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    Is Luxury Brand Coach2013 New?

    2013/2/17 13:51:00 40

    CoachCoach HandbagsLuxury Goods

    < p > will you buy Coach's "a" target= "_blank" href= "http://www.91se91.com/" > shoes, /a, watches, or windbreaker? These products that originally seem to just dot the product line will be Coach as the main source of income in the future.

    < /p >


    < p > starting in spring 2013, < a href= "http://sjfzxm.com/news/index_f.asp" > Coach < /a > will launch more shoes in 100 of the total price stores in the United States and 50 flagship stores worldwide.

    Then, Coach will also formally launch its women's clothing series.

    < /p >


    < p > Coach hopes to use this strategy to solve its problem of reaching the top of the handbag Market. Coach's CEO Lew Frankfort gave a less optimistic performance data in the 2013 quarter of January 23rd's second quarter earnings conference: the total revenue of Coach in the second quarter was 1 billion 500 million dollars, of which the revenue growth in China was 40%.

    But in North America, which accounts for 73% of Coach's total revenue, same store sales fell 2% year-on-year.

    This is the third time that Coach has seen negative growth in the same store sales in the past 12 years.

    The first time in 2002 after the "9 / 11 incident", the second was the 2009 when the global financial crisis was serious.

    < /p >


    < p > to save the decline, Coach has tried many ways to find new customers, such as the launch of poppy series for girls aged 16 to 25.

    These handbags with an average price of only 260 dollars are bright and light in weight, and the nameplates with the Coach logo are no longer rigid printing, but witty graffiti fonts.

    < /p >


    The average selling price of P Coach handbags is US $300, but Lew Frankfort has found that more than $400 handbags are beginning to have more and more customers.

    In the summer of 2012, the "Legacy series" handbags, priced between $398 and $1400, were placed on display stands of Coach branches.

    Coach in the latest holiday sales statistics, more than $400 of handbags accounted for 20% of Coach holiday sales, and 1 years ago, the proportion was 16%.

    < /p >


    Less than P, however, these are just based on the adjustment made by the existing product structure, and the selling of handbags and accessories is not enough to sustain it in the fierce competition environment.

    < /p >


    < p > handbags are no longer profitable. One of the secrets of the fashion industry is that the focus of fashion week is always "a target=" _blank "href=" http://www.91se91.com/ "clothing" /a ", but 70% of the profits are created by the handbags and shoes of these brands, but Coach's brand characteristics are no longer attractive today.

    < /p >


    < p > Coach was born in Manhattan, New York in 1941, and it developed very well. Until 1996, Lew Frankfort invited young a target= "_blank" href= "http://www.91se91.com/". The designer, /a, Reed, joined the company as creative director, and repositioned the lowest price of $125 to become a luxury item.

    < /p >


    Less than P, the new handbags are similar to European luxury brands from material to style, but much cheaper.

    The competitive price ratio helps Coach quickly open the mass consumer market: these handbags fill the growing consumption desire of the middle class and cleverly maintain their identity.

    Coach was listed on the NYSE in 2000 and maintained double-digit sales growth every quarter for the next 6 years.

    < /p >


    < p > in order to reduce production costs, Coach also never denied that most of the handbag production was outsourced to China's foundry.

    Coach sets up a brand new business model for many brands, producing prices in China, and at the same time obtaining high profits through high-frequency handbags.

    < /p >


    At present, Coach still occupies 35% of the North American women's handbag Market, but Lew Frankfort has become more and more aware that "the market has changed" P.

    In the two quarter of 2012, Coach's North American same store sales negative growth showed that Coach's market was being eaten up by Tory Burch, Kate Spade and Michael Kors.

    < /p >


    < p > these competitors are growing very fast.

    Kate Spade and Michael Kors respectively released their financial statements for the two quarter and the four quarter in November 2012 and January 2013 respectively. The sales growth of two brands in the same store was 27% and 45.2% respectively.

    < /p >


    The style of Kate Spade, founded in New York in 1993 P, is more intense than Coach.

    The Kate Spade of bright and bright candy is sweet, yet not serious.

    The brand is also mainly sold for handbags, but then gradually added perfume, shoes and women's clothing to the product line, attracting many young office workers.

    < /p >


    < p > Michael Kors belongs to the new era of Calvin Klein, the style is concise and capable.

    It has introduced women's garments from the very beginning, and has a series of sub brand "MICHAEL Michael Kors", which sells shoes and handbags.

    Michael Kors, who was originally the creative director of Celine, is good at combining fashion with casual.

    Moreover, Michael Kors himself has a certain appeal in the fashion industry.

    < /p >


    < p > if you know these brands, how many of you can know what they are selling, but you can not tell the selling point of Coach.

    < /p >


    < p > maybe it is to learn from Michael Kors, Coach invited Sandra Hill to lead the new women's costume design team. The designer once worked as Paul dress designer in Paul Smith and worked there for 16 years.

    But the characteristic of Paul Smith is humor and free and easy. If it's Coach's DNA, it's even more queer than it is without DNA.

    Moreover, professional managers never change a brand fundamentally.

    < /p >


    < p > in the Coach pformation plan, more products will be developed, but this also means that Coach needs more foundries, and whether the larger scale investment can bring the corresponding return is unknown.

    < /p >


    < p > however, an Asian Retail Director of an investment bank in Hongkong, China who does not want to be named, thinks that the expansion of Coach's foundry is not a risk.

    "Investment and management problems can be handed over to the representative factory to complete. China's foundry industry is very mature. From design to production to quality control, there is no need for Coach to worry about it. Coach needs to invest in foundry."

    According to the industry practice, Sandra Hill is probably just a conceptual design, and the specific product design is still completed by the designers hired by the factory.

    < /p >


    < p > "Coach's biggest investment may be the need to smash money to advertise and create its own lifestyle brand image, for example, to enter the fashion week and to buy advertising pages."

    The interviewee said.

    This means that Coach must create some selling points out of thin air if they go well.

    < /p >


    P consumers need more products that represent their character, but there may be hope in emerging markets. China is the only market that brings positive news.

    In the two quarter, Coach not only increased the total sales volume by 40% in the Chinese market, but also had double-digit year-on-year growth in same store sales, and in addition to the 13 new stores opened in the second quarter, Coach already had 117 branches in China.

    However, Kate Spade and Tory Burch have entered China, though the number and popularity of their shops in China can not compete with Coach.

    < /p >


    < p > "we hope that when you think of Coach again, your mind will be women and men, and their way of life."

    Reed Krakoff says that he doesn't want people to think about handbags when they mention Coach.

    But the problem is that Reed Krakoff has to figure out what exactly Coach style is style?

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