Kate Spade Wants To Emulate Ralph Lauren To Create $4 Billion Sales

< p > handbag manufacturer Kate Spade is imitating the Ralph Lauren Kingdom: a brand that sells almost everything from clothing to household products, with a sales volume of 4 US dollars - 4 billion US dollars.

Kate Spade's CEO Leavitt focuses on truly attractive products perfume, jewellery, watches, sunglasses, and sets up price points at the same time attracting rich people and luxury customers at different levels.

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< p > "Ralph Lauren is an example for our industry," Leavitt said. As a former Lauren deputy, he is 53 years old. He joined Kate Spade in 2008 and became CEO of his parent company last month.

"We are confident that we can achieve our goals."

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< p > this is a bold goal for a brand with only 1/8 Ralph Lauren group. Compared with the earnings of Ralph Lauren in the fourth quarter, the sales of Kate Spade75% came from the United States, and was known for its beloved handbag by city women.

However, Kate Spade lacks the founder of the same name, which makes it impossible to have the brand image spokesperson who can make Gatsby's luxury lifestyle best interpreted like Ralph Lauren.

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< p > even if faced with challenges, investors are still very optimistic about Kate Spade.

In the past 12 months, stocks have risen 92%, more than their rivals and Wall Street darling Michael Kors.

Eric Beder, an analyst at Brean Capital LLC in New York, argued that the stock price was disputed and dropped its stock rating to "medium" one month.

In February 26th, he wrote, investors may be "very disappointed".

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< p > < strong > the color of vitality < /strong > /p >

< p > Kate Spade has changed from a niche brand to a mainstream brand in the past twenty years.

In 1993, Kate Spade was founded by Ms. Kate Spade and her husband, Andy, who won a small group of followers with the vitality of the handbag and the classic lines.

But Kate Spade lost its shine after buying most of its control rights by Neiman Marcus Group LLC in 1999.

Liz Claiborne Inc. fully purchased Kate Spade in 2006 for $124 million, including the remaining part of the Spades family.

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< p > at that time, Liz Claiborne owns 30 clothing brands, including Juicy Couture and Lucky Brands.

In the past few years, most of the brands have been abandoned or closed down.

Three years ago, the company sold Liz Claiborne to J.C. Penney Co., then renamed Fifth & Pacific Cos.

Last year, when the company decided to focus its efforts on Kate Spade, Fifth & Pacific sold Juicy Couture's intellectual property rights to Authentic Brands Group LLC, while Lucky was sold to Group & amp;

Only the jewelry brands of Kate Spade and Adelington design team were left behind.

Last month, the holding company was renamed Kate Spade & Co.

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< p > < strong > the pace of expansion < /strong > /p >

After P Burberry revived the Burberry Group PLC brand name, the creative Deborah Lloyd joined Kate Spade in 2006, updated the handbag style and extended the product chain to other categories, including jewelry and clothing.

Last year, the secondary brand Kate Spade Saturday for young women was launched, and the price was only half that of the core brand Kate Spade.

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< p > perfume "Twirl" and "Live Colorfully" were released in 2010 and 2013.

Swimmers and linen tablecloths will be registered this year.

Later, shoes, sunglasses, panty hose, electronics, bedding and stationery will be launched.

Bloomberg information shows that in the past 13 quarters, Kate Spade's same store sales increased at least by 21%.

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P Jenny, 31 years old interior decorator and event organizer Morrissey Morrissey, received her mother's first Kate Spade bag from her mother, and witnessed the development of the brand.

She thinks the bags are fashionable and classic, and a href= "http://www.91se91.com/news/index_c.asp", skirts, /a, shoes, jewellery and porcelain are also inexpensive.

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< p > strong > fashionable style < /strong > < /p >.

< p > < < a href= > http://www.91se91.com/news/index_c.asp > > Kate Spade < /a > the brand has gone up a notch, its style is more and more fashionable, "said Morrissey, who lives in Xingang beach, California.

"They will grow into a brand of life.

Everything they did is very good. They should continue to work hard. "

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< p > last month when Leavitt was interviewed, he made plans for the company.

He plans to increase the international sales of less than 25% of total sales to 2/3, and aim at more opportunities in the Asian market.

To boost sales growth, he plans to open new stores and stimulate online sales of 20% of the brand's revenue.

He said retail sales will reach 2 billion in 2016.

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< p > he said: "encouraging customers to pursue a more interesting life -- this DNA resonates with global customers.

Because everyone tries to spend more time visiting museums, exploring strange corners of the world, or flea markets to find unique products to decorate their homes.

Our brand conveys optimism and happiness.

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< p > < strong > more a href= "http://www.91se91.com/news/index_c.asp" > channel < --EndFragment--! < /a > /strong >

Ned Davis, an analyst at William Smith&Co. in Denver, agrees that the valuation of stocks is appropriate. He expects stock prices to rise to $43 in 12 months.

Yesterday's stock price was $35.5.

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< p > despite the strong support from customers, Kate Spate still works hard at the premium per share, making their products cheaper than designer products, but they are more expensive than the products of the hypermarket, and compete against many brands in the price war.

But the retail environment which is not optimistic has a bad effect on Kate Spade.

Kate Spade announced that the same store sales growth will slow down this year, reaching a maximum of 13%, which is half the original.

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Pam Quintiliano, an analyst at P Suntrust Banks Inc. in New York, said: "the rise of Kate Spade share price is not due to the harsh retail environment or the narrower product category."

She rated the stock as "advanced" and shares were rated as "medium".

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< p > strong > ambitious ambition < /strong > /p >

Marie Driscoll, the founder of < p > Driscoll Advisors, thinks: "the ambition of Leavitt is too large, which will make it difficult to resist Ralph Lauren, Michael Kors, Coach, and Michael.

Building and becoming a strong life brand is the key to success in a supersaturated retail environment.

Kate Spade still has many shortcomings compared with his example. He has not adjusted his commodity category like a life brand.

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< p > "the brand still has a long way to go," she said.

"Ralph Lauren has created the concept of brand life.

When you wear Ralph Lauren, it's like saying, "I am an upper middle class in the United States."

Kate Spade is an element of hypocritical, youthful and playful.

When you wear Kate Spade, you say, "I wear Kate Spade."

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