Coach, A Former Luxury Brand, Fell Back To The Second And Third Tier Brands

Here is the world clothing shoes Hat net's small editor to introduce to you is the former luxury brand coach back to the second and third tier brands.

Coach is not the only luxury brand in an awkward situation. Many "fake luxury goods" who have entered China rely on high positioning and pricing to survive. As a result, the positioning deviation of "pseudo luxury" is gradually taking shape in the face of Chinese consumers who are more and more expert and know how to consume. The coach, once the "king of 300 dollars in North America", has been having a hard time recently, with the news of declining sales. First, the CEO changed at the beginning of this year, and then the former creative director of Loewe, a luxury leather brand, joined coach in an attempt to inject new energy into the brand to save its declining global performance.

Coach is not the only luxury brand in an awkward situation. Many "fake luxury goods" who have entered China rely on high positioning and pricing to survive. As a result, the positioning deviation of "pseudo luxury" is gradually taking shape in the face of Chinese consumers who are more and more expert and know how to consume.

　 Coach sales fell in double digits

Luxury positioning is embarrassing

　　 Coach The results of recent quarters are indeed not optimistic, with sales of 1.1 billion in the third quarter of the fiscal year ended March 29, 2014, down 7% from $1.19 billion in the same period of the previous year. And the worst was the North American market, which fell in double digits. It is worth noting that this is not the first time that its North American market has declined. The downward trend has been continuing. This is also the reason why coach urgently needs to make major adjustments at this time. So we saw the closure of 70 stores in North America and the restructuring of the global store network.

"When I came back from America in 2010, I brought back a coach's bag in outlets. At that time, because there were too many people, they were all sweating. At last, they could only make sense of it and chose one that could be seen easily. As a result, as soon as she returned home, she was robbed by a customer friend. She took a taxi to my house the first time. As soon as the money was released, she took the bag away. At that time, I was not willing to change hands. " Lina has been running a fashion store for many years, and occasionally acts as a buyer. "That bag is the fastest to sell, about 1200 yuan. If the other party gets the best of it, there are still many latecomers who are crying out for regret. At that time, coach was very popular. "

As shown in the financial report, coach has been booming in the Chinese market in the past two years, but in the downturn in North America, it has failed to stop the overall performance of the company. However, China's prosperity has gradually changed. A large number of consumer groups have changed from the first and second tier cities to the third and fourth tier cities. Under the huge sales volume, the phenomenon of customer turnover can not be ignored. Lina said that nowadays, outlets in the United States still attracts a large number of Chinese people, but her friends have already transferred to other homes, and no one carries it out of the street. They think that coach's logo has lost its value, the classic canvas material is not big enough, and the leather series makes people feel that it is not worth it. In short, the status is very embarrassing. "

　　 Changing the strategy of "opening big stores"

Want to capture young consumers

　　 designer Stuart Vevers is full of confidence after entering the coach. He once said publicly, "I think coach's future is a brand that balances practicality and luxury. Through the interpretation of New York elements, it will create a luxury brand full of American market sense.". And brands do intend to position themselves as "modern luxury" lifestyle brands, and start to move closer to civilian fashion. So does China, because North America's present is likely to be China's future. So they changed their previous strategy of opening stores next to big brands in China, such as withdrawing the new guangtiandi store in Beijing and choosing the younger and more fashionable laofoye department store.

European luxury goods manufacturers are raising the price of handbags to more than 4000 euros, in favor of more high-end markets. Because of the slow development of the market, this gives the opportunity for American fashion brands represented by luxury. Michael kors, for example, had revenue of $917.5 million in the fourth quarter of fiscal year ended May 29, 2014, up 53.6% from $597.2 million a year earlier. Tory burch did well. By contrast, coach is a bit miserable. In fact, originally in the United States, they should have been brands of the same level.

"At that time, the high-end stores opened in China with a crazy image. However, with the gradual maturity of Chinese people's cognition of luxury goods, coupled with the extensive knowledge brought by frequent overseas tourism, coach has indeed come to return to its original source. Otherwise, what else can we do when the third, fourth and fifth tier cities have been excavated? "An industry insider said," in fact, coach's earliest strategy is correct from the perspective of the market, because at that time, China only recognized big brands, and "light luxury" was accepted and became popular in recent years. Michael kors came in late, but its timing and positioning are very consistent. He never associates himself with "luxury". Instead, he grabs the hearts of busy young people in China to respond to their lifestyle. This is also the reason why he is growing rapidly in China today. "