Luxury Brand Coach Sales Decline To Play "New York Card" To Revive Life Difficult

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< p > Coach decided to extend its successful experience in China to the whole world.

In this new context, "a href=" http://sjfzxm.com/news/index_s.asp "New York fashion < /a" or a gold lettered signboard? < /p >

< p > if you have just been to the Coach store recently, you will find this brand very different.

For example, some of its store entrance is divided into two channels: men and women, and it is no longer a handbag but a ready-made garment. In the latest season of Madison series handbags, Coach's Logo is infinitely reduced and hidden in a very fine Phnom Penh. In the past, the classic knapsack covered with "C" is almost nowhere to be seen.

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< p > and in the store of Shanghai Hongkong square, which has just been renovated by Coach, the handbag shelf has been pformed into a whole shoe wall, which shows the brand's dozens of new products of spring and summer shoes.

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< p > Coach is trying to pform from a second line leather brand to a first-line fashion lifestyle a href= "http://sjfzxm.com/news/index_s.asp" > brand < /a >.

This way of life has been condensed into two simple words by Coach: New York.

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In P, October 2013, Coach launched a series of high-end handbags named Borough, which is named after New York.

Its shape is simple and atmospheric. Each bag has three large, medium and trumpet sizes. The most expensive one is nearly $1200.

After that, the Coach flagship store in Manhattan also underwent a major renovation. Apart from opening up the exhibition area for men, it also used a brand new color matching and high-grade decorative materials of wood and cortex to make itself look more like a flagship store of fashion.

More renovation programs for North American stores are still in progress.

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< p > a series of advertising videos with the theme of New York story has been accompanied by the launch of a new round of product and store pformation of Coach.

The main characters in the commercials include Rick, Michael Mast, a brother of Broolyn, a famous chocolate shop in New York. He found his Danish celebrity model Freja Beha Erichsen in New York, and Charlie Charlie Anderson, etc.

They are wearing Coach's full line products to tell the story of themselves and the city of New York.

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< p > but they have not forgotten to curry favor with Chinese consumers in this advertisement.

China's supermodel Liu Wen and Lee Hom appeared as the two rare Asian faces.

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< p > "compared to the traditional European a href=" http://sjfzxm.com/news/index_s.asp "luxury brand" /a ", we hope to become another consumer choice.

I think the positioning of New York fashion is very special, and is very compatible with Coach. "

Jonathan Seliger, President and chief executive officer of Coach China, told the first financial weekly.

In his view, New York fashion means "less exclusiveness, more inclusiveness, and more emphasis on connotations."

It is very dynamic, open and can be expressed in a variety of ways. This is the style of New York city.

That's what we want Coach to be. "

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< p > this is not only because New York is the birthplace of brand.

Compared to Paris, Milan and London, New York is a new fashion capital.

This sense of distance is exactly what Coach needs.

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< p > Coach represents a completely different thinking mode from European luxury brands.

European brands have always been steadfast in defending their nobility and exclusiveness.

In addition to pricing and retail experience, this is also reflected in their taboo labels made in China, even though they are sourcing hardware raw materials such as zippers from China, and outsourcing some of their production to Chinese factories.

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Compared with P, Coach is much more flexible.

As soon as they were listed in 2001, they moved their production from the us to China and other Asian countries to cope with greater demand at lower cost and began launching new products every month.

In addition to retail channels, Coach started selling goods through e-commerce platforms.

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< p > Coach is the advantage of playing New York brand in the Chinese market.

In China, it has been introduced to consumers from the very beginning of the image of New York's top fashion brand.

One of the reasons is that when Coach decided to open the first two storey flagship store on the ground floor of Hongkong Plaza in Shanghai in 2009, it took a completely different market position from North America.

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< p > "in China, our initial position is a fashion brand in New York. Fashion and lifestyle are part of the positioning."

Seliger said.

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< p > all Coach stores in China are on the same level as the first tier luxury brands.

According to Morgan Stanley analyst Kimberly Greenberger, 2/3 of Coach's sales in the North American market are from Oteri J.

When Coach began its diversification attempt in 2010, its new store in China always showed the most complete product line, unlike some restricted North American stores that could not accommodate different categories.

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< p > now, Coach hopes to learn from its successful experience in China in the past 5 years in the global market including North America.

At the end of 2013, when Coach CEO's Lew Frankfort retired, she also picked up a new successor Victor Luis for Coach to continue her plan to pform Coach into a global fashion lifestyle brand with accessories as the core.

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< p > Victor Luis has been a CEO in Japan, and later was responsible for the company's overseas expansion. In 2009, Coach recovered the agents in the Chinese market and started the strategic pformation of direct marketing under the guidance of him.

During his tenure, Coach opened 122 stores in 51 cities in mainland China in just 5 years.

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< p > "the United States has a natural affinity to Chinese consumers.

Emphasize your New York identity and let it have more potential.

Citibank analyst Oliver Chen said on the first financial weekly.

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< p > but in those places that have a better understanding of the history of Coach brand, the appeal of "New York fashion" may be discounted, especially for the North American market, which is more familiar with New York, which has a sense of distance. It is not easy to change the impression of consumers.

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< p > in the United States, Coach was originally a leather handbag family workshop serving housewives in the outskirts of New York.

CEO Lew Frankfort, who took office in 1996, decided to pform Coach. He invited Reed Krakoff, the first creative director from Tommy Hilfiger, and positioned it as a "affordable luxury", competing directly with Prada and LV, but less than half of their price.

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< p > this strategy enabled Coach to get a quick success and to go public in 2001. In fiscal year 2013, Coach's sales amounted to $5 billion.

But at the same time, its image is more related to cost-effective rather than fashion.

It is the more than 900 Ott Leslie discount store in the world, and now it becomes the burden of rushing to upgrade its brand.

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"P", "although the company has expanded the sales opportunities of Coach, it is not consistent with the direction it is striving to improve its brand value."

Greenberger said.

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< p > in order to reverse this stereotype, in the past 4 years, Coach has done enough to dig people in fashion circles, and changed from men's clothing, women's clothing to creative director to achieve the goal of enriching product lines and enhancing fashion sense.

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In P, 2010, it came to Jeffrey Uhl from Converse to start the development of men's series. After 3 years, the zero start Department broke through the annual sales of $600 million.

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< p > then, it also dug up the women's dress designer Sandra Hill from Paul Smith to develop women's clothing products. Before that, there were only a few women's fur coats on the clothes rack of the Coach store.

In order to expand the footwear product line authorized by Jimlar, Coach has specifically hired a vice president for authorized business.

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< p > the most popular sensation in fashion circles is a personnel appointment of Coach a few months ago.

In February 2014, Coach dug up creative director Stuart Vevers from Spanish luxury brand Loewe.

Vevers just caught up with history when he took office. In 2014, Coach first boarded the T stage of New York fashion week.

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< p > "we are upgrading our products through new design, making Coach cooler, more advanced and more urban. Ultimately, we will have the opportunity to expand the market at a higher price and raise our average retail price."

Selige said.

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< p > Coach has actually arrived at the time of pformation.

In the last two years, the sales growth of Coach has dropped significantly. In the last three quarters, there has been a continuous decline in sales in the North American market.

Sales of Michael Kors listed in 2011 increased by 28% in the latest quarter.

In an interview with CNBC, Frankfort said, "Coach is slow to respond to market competition and competitors are doing very well."

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Such competitors as P, Michael Kors, Kate Spade and Tory Burch have largely adopted the same strategy as Coach: Pricing for people and selling multichannel.

They are more dazzling than Coach, because they are richer in product lines, from garments to handbags and accessories, so that they can always appear in New York fashion week and the pages of major fashion magazines in a more youthful and stylish manner.

By contrast, Coach now looks senile.

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< p > Victor Luis says the pformation of Coach will be a "multi-year journey".

It takes time to redesign new products, retail experience and marketing strategies, and it takes time for customers to accept a brand pformation.

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< p > on the handbag blog Purseblog, a reader named Marina Harbor commented on the Borough series, "nice bag, but I won't spend more than 1000 dollars on a Coach bag."

Another netizen, Babs, is more relentless. "Some brands can attract thousands of dollars, but some are not."

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Compared with P, feedback from fashion circles is much more active.

This is also the reason why Coach has hired Stuart Vevers at high price and boarded fashion week. The fashion effect has made fashion editors and bloggers pay attention to Coach and let stars wear Coach.

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< p > British Fashion Critic Nick Remsen wrote in writing for VOGUE. Stuart Vevers is clearly a challenging, intelligent and business minded person who reinvigorate and relocate Coach at the show of New York fashion week.

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< p > "you will want to wear Vevers clothes, take his < a href=" http://sjfzxm.com/news/index_s.asp "handbag < /a >, wear his shoes."

Nick Remsen wrote.

The New York Times also made this show one of the three most noteworthy performances of New York fashion week in 2014.

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P, a fashion blogger named Samantha M, said, "since then, Coach has never been bought since high school, but now it may change its mind."

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