Coach Starts A New Road To End Violence

With the frequent exposure of the cost of luxury fabrics and labor, consumers are increasingly aware of their value structure. As for the cost of brand value and Star Marketing in the past, it is more and more difficult for the new generation of consumers to pay the bill.

Coach, an old US high-end fashion brand, is facing unprecedented pressure of transformation. After announcing the three quarter results of almost all the fall in the last fiscal year, Coach announced the completion of its acquisition of Stuart Weitzman, a clothing and footwear brand in Spain. A series of brand transformation strategies that do not seek short-term profits can take the road of redemption. The answer will be given by the market.

In the case of not being optimistic, Coach group recently announced the completion of the acquisition of Spanish high-end women's clothing and footwear brand Stuart Weitzman.

The Spanish brand Stuart Weitzman 2014 has a revenue of $313 million in the fiscal year, with 45 stores in the United States and 62 stores in the international market. The brand has two stores in The Peninsula Hotel, Beijing, and at the same time, it also enters the sales of Lac Crawford. The brand price ranges from 700-7000 yuan, and the new price is mostly 3000-4000 yuan. The acquisition cost a lot of money and spent $530 million. The move also confirms the brand transformation strategy announced by Coach at the investor conference last June, taking into account handbags and accessories while developing "modern luxury" brand as an integrated garment and shoes.

In the Coach previously announced plan, the 2015 fiscal year will cost 250 million -3 billion for restructuring and transformation. At the beginning of this year, in the Beijing SKP store, which was renovated after the Coach transformation, the previous single bag container was separated by rich men's and women's clothing, clothing, Shoe shoe The replacement of bags, containers, and sofa and tea table areas presents a change in the concept of lifestyle.

Coach is no exception, the three quarter of fiscal year. Net profit A sharp fall of 53.8% over the same period, operating income fell 44.5% over the same period, with a slight increase of 3% in sales and a 14.9% decrease in gross profit over the same period last year. Sales in North America, which accounted for the largest share, fell 24%, while same store sales fell 23% year-on-year.

Analysis shows that Coach's brand transformation and acquisition are more difficult to improve performance directly in the short term, but refer to medium and long-term interests. However, the change of the new generation of consumers and the change of market demand are indeed the upheaval that the brand must face.

According to the report from the Institute of wealth and quality, the value of consumers in the luxury consumer group will depreciate rapidly when they pursue customized lifestyles and their brand personality is not obvious. The industry also believes that for many fashion brands, the "85" and "post-90s" consumer groups, which are more and more important to be ignored, have broader vision, more choices, less impulse buying, and lower brand loyalty. Experiencing high quality life is what they expect when they consume luxuries.

In the past, Coach's products were mainly bags, but today, bags and bags are among the most profitable products in luxury and high-end fashion industry. clothing Shoes, accessories, cosmetics, home series and so on have become consumers' favorite new products.

Yang Baoyan, President and CEO of Coach China, told reporters that the brand new positioning is designed to inject new vitality into the brand so as to enhance the brand's yearning for consumers and further increase their affinity and interaction.

Zhou Ting, President of the luxury goods field and President of the Institute of wealth quality, believes that the luxury industry has gone through a long period of profiteering, and will go directly into recession in the period of growth. This is the unique life cycle of luxury as a product of a certain historical stage of the commercial society.