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    Is COACH In The Closing Shop Door, Or Is It A Disaster Caused By Orlies?

    2014/7/6 16:45:00 12

    COACHGuan DianOteri J

    < p > recently, < a href= "http://sjfzxm.com/news/index_f.asp" > American < /a > fashion brand COACH (Coach) is in the shop. It is reported that COACH will close 70 North American stores, while warning that revenues will reach double-digit declines by the end of next June. < /p >
    < p > reporter noticed that many agencies lowered their rating on the stock. In this regard, some consumers believe that COACH was defeated by its own outlets. It is reported that COACH will introduce a transformation plan to restructure the global store network. According to COACH's earnings report, sales in the same year in the 2015 fiscal year decreased by 14%-19% in the same store in North America, including a 24% decline in comparable sales of Web sites. Previously released third quarter data as of March 29th showed that COACH sales in North America fell 18% to 648 million US dollars over the same period. In addition, COACH announced on shareholders' day that total revenue in the 2015 fiscal year will shrink by 11%-13%. < /p >
    < p > > in order to achieve "a href=" http://sjfzxm.com/news/index_f.asp "long term < /a > growth, Coach launched a multi-year transformation plan, including 70 branches in North America, the restructuring of the global network of shops and inventory. COACH expects that about $250 million to $300 million in pre tax expenditure will be reflected in the fourth quarter of the current financial year and the rest in the new fiscal year. < /p >
    < p > "COACH can be said to have been smashed by its own outlets." There are senior consumers who are so critical of the problems facing COACH today. "Many Chinese go to the United States to buy COACH, which seems to be a letter to the United States. There is only one brand in New York's Otter, which is COACH. According to Miss Lee, a consumer who has just returned from the US, "in fact, the price of COACH is divided into two categories, one is the price of Ortles, that is, the special price. Many bags are only about 1000 yuan, which are said to be factory goods. The other kind is sold in the store, the price will be much more expensive, and it will not be so discounted. If the goods in the price store are not very special, they will not sell to the outlets. < /p >
    < p > however, the price differentiation of COACH in the United States has led to many consumers becoming less and less aware of their expensive products in overseas markets. "There were few opportunities to go to the United States before. Now that many people are going, they feel that the domestic COACH price is very expensive. Even in the US, it is more willing to buy the bags of orter, and there is no big difference in design. " Some consumers said so. < /p >
    < p > there are also retail experts who believe that it is difficult to change the positioning and design of a brand by simply closing stores. The current Chinese consumers' pursuit of brands is quite different from that of a few years ago. Whether local or from Europe, more and more light luxury goods will also have a great impact on COACH. If we do not start with product and brand positioning, COACH will hardly occupy larger consumption space in China. < /p >
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