own highly succcessful business so that we can trash your business plan; your marketing approach; and the integrity of your vendors!
AND to the stay at home Mom that has lost her “job”, spend time with your kids…..for all of us that have to leave our kids to sell you the handbags in which you trash!
Resellers are known as soon as they walk through the doors of our store. We know who you are and we will not stop until you are all out of business!
15 Lisa // Jun 3, 2008 at 2:26 pm
Why declare war on something that you obviously have no insight on?
READ CAREFULLY: I said COACH had declared war on its customers…I declared war on nobody.
This “editorial” is completely one sided and ignorant. You are worried about the embarrassed customer that “had no idea” that COACH was watching their purchasing patterns…what about the stockholders?
Exactly…Coach cares ONLY about their stockholders. Customers…not so much. A bit one-sided on their part, don’t you think?
The employees of COACH?
I’m pretty sure they only care about their employees as long as the employees are selling the required amount of product to the “right” people. What would happen to your job if you were to sell too much to known resellers? Or not sell enough product? How much would Coach care about you then?
The reputation of the label???
Reputation? Coach ruined their own reputation by moving production to China and significantly lowering the quality of their product. In the opinion of many, it has become overpriced, logo-strewn crap.
The stockholders expect COACH to protect a bottom line, protect profit margins and maintain a product that is of high quality.
Your first two points here are absolutely correct. However, the major stockholders don’t care one bit about quality so long as the first two objectives are achieved. In fact, if quality interferes with the bottom line, the stockholders will demand changes. Ask them.
The employees are compensated well, and remain loyal to a company that they stand behind and trust.
I’m sure they do, or you wouldn’t be here writing this.
COACH has done a great job of producing a line of product that you can afford and all you can do is bash them! You say close the outlets and sell everything online????? Let’s put 1000’s of people out of work?? If you are so great at selling COACH product…get an application for a sales associate position! If you are so wonderful at marketing COACH product ……there are positions at the corporate office for you too! And if you are so disgusted with COACH product and its quality….create your own highly succcessful business so that we can trash your business plan; your marketing approach; and the integrity of your vendors!
I don’t sell Coach products. And I won’t sell Coach products. Because I won’t buy Coach products. I merely tell the story of one reseller that has seen the ugly end of Coach’s tactics…and warn others that they may be next.
AND to the stay at home Mom that has lost her “job”, spend time with your kids…..for all of us that have to leave our kids to sell you the handbags in which you trash!
Ah, how enlightened of you. Moms who stay at home shouldn’t be earning money, they should be raising children, barefoot, in the kitchen, too, no doubt. The stay-at-home Mom wasn’t trashing Coach–she was giving them a whole lot of money–until they trashed her…for doing absolutely nothing wrong except BUYING COACH PRODUCTS AT THE PRICES THEY SET.
Resellers are known as soon as they walk through the doors of our store. We know who you are and we will not stop until you are all out of business!
Of course, I would expect nothing less from Coach employees who have been ordered to do this…your response validates my entire editorial. Coach wants to put resellers out of business. Why? They are only selling products they bought from Coach at the prices Coach sets. So why the war, Coach?
16 Sunny // Jun 15, 2008 at 8:13 pm
Not to mention now that Coach is now going to be manufacturing in Vietnam ! I am so sorry I bought a Coach Bleecker bag last year before I knew all this, now I feel kind of sick when using it.
http://www.iht.com/articles/2008/05/29/style/coach.php
17 Marcia // Jun 21, 2008 at 10:07 pm
I too have been treated like crap by COACH. Everytime I go there the manager treats me like crap, never cracks a smile nor does she speak. She walks around and points at me to the other employees, when I am there they make me feel as though I am guilty of a crime that I did not committ. I called COACH and complained not realizing that there is a “scarlet letter”, I am sure I will recieve it now though!! The Coach rep told me that reselling a coach item is just as bad as piracy of dvd/ movies, I was dumb founded!!! Piracy is stealing, how am I stealing something that I have a reciept for??? I just want to know, LEGALLY can COACH do this??? I feel sick over the situation. The rep also told me that COACH is trying to crack down because they are loosing money, well why do they have 50% sales continuously where you can get a wristlet for $15?? Don’t blame a savy consumer for your companies downfall. If they were so dignified and wishing to maintain a high stature in the handbag industry then why are they at TJ MAXX and ROSS? whats next WALMART???
18 Kitty // Jun 29, 2008 at 3:15 pm
I too have received my “scarlet” letter. I am going to file a complaint with my state’s Attorney Gerneral’s office. I frequently bought at two different outlets and was encouraged to buy large quanities. The same manager that called me when new retail transfers came in decided to turn me in. I agree with the above postings- if I am paying retail for an item, paying my sales tax, and not infringing using their trademark- it is not any their business what I do with the merchandise I have purchased.
For comparison; when a hot model special edition vehicle is coming out- people put their names on “lists” at dealerships to buy the car for the sole purpose of selling it for over the sticker price. What would stop GM from selecting who can buy and who cannot because you may not keep your vehicle? What if you are a season ticket holder and your team makes the playoffs? You can’t sell your own tickets for a profit? People spend the night in line to buy I-phones and Play Stations with the sole intent of reselling; are the merchants allowed to questions each party and decide who can buy and who cannot? It’s all the same- you cannot discriminate against people in this country!
I understand the need to protect a brand- but I am not the one cheapening it! If anything I feel I was helping to make it more desirable by the dedication I had displayed to the brand and how I conducted my “business”. I could very well have ordered fakes off of any number of websites and tried to pass those off as the real deal.
I think what angers me the most is that the whole thing seems so un-American! Is this not the land of opportunity? We are encouraged to be entrepeneurial and yet if someone finds a way that a large corportaion does not approve of- even if it is not illegal- they are allowed to squash the little guy. How many individuals can afford an attorney to do battle with a coporation?
Coach banned the wrong girl this time! I have an attorney looking into this- and I agree it needs to go to the media- I can see my self on Dateline now- banned for buying too much! I have heard some rumblings of a class action lawsuit als0. That may not be a bad idea.
19 another coach supporter // Jul 30, 2008 at 5:32 am
All you people whining about being banned from coach is ridiculous. You are not licensed to sell coach products. Period. The end. Talk to your attorney all you want, it will do you no good.
20 Lisa // Jul 30, 2008 at 7:41 am
Americans don’t need a license to sell their own personal property that they purchased legally.
21 Kitty // Aug 10, 2008 at 11:10 pm
I agree with you Kitty- and I have never claimed to be a “licensed Coach distributor”. In fact, every listing I have ever put up had a disclaimer to the contrary. I find it ironic that someone like me gets a letter saying they are protecting their image and that I lack a committment to the brand- but just this week was a 1/4 page add from TJ Maxx advertising designer bags- I went to look and guess what- over half of them were Coach- with the original Coach price tags still attached. Like TJ Maxx cares about the Coach image when their items are laying on the floor being run over by shopping carts.
22 Kitty // Aug 10, 2008 at 11:13 pm
Another thing I forgot to mention is that sales of Coach products are plumetting on ebay. I actually received a call this week from ebay wondering if there was anything they could do to help me get my sales back up. I think the brand has become over saturated- with too many outlets- and people are moving on to other products.
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