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    The Pformation Paths Of Light Luxury Giants Are Very Similar.

    2015/12/4 9:38:00 41

    Light Luxury MagnatesPformationBrand Strategy

    Today, as the Internet becomes more important, the luxury magnates have not forgotten to digitize their brands.

    Since 2009, Coach has been involved in digitization. It started with micro-blog and landed in WeChat a year later.

    Shortly after entering the Tmall platform this autumn, Coach also put in a double 11 promotion front.

    Coach chief executive officer of China

    Yann Bozec

    The importance of digitalization is clearly stated. "Nowadays, the channels for customers to get brand information are mainly fashion magazines and digital platforms.

    In social media, we need to constantly seek new ideas and interact with consumers to stay ahead.

    In 2013, Michael Kors has become the first brand to advertise on Instagram.

    Since then, Instagram has been used for sale.

    Because the platform is only used for image sharing, product content, links and price are not allowed to appear in the picture.

    Recently, New York Digital Marketing Research Institute L2's latest list of second Kate Spade's efforts in digitalization are even more obvious.

    The three big luxury giants Coach, Kate Spade and Michael Kors are already showing signs of recovery.

    Although the market is weak, the three big extravagant giants reveal a good phenomenon, that is, they have signs of warming.

      

    Cox Chi

    (Coach) the latest 2016 fiscal year first quarter financial results show that as of September 26th, the company's performance improved significantly, with net sales of US $1 billion 30 million (about 6 billion 540 million yuan), down 1% compared with the same period last year, up 3% from the same month.

    Kate Spade (Kate Spade)'s three quarter earnings report also showed that sales in the three quarter rose 10.7% to 277 million 300 thousand US dollars compared with the same period last year, and turned into a deficit in profit driven by strong demand in the North American market, achieving a net profit of 2 million 303 thousand US dollars.

    In the second quarter of 2016 fiscal year ending September 26, 2015, Michael Kors reported that the group's revenue in the quarter was $193 million 100 thousand, down 6.7% from 207 million in the same period last year. (Mike)

    Although the data of Michael Kors still fall in the three big tycoons, some analysts of Morgan Stanley have given Michael Kors shares overweight rating, which is one of the holdings of only two places under the category.

    This is also reflected from the side of Michael Kors signs of warming.

    In the past, due to the lack of innovation in light luxury brands and the high inventory of some products, the brand had to cut down its stock through discount sales and so on, and the brand value was diluted.

    Led to a weak market situation, the performance of light luxury brand has been strongly impacted.

    Therefore, in order to get rid of the image of "discount brand" in the reform path, the three big luxury magnates invariably choose not to attract consumption with discounts.

    Coach the number of outlets in North America decreased from 207 to 204 in fiscal year 2015, which has increased more than a dozen times a year.

    And Kate Spade decided to withdraw from the highly popular "friends and family" in the United States, while reducing the discount strength of the entity stores.

    CEO Craig Leavitt of the company said: "the volume of sales at full price is increasing every quarter."

    So far,

    Michael Kors

    In department stores or e-commerce sites, they are still famous for their large discounts, but their earnings conference call said they want their discount products to stay within 1/3 of the total.

    And believe that the earnings report which is still not very good will also prompt Michael Kors to reduce its discount activities.

    Since there is no reduction or even discount, light luxury brands naturally need to enrich their product lines to attract consumption.

    After hiring the original Spanish luxury brand Loewe creative director Stuart Vevers, Coach's product line became rich and extended to ready-made clothes and shoes.

    Last February, Stuart Vevers released the first women's clothing series during the fashion week in New York.

    Subsequently, the brand also released men's shoes series, men's watch series, and also participated in London men's wear week.

    After the handbag Market has become silent, Kate Spade's product strategy has also been adjusted. On the other hand, Li Biao group is responsible for producing soft accessories such as silk scarves and belts. On the other hand, it also keeps developing new product lines: swimsuits, children's wear and sports department and pajamas that will be available in 2016.

    Michael Kors will release its 2016 women's season series in December and release its men's wear series in February.

    In addition, designer Kors has also enriched the price range of brand products. "I have always designed products that are very broad in price range.

    We have everything in our wardrobe, from the most common shopping bag to crocodile leather handbag.

    In our world, flip flops and advanced customization can coexist.

    ,


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