Coach's New Move: The Big Axe Will Change Its Daily Sales.

"Transformation takes time." CEO, a company that is trying to save itself from its slump, will often say that this is their alibi for investors and analysts at the quarterly meeting. Time is a good medicine. Although sales are declining, the transformation measures taken by the company in the same period may be warming up. Only time will tell us the final result.

Such as Coach, in the fourth quarter of this year, its tax revenue dropped by 12 percentage points, and now the tax revenue is about one billion. However, Coach is still trying to restructure its store designs and cut prices. Policy decision Change the sales volume that it continues to slide.

At the same time, Coach Stores are also making adjustments. So far, 150 Coach stores in the world have been refurbished, of which 70 are American stores, and the company is expected to make the brand a "modern luxury".

From creative director StuartVevers in February last year. New York Fashion Week Since the launch of the design series, Coach has been working hard to transform. Coach's CEOVictorLuis said they will launch the first women's clothing show in New York fashion week in September this year.

In the fiscal year ending June 27th, Coach sales fell from US $4 billion 810 million in 2014 to US $4 billion 190 million. In North America, Coach's sales fell by twenty percentage points, from $6 million 910 thousand to $5 million 560 thousand.

The decline in sales is partly attributable to the fact that Coach has reduced its frequent discount activities. This is an important decision for Coach to move closer to luxury goods. In the past few quarters, Coach's price cut has dropped from three times a week to two times a month, and has been on sale for half a year in the summer.

Cutting price cuts is good for Coach to attract new customers. But at the same time, customers need to take some time to adapt to the fact that Coach no longer discount, and pay the full price to buy goods. This is a game of time.