Kate Spade Joined Hands With Korean Clothes And Love Group To Seize The Chinese Market.

< p > with the disclosure of the three quarter earnings report, the performance of big luxury goods is declining. Even luxury executives do not deny that the slow growth of luxury goods will become normalized.

"Growth fatigue" seems to be a consensus among the luxury goods industry. But the luxury industry has suddenly risen, and the industry continues to see with high double-digit growth. Especially in the Chinese market, the "a href=" http://sjfzxm.com/news/index_s.asp Michael Kors /a and Kate Spade bring a ray of dawn to the luxury industry.

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< p > < strong > Michael Kors net profit increased by 49% < /strong > /p >

< p > < strong > < a > href= > http://sjfzxm.com/news/index_s.asp > Kate Spade > /a > increase 76.4 > /strong >% < /p >

< p > recently, the US luxury brand Michael Kors, based in Hongkong, released its second quarter of this fiscal year (7~9 2013).

The chairman and CEO John D. Idol said it was the thirtieth consecutive quarter of Michael Kors's same store sales growth.

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< p > according to the results of the financial report: sales in the quarter amounted to 740 million 300 thousand US dollars, up 38.9% from the same period last year, of which retail business income was 355 million 600 thousand US dollars, an increase of 46.8% compared with the same period last year, and net profit of 145 million 800 thousand US dollars, up 49.1% over the same period last year.

Gross profit margin increased by 1.5 percentage points over the same period, reaching 60.8%.

This is mainly due to 22.9% growth in same store sales and a net increase of 83 new stores in the past year.

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< p > from all regions, the sales of Michael Kors in Europe increased by 101%, and the same store increased by 45%. The sales of its base camp in North America increased by 31%, the same store grew by 21%, and the sales of authorized goods based on watches and glasses increased by 65%.

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< p > although the growth rate of this quarter has slowed down compared with the high growth of last quarter, its expansion rate is still continuing.

As of September 28, 2013, the number of Michael Kors stores in the world was 352 (including department store counters), an increase of 31% compared to the same period last year. In addition, there were 125 franchised outlets.

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< p > belongs to the US Fifth & Pacific group's < a href= "http://sjfzxm.com/news/index_s.asp" > Kate Spade < /a >, which has undoubtedly become the life-saving straw of the whole group. After the sale of the loss Juicy Couture in October, the next step is to consider the sale of the "Juicy" and the strong trend.

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< p > according to the three quarter earnings report, Kate Spade sales increased by 76.4% to 179 million 700 thousand US dollars over the same period last year, including sales of Kate Spade Japan 25 million, and same store sales increased by 31% over the same period last year.

Its CEO William McComb said that the growth momentum of Kate Spade handbags and small pieces of leather was very strong, and targeted young consumers had a high rate of repeat purchase.

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That is, the speed of opening stores in the world in the past one or two years has been very fast, and the total number of shops in the world has reached three digits, because the large number of shops has stimulated the sales performance to grow rapidly. Second, consumers have become inert in the traditional old luxury goods, and they need new brands to meet their needs. Third, the problem of luxury brands themselves is that, with the upgrading of consumption, the core consumers are leaving them, and these new brands are flowing from the loss of consumers of luxury brands. Fourth, these so-called light luxury brands have a high price performance ratio, and the prices will not be as expensive as those of "a href=" http://sjfzxm.com/news/index_s.asp "> luxury" /a ", but the quality is also good, and the design is very fashionable and fashionable. < p >" Kate Spade and Michael Kors have one thing in common.

Zhou Ting, Dean of the Institute of wealth and quality, explains the rapid growth of light luxury brands.

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< p > < strong > accelerating the rush to the Chinese market < /strong > /p >

< p > December 15, 2011, Michael Kors officially landed on the a href= "http://sjfzxm.com/news/index_s.asp" > NYSE < /a >, issuing at a price of US $20, and its share price rose to 81 US dollars as the performance continued to rise.

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< p > before the listing, Michael Kors is a handful of stores in China. There are only one store in Hongkong, Shanghai, Tianjin and Suzhou, and there are only 231 stores in the world.

In early 2012, the Michael Kors group, which was just released soon, announced that it would vigorously expand the Chinese market. "In the next three to five years, we will open 100 branches in this (China) market," John Idol said in a statement, including Beijing, Shanghai, Chengdu, Shenyang and Nanjing.

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In order to better develop the Chinese market, < a href= "http://sjfzxm.com/news/index_c.asp" > Michael Kors < /a > in 2011, Li Dakang was excavated from DIOR to become CEO in Greater China.

After joining the Michael Kors, Li Dakang was fully responsible for the expansion plan of Michael Kors in mainland China, Hongkong, Macao and Taiwan over the next few years.

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< p > as an American brand, Michael Kors accounts for 90% of the North American market, and the market is relatively mature. At present, Michael Kors is gradually pforming the counters in North American department stores into store stores.

This also makes "going out" the key to its next development.

In terms of volume, the capacity of the Chinese market is much larger than that of North America.

So Michael Kors has been working hard in China, including the previous fashion activities in China, and even this year's first real show in Shanghai.

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In order to further win the favor of Chinese consumers, in 2013 Michael Kors autumn and winter show, in addition to inviting the "five golden flowers" of China's modeling industry to take the lead, invited Chinese fashion bloggers and stars to watch the show, and the whole show was broadcast live in China through P.

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< p > of course, apart from China, the emerging market is also the target market of Michael Kors. According to India media, it has entered the India market with India luxury retail companies Genesis Luxury Fashion Pvt. Ltd, and has opened the first store in the country's New Delhi shopping mall DLF Emporio Mall with the franchise mode.

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< p > for the future development, John D. Idol is full of confidence. He said in the earnings report that the global demand for luxury lifestyle brand is still very strong.

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< p > < strong > Kate Spade joint Korean clothing and love < /strong > /p >

< p > < strong > group develops the Chinese market < /strong > /p >

< p > compared with the "a href=" http://sjfzxm.com/news/index_s.asp "COACH" /a "and" Michael Kors ", the Kate Spade has entered the Chinese market very late. In 2012, it began to expand the Chinese market on a large scale.

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< p > Kate Spade is an American brand with red handbags and shoes. At present, there are 41 stores in the United States, flagship stores in Brazil and London, and more than 400 outlets worldwide.

Although popular in the Asian market, the expansion has been limited.

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In order to expand its business in Asia, especially in the Chinese market, in June 2011, Kate Spade and Kate Spade China, a joint venture company with Korea's clothing and love group, were responsible for the operation of the mainland market, and the joint venture period was initially set at 10 years. P

Since 2001, Kate Spade's mainland and Southeast Asian businesses have been sole agents through Goballuxe (Ying Wan Trading Company). According to the agreement, Kate Spade reclaimed the distribution rights in mainland China and Southeast Asia in 2011 and 2014 respectively.

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< p > in September this year, in order to further develop Asian business, < a href= "http://sjfzxm.com/news/index_c.asp" > Kate Spade < /a > set up Asia Pacific headquarters in Hongkong, leading Asian regional business (except Japan), its business scope includes: Mainland China, Hong Kong, Macao, Korea, Philippines, Australia, Singapore, Malaysia, Indonesia and Thailand, and Joe Wong (Steve Wong) from Hongkong luxury goods department Harvey Nichols, responsible for Asia business, as senior vice president of Asia Asia.

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< p > it is reported that Joe Wong has nearly 30 years experience in the Asia Pacific Luxury Retailing industry, and has served as an executive at the lac group. It was president of GUCCI Greater China from 2006 to 2012.

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< p > now it seems that waiting for Kate Spade is expanding in the Chinese market. The group said that in the 2013 to 2014 years, Kate Spade plans to open more than 20 boutiques in the mainland of China.

Up to now, Kate Spade has opened 17 stores in Beijing, Shanghai, Shenyang, Suzhou, Wuxi and other cities, and the completion of the target is just around the corner.

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< p > on the product line, Kate Spade is becoming more and more diversified. In May this year, the perfume series was launched.

Craig Leavitt, chief executive of Kate Spade, said perfume is very important for the development of Kate Spade, because the brand's goal is to become a full range of lifestyle brands covering garments, watches, jewelry and stockings.

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< p > for a fashionable young girl as the main consumer brand, Kate Spade is more receptive to new things in marketing.

In June this year, eBay, the largest e-commerce trading platform in the United States, launched a "shopping window" for Kate Spade, selling 30 new products, namely, "a href=" http://sjfzxm.com/news/index_c.asp "Kate" Spade Saturday, "Kate", "young fashion brand", launched by Kate Spade.

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< p > reporter observed < /p >.

< p > < strong > light extravagance is good when the road is long, and /strong is no longer /p.

< p > the brilliant performance of the light luxury brand makes the fashion circle shout "< a href=" http://sjfzxm.com/news/index_c.asp > light luxury road < /a >, but whether this high-speed expansion and high-speed growth can continue is unknown, but maybe we can snoop the one or two from the development of the lightweight luxury originator COACH.

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After a series of rapid growth, COACH also showed a weak trend of growth. < p >

According to the first quarter earnings report of COACH 2014 fiscal year, sales amounted to US $1 billion 150 million, down 1% compared with the same period last year, and operating income also decreased by 3% compared to the same period last year.

The North American market, driven by the strength of Michael Kors, has been slowing down recently. The total sales volume decreased by 1% to 778 million US dollars from 784 million US dollars in the same period last year, while the same store sales decreased by 6.8% compared with the same period last year. However, the Chinese market continued its strong performance in the last quarter, representing a growth of 35% over the same period.

The COACH way to save the market is to force men and footwear products to pform lifestyle brands.

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< p > Michael Kors seems to foresee future development bottlenecks, as current growth also shows signs of sluggish growth, which is slowing down significantly compared with the performance of nearly two times net profit growth in the fourth quarter of March 30th.

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< p > so there is news that Michael Kors may increase the category of beauty products, and then a whole range of products such as cosmetics, skin care products and perfume will be launched.

And according to Estee Lauder's global senior vice president, Michael Kors's beauty products will be sold exclusively in the 660 stores of Macys in the US Department store for a year, while the global retail outlets are independent retail outlets of Michael Kors.

Market participants expect that the global retail sales of Michael Kors's beauty products will reach US $80 million or more in the first year.

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< p > compared with the luxury brand that entered China more than 10 years ago, the development of new luxury and light luxury will enter China faster, which means that the time from light to rapid growth to weak growth will be shorter.

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< p > Zhou Ting believes that the Growth Logic of old luxury goods and light luxury goods is different: "the old luxury brands can grow rapidly, thanks to the strong consumer demand for luxury goods, and promote the development of these brands.

It is not that they make the brand to succeed, but the market gives them this achievement.

But these extravagant brands take the initiative to do the market. They start shop in large numbers and do the market very actively.

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< p > Zhou Ting is not optimistic about the future development of < a href= "http://sjfzxm.com/news/index_c.asp" > light luxury "/a". First, the rapid growth of light luxury now stems from the result of a large number of shops opening up, and even more than 70 stores can be opened in a year.

Two, compared with luxury luxury goods, the consumer stickiness of light luxury goods is lower. Consumers like Kate Spade today. They may like Michael Kors tomorrow, and they do not have continuity.

Luxury brands will maintain core customers, but light luxury brands will not protect customers. They are on the road of fashion with the concept of light luxury, and need more consumers and more sales.

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< p > "I think that the present scenery does not represent the future, but is going forward, the greater the pressure of the market.

But the market capacity will expand, and the competition among brands will become more and more intense, because more and more designer brands and fashion brands enter this field to compete and divide the market share.

Zhou Ting told reporters this.

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