Interpretation Of COACH'S "Brand Pformation" Strategy

Yang Baoyan, President and CEO of COACH China, accepted an interview with reporters. He speculated that the brand promotion would not raise the price in light of the speculation about whether the new strategy of COACH brand would be raised in the future.

Nowadays, domestic consumers are more concerned about the cost performance of products.

"This is a manifestation of maturity, not a crisis, but an opportunity for COACH". He revealed that COACH has the same raw material supply channels as some European luxury goods, and has a first-class quality, superb technology and thoughtful service, but the price is only about 40%-60%.

The relatively friendly price and precise positioning enable COACH to attract more customers and grasp the potential of the rising middle class.

Although China's market environment is at a slower growth stage, China is still the most important and potential overseas market for COACH.

Data show that the overall sales volume of COACH2015 in the first quarter of fiscal year was 1 billion 40 million US dollars, down 10% compared to the same period last year.

But sales in the Chinese market increased by 10%.

"The Chinese market is still very exciting," Yang Baoyan said. China has more than 200 cities with a population of over 1 million, far exceeding that of the United States and Japan, while COACH's awareness of non prompt brands in China is currently only 18%.

While China's middle class continues to grow, the pace of urbanization is accelerating. The potential of China's two or three tier market can not be ignored.

The precise positioning of COACH, which represents the pure New York style, quality craft quality and affinity price, will coincide with the development of this market.

As for the slowdown in growth, this is the "new normal" of the mature market, which represents stability and potential.

"And the Chinese government's views on economic development are the same. Compared to the speed, we pay more attention to the quality of development."

Yang Baoyan commented so.

According to the plan,

In the 2015 fiscal year, it is expected to set up about 60 new retail concept stores around the world and complete the upgrading of about 150 stores.

Among them, 20 new stores will be opened in the mainland of China.

"Not LOGO, but not low".

In recent years, the field has been talking about the trend of "de LOGO". Analysts believe that luxury leather products can only attract consumers to buy enthusiasm only by brand LOGO.

It is revealed that COACH surveys more than 50 thousand consumers worldwide in order to understand their preferences and potential market changes.

The survey shows that in recent years, Chinese consumers have become more rational about the consumption concept of luxury goods, and are no longer enthusiastic about LOGO dominated design. Instead, products with high quality, low profile and unique brand style are more popular nowadays.

However, in the trend of "de LOGO", how to use LOGO elements in fashion brands is still controversial. During the period, some brands tried to change the presentation of LOGO icons and patterns.

"To LOGO, is not LOGO completely on the product, but LOGO can not be used too low."

A staff member of COACH added that some customers reflected that the presentation of the brand LOGO on the bag was necessary. After all, they paid a lot of money to get the product, but only needed more fashionable and personalized design, so that the bag decoration could reflect the personal style and taste.

Reporters in the COACH new light world located in the three story of the new concept boutique, the new leather goods are colorful, mainly fluorescent, the classic carriage LOGO of the brand is mainly printed on convex concave, it does not interfere with bag color matching, and more obvious.

"Increase investment in Digitalization in the future"

In a list of global luxury brand digital operations, COACH ranked first, before GUCCI, Burberry and other brands.

Digital strategy is also one of COACH's four global strategies.

At present, COACH has adopted social media platforms such as Twitter, YouTube and Facebook to enhance interaction with global consumers and enhance consumer awareness.

It is understood that the official micro-blog account of China's COACH has about 1 million 500 thousand fans, and the official WeChat account was opened in 2012.

According to Yang Baoyan, since November 12, 2014, COACH has officially launched a micro shop on WeChat platform. Consumers can browse, search and purchase COACH products through the official WeChat of COACH.

He said that as early as the end of 2012, the COACH online store received orders from more than 300 cities in China, far exceeding the COACH's coverage in 55 cities.

Yang Baoyan said that the reason why he chose to operate the e-business platform is to hope that customers can enjoy a good experience in any channel and directly communicate with them.

Reporters noted that on January 6th, the official WeChat of COACH's new concept store opened more than 73 thousand.

Not long ago, the official WeChat reading of Angelababy Christmas handbags was nearly 100 thousand.

Yang Baoyan revealed that COACH will continue to increase investment in the field of digital marketing in China.