Coach'S Sales In China Increased By 25%, Thanks To Luxury.

< p > although there is a great difference in price between the luxury brands from Europe, such as GUCCI, LV and PRADA, a href= "http://www.91se91.com/news/index_c.asp", the Chinese market /a and COACH will never give up the chance to compete with them.

At the moment when the first-rate luxury brands were affected by China's "three restrictions" consumption policy, the COACH slowed down.

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< p > January 22nd evening, COACH announced the 2014 quarter of fiscal year second quarter earnings report, as of December 28, 2013, the company's total sales in North America dropped 9%, China's sales growth of 25%.

"We are very satisfied with the sales situation in the Chinese market."

COACH chief executive VictorLuis (Victor Luis) has previously said publicly.

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< p > but such performance has been seen by Zhou Ting, Dean of the Institute of wealth and quality, thanks to COACH's "extravagance".

"With Chinese consumers' understanding of luxury goods becoming clearer, COACH today can only embrace Chinese consumers in an all-round way and face the mass market."

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< p > < strong > < a > href= < http://www.91se91.com/news/index_c.asp > COACH < /a > new opportunities < /strong > /p >

< p > Prada has announced its third quarter earnings report ending October 2013, showing that net sales growth has been the worst 7.9% since the listing.

In the three quarter of 2013, 10~12, the second largest luxury group in the world, pointed out that mainland China is the only market with shrinking sales in the Asia Pacific region.

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< p > > Bain's consulting firm released a 2013 "China a href=" http://www.91se91.com/news/index_c.asp "luxury goods < /a > Market Research Report", which showed that the growth rate of the luxury market in mainland China in 2013 was further slowed down, with an annual growth rate of about 2%.

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< p > however, COACH, once dismissed by fashion people as "pseudo luxury", does not seem to be affected by this cold spell.

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To a certain extent, the performance of < p > is attributable to the brand positioning of COACH.

Around 2000, COACH put forward the concept of "AccessibleLuxury".

Contrary to the concept of "easy to handle" and "luxury", COACH says it wants to catch the psychology of luxury consumers who want to have the ability to spend money, or spend a small amount of money to find a big deal.

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< p > in the fiscal quarter ending December 28, 2013, COACH's net profit was 297 million US dollars, down 16% compared to 353 million US dollars in the same period last fiscal year.

But sales from the Chinese market grew by 25% over the same period last year, while the same store sales grew by two digits.

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< p > and in Zhou Ting's view, the overall brand of COACH is "going to luxury".

Over the past year, COACH has further promoted sales growth through product diversification.

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< p > < strong > new fashion brand shock < /strong > < /p >

< p > compared with the strong momentum of the Chinese market, COACH's performance in the North American region this time is inferior.

In the second quarter, sales in North America dropped 9% to 983 million US dollars from US $1 billion 80 million in the same period last year, while direct sales fell 8% compared with the same period last year, while same store sales fell 13.6% over the same period last year.

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In this regard, COACH CEO VictorLuis is unable to conceal the disappointment of North American business, saying that it is greatly reduced by the number of shoppers' customers, and that the company's restrictions on customers' participation in direct sale of shop outlets are limited.

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< p > "COACH's performance in the North American market is related to the weakness of the US market as a whole, the lack of consumption power, and the rise of fashion brands in the last one or two years in the United States."

Zhou Ting thinks.

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< p > however, compared with the North American market, it is not easy for COACH to have a good life in China.

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New fashion brands such as MichaelKors and KateSpade, which are impacted by COACH in the US, are expanding rapidly in China at present. P

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< p > industry insiders point out that the next 3~5 years will be the most stressful time for luxury brands to operate in China.

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< p > "the growth of performance in the past 10 years is not the result of these brands, but the result of the blowout of Chinese consumers' desire for consumption.

Now more and more fashion brands, designer brands and high-end customized brands have joined the competition, and the pressure on the internal operation of luxury brands will be greater and greater.

The industry insiders explained.

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