COACH Encountered Cold Winter Plan Pformation Net Profit Fell Sharply

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P, the chief executive of COACH, the largest handbag manufacturer in the United States, has not had a good year in Victor Luis.

COACH's latest annual report as of June 28, 2014 shows a net profit of 781 million 300 thousand US dollars, down two figures, compared with 1 billion 34 million 400 thousand US dollars in the same period last year.

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< p > Victor Luis is looking forward to the coming of September. Stuart Vevers, the creative director excavated from the Spanish luxury leather brand Loewe, will release new products in a few days' time.

What follows is the change in positioning and design.

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< p > it reminds people of the change of COACH in the 90s of last century. This change made COACH reach the peak of history in 2005~2006.

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< p > observers expect the famous "light luxury" brand to be positioned once again to become a popular brand, but they may be disappointed.

COACH insiders confirm that "First Financial Daily" confirms that COACH will become a "modern luxury" brand that corresponds to "traditional luxury".

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< p > in the difficult time of earnings and profits continue to decline, can the pformation of COACH turn the corner? < /p >

< p > < strong > reduce discount < /strong > < /p >

Sales in North America, which accounted for 70% of COACH business, decreased by 11% to 3 billion 100 million US dollars from US $3 billion 480 million in the same period last year, while same store sales decreased by 15% over the same period last year (P).

COACH expects sales in North America will continue to shrink significantly in the 2015 fiscal year ending June 2015.

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< p > "in primary markets like China, in a mature market such as North America, consumers now prefer more fashionable and personalized fashion brands or" a target= "_blank" href= "http://www.91se91.com/" designer /a ", which creates great market share and performance pressure on COACH.

Zhou Ting, President of the Institute of wealth and quality analysis.

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Take P COACH Michael Kors, the competitor of COACH, as of the first quarter of fiscal year 2015, benefiting from an increase of 24.2% in the same store sales, the retail revenue increased by 47.5% to 480 million 200 thousand US dollars, with a net profit of 187 million 700 thousand US dollars, an increase of 50.2% over the 125 million US dollars in the same period last year.

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Less than P, COACH is only one of the reasons why it is going down.

Excessive distribution in Oteri J is considered another important reason for COACH getting into trouble.

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< p > during the peak period, outlets accounted for 65%~70% of COACH sales.

In contrast, Michael Kors has been criticized for so much, but its sales in outlets are only 30%.

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< p > "at first, the COACH outlets saved help to increase sales and profits, but it soon puzzled consumers: no one knew that a COACH bag came from the first grade genuine brand of COACH store, or the" two goods "from outlets.

Although there are many videos on the Internet to tell how to distinguish between them, it is not easy for ordinary consumers to identify them.

Paris HEC business school MBA project luxury marketing and strategy professor Vincent Bastien to the first financial daily analysis, the result is too many outlets stores hurt the brand sales network.

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< p > corresponding to revenues and profits, COACH shares fell 39% from the end of June to the end of this year.

Vincent Bastien said: "luxury strategy gives the brand a high value, which is also reflected in the stock price.

As people realize that you are not (or no longer) a luxury brand, share prices will fall sharply.

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In June this year, P COACH also said that it would close some online outlets and some outlets, so as to enhance the store's shopping experience and reduce discounts.

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< p > < strong > "modern luxury" < /strong > /p >

< p > a great store movement took place in North America, and 70 COACH outlets closed.

At the same time, it is to reorganize the global store network and inventory.

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< p > COACH was forced to go to the corner to start pformation.

COACH starts mapping from location.

From "Accessible Luxury" to "Modern Luxury".

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< p > explaining the positioning of "modern luxury", "a href=" http://www.91se91.com/ "COACH < /a", insiders told reporters that it was not the orientation of the outside interpretation from "light luxury" to "popular fashion brand", but mainly focused on responding to the change of consumer concept, which means more emphasis on product quality, fine handwork, brand purity, originality, confidence and affinity.

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< p > for the new positioning of the "lifestyle brand", COACH's important move is to expand the product line.

Over the past 4 years, sales of COACH men's wear range from $100 million to $700 million, accounting for 14% of the brand's 5 billion dollar performance.

COACH hopes that the existing shop will make more room for men's clothing.

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< p > September this year, the global COACH stores will be listed simultaneously, including boots, sports a target= "_blank" href= "http://www.91se91.com/" > shoes < /a > and so on. The senior vice president of COACH global menswear sales, Greg Unis, introduces the plan to form a complete series.

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The "P" and other measures are also reflected in the change of retail stores that are directly exposed to consumers.

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< p > it seems that COACH is making positive changes. However, it is forced to embark on the road of pformation, positioning from second tier leather goods brands to first-line lifestyle brands, and COACH will undoubtedly face enormous challenges.

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