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Successful Sale Of Student'S Italian Classics From Luxury Brand Coach

2011/3/21 9:28:00 345

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Coach wandering around

Luxury goods

and

Fast fashion

In the middle, vows to break the logic of luxury, what the company needs to do is pull down the luxuries that the luxury goods worship.

Standing at the top of the Shanghai world financial center near the height of 500 meters, the most favorite thing Lew Frankfort likes to do in the US is to stand in front of the glass window to overlook the Frankfurt river.

Rows of buildings across the Strait often make him mistaken for himself in New York.

As a luxury brand Coach Global

CEO

Frankfurt feels that "Shanghai's fashion sense is getting closer to New York", which provides a good environment for the rapid expansion of Coach in China.

You know, the brand pursued by young girls was once regarded as a patent for middle aged women in the United States before 2001, and the evaluation of "old" and "outdated" was endless. Even the growth from 1999 to 2000 was negative.

But today, it has not only become an alternative for consumers to pursue luxury, but also has created more than 70% gross profit in recent years.

"The Coach package has appeared in the new season gossip girl, and we didn't spend money on them in the show."

Coach Asia president, Andre Cohen, said.

So how did Coach turn from a featureless brand in the us to a global luxury brand?

Founded in the 40s of last century, the Coach brand has always been the symbol of American professional women.

Until the late 80s of last century, Coach became the favorite of American families for its durable quality.

At that time, most women working in Wall Street wore straight breasted shirts, silk necktie and a Coach briefcase.

However, this situation changed in 90s.

American office workers no longer want to dress so stiff and serious, and briefcases can be replaced with more fashionable styles. This new workplace trend has begun to impact traditional conservative Coach.

At the same time, brands such as LV and Gucci from Europe began to enter the American market. These European products are brightly colored and stylish, compared with the limited variety of Coach at that time and little innovation in style.

Times changed. Coach got up early but caught up late.

For Lew Frankfort, who took office in 1995, he realized that "it is time for CEO to change". (Lew)

In 2000, the average selling price of Coach was $200, less than half that of European products, but the quality remained "strong and durable".

In view of this situation, the company has discussed the positioning of "luxury goods at hand", hoping to provide another alternative to consumers who do not want to buy high priced products but are eager to have boutique products.

As a matter of fact, there has been a century old tradition in the luxury business created by Europe. The design and sale of luxury goods almost ignore consumer demand. The style follows the principle of new year round, and refuses mass production and innovation.

In other words, they only take the rich class as the ultimate target group.

The higher the price, the lower the sales volume. The "consumer group is too narrow" is the most disgusted way of European luxury management in Frankfurt.

"In the US, we lock in 20% of the top families, and other European brands may only lock 3% of households."

He explains so much about Coach's choice.

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Coach luxury brands

According to industry analysis, there are two forces to promote "easy to get luxury" possible.

In the first place, more and more consumers are willing to spend more money on certain products in exchange for better products and services. At the same time, they are willing to save money in some ways so as to save money for high quality products.

On the other hand, with the popularity of the M society, the middle class will become less and less, and the two level differentiation of consumption will also increase. This means that the middle brand with no characteristics will lose the market, and people will tend to buy luxury goods or buy cheap goods.

What Coach does is shift from a moderately positioned commodity to a boutique.

For those who have both luxury consumption and not much disposable income, Coach just cut their demand for consumption upgrading.

Further, what Coach wants to do is pull down the luxuries that the luxury goods worship.

After making clear the brand positioning, Coach needs to make the brand more youthful and fashionable, and even challenge the rules of the industry to reverse the impression of its "old-fashioned dull".

To achieve this goal, the first thing to do is change the product.

In 1996, Frankfurt persuaded the 33 year old designer, Reed, Krakow to join Coach in order to launch a series of product changes.

The addition of Reed made the Coach bags with only leather and monochrome in the past become diversified. Nowadays, the Coach bags made entirely of leather account for only 35% of the total, and the remaining 65% are mostly handbags mixed with different materials such as textile fabrics, leather and canvas.

Compared with the heavy feeling of full leather products, the novice bag becomes lighter and more fashionable.

After the "makeover", the second strategy of Coach is to speed up the listing of new products.

In fashion industry, it is a common practice to introduce new products every quarter.

Coach used to be the same, launching a new product every quarter, sometimes selling for a whole year.

But Frankfurt realizes that it is too slow to stimulate consumers' desire to buy.

Only monthly new goods can attract their shop patronage rate and repeat purchase rate.

"Launching new products every month can greatly reduce the risk of our business downturn, because no product of any month will be particularly critical."

He said, "customers feel that Coach has pushed 12 new products a year, but the actual backstage work is only 6 times, which means that the designer will prepare for the launch of the new product in the first two months."

The new products of the month will always be placed in the most important position of Coach stores.

Under the new shipping strategy, the company became the first boutique brand to bring different styles and packages on different occasions, seasons and time.

It is reported that Coach has a team of 250 people in New York to design, advertising and provide creative services.

Next, the third step of Coach change is to redecorate the store.

In 2000, Reed turned the Coach store, which was originally made of mahogany and "library", into a white, bottom, larger and brighter fashion space, creating a relaxed atmosphere of "welcome to shop at any time". At the same time, all products were liberated from the space of wooden shelves and opened for display.

Coach hopes that the new atmosphere of the facade can be compared with other luxury brands, such as dim lights, heavy doors and serious atmosphere.

In order to maintain a globally unified image, Coach has been required to update windows at the monthly headquarters display guide.

The location of Coach stores is rather harsh. The company chooses as many as 1 million of the street corners as possible, so that pedestrians can see the situation from any road.

It always likes to be adjacent to other European brand shops, so that it can share the flow of top brands and create the same impression of the top brands in the minds of consumers.

But Coach is not stick to the rules. In addition to choosing the busiest section, the company will also set up counters in shopping malls, department stores and even OUTLETS.

It is in such a new market positioning, Coach has opened up the trend of parity boutique, and laid its own business model.

Constantly updated products and easy prices make Coach more widely exposed to women who can freely control their income. They have become an important thrust to support Coach's growing.