I have to admit: I chuckled in amazement when I saw that Coach (NYSE:COH) offers a line of baby products. I had a hard time dealing with the thought of tiny Coach purses, tiny Coach leather gloves, and other miniaturized Coach wares. (And, given the Coach brand name, it's guaranteed that all of this "tiny" stuff will bear grown-up price tags.)
Coach certainly does offer cashmere mittens, blankets, and teddy bears for infants and babies. However, the vast majority of the product line includes leather photo albums, enamel frames, and, of course, what might be seen as a must-have for the well-heeled Mom, a Coach baby bag.
When it comes to designer apparel and accoutrements for a baby, I would imagine that lots of us would most certainly blink an eye at, say, the Coach pom-pom cap for baby that costs $98 (as do the mittens mentioned above). The product line includes a $398 diaper-and-associated-baby-necessities bag, a $58 teddy bear, and last, but not least, a $48 key fob. (Ahem!)
Many moms certainly go for less expensive baby gear -- Target (NYSE:TGT) or Gap's (NYSE:GPS) Old Navy are big destinations for parents who juggle the needs of a newborn in a more frugal manner. I know many moms who are of the opinion that spending too much money on gear is silly when baby grows out of everything quite soon enough. (Not to mention, infants certainly don't distinguish according to brand -- if they did, parents would be in big trouble!) Regardless, though, there are plenty of people who prefer luxury or aspirational brands -- Coach is a popular one, as is Tiffany (NYSE:TIF).
It may have seemed silly to me at first blush, but Coach has been doing quite well as an investment over the years, having successfully attracted a cross-section of shoppers, in different income brackets, many of whom see the brand as an affordable luxury. Meanwhile, it is the holiday season, when doting grandparents and other family members are gearing up to find the perfect gift for special little someones everywhere. Coach for baby might seem like madness to some of us -- but it seems more than likely there's great method to the madness as the holidays approach.
More on consumer retail spending:
- Should Christmas be canceled?
- One Fool looks at Coach's questionable call.
- Was earlier retail chatter much ado about nothing?
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Alyce Lomax does not own shares of any of the companies mentioned.
