COACH Releases First Quarter Financial Results For Fiscal Year 2014, Pushing New Product Line To Rescue Market

< p > by the drag of the North American market, COACH's performance in the new financial year is not optimistic.

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< p > recently, COACH released its first quarter financial results for the 2014 fiscal year. The results showed that COACH's operating income in the quarter was $322 million, which was 3% lower than the 332 million US dollars in the same period last year.

Gross profit decreased by 2% to $827 million from $845 million in the same period last year.

Gross profit margin fell to 71.8% from 72.8% in the same period last year.

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Jonathan Seliger (Serig), President of China P COACH, told reporters: "we will not feel a sense of crisis. We have great confidence in the strength of COACH brand, products and services, and these brands are new players in this market. They are still very small at present.

Let's make a simile. If we are driving, we can only see them in the rearview mirror. "

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< p > < strong > force men and < a href= "http://www.91se91.com/news/index_c.asp > shoes > /a > commodity < /strong > /p >

< p > < strong > pformation lifestyle brand < /strong > /p >

< p > COACH has been changing in the course of 72 years of development. At the beginning, COACH started with men's goods, but now it has developed into a "leather expert". Later, with its brand positioning of "accessible luxury", it became the brand of New York classic fashion accessories, and the main product of women's bags, but its men's products gradually disappeared.

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< p > COACH conducts market research every year on a global scale. The number of consumers surveyed is 50 thousand to 60 thousand, of which 8 thousand to 10 thousand are Chinese consumers.

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< p > it is through a lot of research that COACH again pays attention to the changes of the luxury goods market in recent years.

Jonathan told reporters: "in the global luxury accessories consumption, men's luxury bag consumption accounts for 15%-18% of total luxury goods consumption, while the proportion of Chinese luxury goods business can account for 40% of the total luxury accessories business. That is to say, the consumption of men's luxury accessories is far higher than the global average level, so in China, we feel that the market for men's luxury goods is very potential."

Since the expansion of the men's product line and the concept of mixed sex stores in 2010, the scale of men's business worldwide has reached US $600 million last year, COACH.

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< p > Jonathan added: "no matter in other markets or in China, we are making further efforts to expand men's business."

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It is not hard to find a shop that visits P COACH. A year ago, the brand handbag of the brand changed significantly. The design of the beautiful color and the de logo design had already sounded the horn of COACH pformation.

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In September this year, COACH formally launched its shoes to the market. Together with Chinese fashion photographer Chen man, he photographed a large piece of shoes for COACH and exhibited it in Shanghai not long ago. P

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< p > the shoes launched in China have been studied for the foot shape of Chinese consumers. Shoe shaped, shoe last design and comfort design have been developed to develop shoes suitable for Asian feet.

It is reported that since September, COACH launched a new shoe product in the retail store, as of press release day, its style has reached 100.

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< p > Jonathan stressed: "this change has appeared in the North American market. We used to focus on handbag accessories as the main body, but now we have begun to pform COACH into a lifestyle accessory brand."

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Besides P, COACH is also trying to make clothes. In the latest quarter's global advertising, China's supermodel Liu Wen is wearing a New York style Coach from its coat, sweater to leather trousers and inside and outside.

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< p > despite the fact that COACH has a long history of launching its own product line, COACH has not been able to spend much time in ready-made clothes.

Jonathan revealed: "from November to December, COACH will also introduce new products that you feel fresh from head to toe in selected shops."

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< p > rich product line is conducive to the comprehensive pformation of COACH, but should we disperse our energy into many fields, and COACH will eat it? Jonathan understands China's idiom "priorities".

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< p > he replied: "through a lot of market research, we know that besides handbags, if there are shoes, clothing and other products, our customers also have a high purchase intention.

They are more willing to see a complete image from head to toe.

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< p > but first we must stick to our strengths. COACH itself is a fashionable handbag and accessories brand.

So handbag leather goods, clothing design, supervision of manufacturing processes and quality, marketing and distribution are all done by themselves.

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< p > and relative income accounts for a smaller category of shoes, perfume, watches, sunglasses and other products. We seek to cooperate with professional companies in this field.

COACH actively participates in the design process of COACH brand and controls product marketing, promotion and distribution.

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< p > for example, COACH's franchise partners Jimlar and Luxottica have rich experience and professional research on the design, functionality and comfort of shoes and glasses respectively.

At the same time, franchised partners can distribute products through department stores and specialty glasses retailers after COACH approval, bringing additional exposure to COACH brands.

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< p > < strong > multi distribution channel operation < /strong > < /p >

< p > < strong > < a > href= > http://www.91se91.com/news/index_c.asp > > strong > digital marketing < /strong > /a > Start > /strong > /p >

The distribution channels of < p > COACH are not the same as those of traditional European brands. They set up shops as flagship stores, or store stores in department stores, or open outlets and online sales platforms at high-end outlets.

"Our strategy is to create a multi-channel distribution system, which will be more flexible than traditional European brands and will have a larger sales network."

Jonathan explains.

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< p > < --EndFragment-- > in many distribution channels, the establishment of the electricity supplier has also caused a heated debate in the luxury circle.

At the end of 2012, China's official online shopping mall was launched on COACH for several days.

The online flagship store includes COACH's full range of products. Besides, online shopping products will enjoy the same warranty and after-sales service as the physical stores.

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< p > Jonathan said: "the consumption group of online shopping is increasing day by day, so for COACH, it is not about whether to do e-commerce, but when to do it."

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< p > facing the query that "luxury goods will be reduced by electronic commerce", Jonathan said: "on the website of COACH, whether it is merchandising or pricing, it must be consistent with the entity store. This is the most basic requirement that we stick to.

Our online sales are proceeding in an orderly manner and are very consistent with our expectations. "

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< p > it is reported that last year, the number of visitors to the website exceeded 12 million, and the total traffic volume of the official website increased by more than 50% after the introduction of e-commerce services.

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< p > COACH also clearly realizes that the ratio of luxury brands to e-commerce on the Internet is relatively small. It is just beginning. The greater significance lies in its coverage. COACH's physical stores have already covered 49 cities in China, but COACH has been shipped to over 200 cities in China.

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Besides P, COACH regards the electronic platform as its sales opportunity, and it also means the opportunity of marketing.

Jonathan told reporters: "if COACH's website does not conduct e-commerce pactions, then it is a pure and one-way brand information to provide a website."

Today, COACH has added online sales to its website, and the number of "new to merchandise" page views has increased by more than 50%.

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< p > < strong > the content of "20%" accessories in China is less than /strong > /p >

< p > COACH has been entering the Chinese market through agency channels for 15 years.

In 2008, the world's flagship store was first opened in Queen's road, Hongkong. In September of the same year, it bought the retail business of Hongkong and Macao from the dealer Junsi group and completed the first phase of the buyback plan.

In April of next year, COACH completed the buyback of retail business in mainland China.

Since then, COACH has been in the Greater China region.

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< p > Jonathan will be likened to the development of China as "building blocks".

First, store construction. As of the end of September 2013, the number of COACH shops in China has reached 132.

In the past two years, COACH has expanded at an alarming rate of 30 new stores a year.

Most of them will be located in the high potential consumer market or densely populated cities in the mainland of China.

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The upstream flow of P COACH is reminiscent of the fact that some brands have publicly indicated that they will slow down the pace of development in China, or even stop the expansion.

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< p > Jonathan said frankly: "in the future, we may not be able to maintain 30 new stores every year, but with the growth of the middle class in China, China will still have unlimited opportunities for us in the next ten years.

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At present, we have opened physical stores in 49 cities in China, but we find that there are at least 200 cities in China with a population of more than 1 million. Maybe they haven't prepared for COACH yet, but two or three years later, luxury brands like COACH may be able to try P.

All in all, our strategy is to catch up with the development of the Chinese market.

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According to the survey of < p > < a href= "http://www.91se91.com/news/index_c.asp" > COACH < /a >, the Chinese market accounts for 13% of the global luxury accessory Market in fiscal year 2013. It is estimated that in the 2018 fiscal year, the proportion of China's luxury accessory market will be close to 20%.

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< p > in the face of the huge market share of "20%", COACH naturally wants to share a share.

"China's strategy will also follow global decisions such as developing men's goods and promoting brand pformation," Jonathan said.

In China, COACH will not only be positioned as a handbag brand, but rather a new image to consumers.

In addition, it is to further develop digital strategy.

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< p > when the two Chinese words "micro-blog" and "WeChat" blurt out from the Jonathan mouth, the slightly accented pronunciation makes people feel "humorous".

At present, COACH has nearly 850 thousand fans on Sina micro-blog, and they have also opened WeChat platform.

Of course, in the process of building blocks, in addition to the construction of hardware facilities, the standard COACH for quality service still adheres to the "one to one" service.

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< p > according to the financial report, sales of COACH in fiscal year 2013 increased from $4 billion 760 million last year to $5 billion 80 million.

Sales in the Chinese market increased by 40% to about 430 million US dollars, accounting for 12% of global sales.

The company expects sales in the Chinese market to reach US $530 million in fiscal year 2014, and strive to further advance the current 10% market share.

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