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    Luxury Goods Are Diligently And Cautiously Turned To Success.

    2016/3/21 22:58:00 22

    LuxuryBrandMarket

     One

    After the Chinese New Year's Spring Festival, the continuous news of the shops is stimulating.

    Luxury goods

    Industry vulnerable nerves.

    LV closes two stores in one day, and has Burberry, a customer base in Wenzhou, Zhejiang, closing its flagship store.

    The adjustment of luxury stores has been going on for several years.

    What is surprising is that the United States is still being sworn away.

    brand

    COACH disclosed that by the middle of this year, there will be a net increase of 10 to 15 stores in China.

    COACH explained to reporters that the brand will open 20 to 25 stores, and it will also close some.

    The plan is targeted at the entire Greater China region, including Hongkong and Macao.

    "Brand development and expansion usually allow retail stores to temporarily not make profits, but in mature periods, shops are generally not allowed to make profits, and in addition to the uncertain economic situation, closing stores is a common management decision."

    Lu Xiaoming, President and founder of Organic+, an organic cosmetics monopoly store, said.

    Because the economy of gift giving has been hit, many brands have declined in performance. The shops that they first decided to close are often those who are forced to pay for decoration.

    Such shopping centres were left behind, and bad days had been going on for several years.

    "China has a vast territory and uneven economic development. With the slowdown of economic growth, some cities which have performed well before, such as Taiyuan, Shenyang and Ordos, are all depressed due to the sharp decline of local economy."

    Italy luxury brand Tardini China partner He Bin said.

    For those faded cities, the wrong location, luxury brands decided to give up, COACH is no exception.

    Unlike LV, they are positioned in the luxury COACH, which is more often bought by customers.

    After a downturn in frequent discounts, COACH's performance has improved.

    COACH's latest earnings report was the 2015 quarter of last year, with net sales rising 7% year-on-year.

    Sales in mainland China, Hongkong and Macao increased by 5% over the same period last year.

    It is noteworthy that double-digit growth in China's mainland and same store sales are increasing.

    In this quarter, the number of COACH shops in Greater China has changed from 176 to 181, with 6 new businesses and 1 closes.

    COACH told reporters that it would not publish the Hongkong store plan separately.

    Due to the gloomy retail business in Hongkong, most of the new shops that COACH will add will be in the mainland.

    In early March, the census and Statistics Department of the Hongkong Special Administrative Region government released the data.

    The total retail sales in January amounted to HK $43 billion 600 million, down 6.5% compared to the same period last year, and the ratio fell by 8.5%.

    The 2015 year is the worst year in the last thirteen years, with a year-on-year fall of 3.7%.

    Perishing

    market

    The atmosphere seems to continue.

    The number of tourists to Hongkong has declined, and local consumption is weak. What is worse, the Hong Kong dollar is still relatively appreciating.

    In September 2015, COACH was closed at the flagship store in Queen's road, central Hongkong, and replaced by Adidas.

    Hongkong's extremely depressed retail industry has prompted many companies to focus their strategy on the mainland of China.

    In Hongkong, a developer of high-end shopping centers such as Harbour City, Times Square and so on, last year, two shopping malls in Hongkong declined.

    The mainland is still growing, especially in the state capital center of Chengdu, Sichuan. The rental rate is close to 100%, and the revenue growth is 25%.

    "The sales in the mainland of China are also very good to make up for the slightly weaker sales performance in the Hongkong market and Macao market."

    Yang Baoyan, COACH CEO of China, pointed out to the media.

    It is the common choice of many retail related enterprises to ease the pressure of Hongkong's declining performance by the growth of the mainland's performance.

    Yang Baoyan also pointed out that the middle class in China will further maintain the momentum of rapid growth.

    In March, Rhodes's public relations and precision Market Research Center released the "2016 China luxury goods report".

    42% of mainland Chinese consumers plan to increase their consumption of luxury goods, compared with 25% in Hongkong, down from 30% last year.

    It can be seen that consumers in mainland China still maintain consumer confidence and are expected to continue to grow, while Hongkong is showing a downward trend again.

    The decline of Hongkong's retail industry needs the mainland to make up for it, and the growth of the mainland needs to rely on the middle class.

    At the same time, COACH has to open stores to new and deeper cities to reach new middle class. They are no longer obsessed with big LOGO, and focus on individuality and taste.

    COACH revealed that 40% of the shops will be renovated.

    Just as brand slogan has changed from "the luxury of being in touch" to "modern luxury", we hope that we won't rely on low price to win.

    In 2013, COACH excavated the creative director Stuart Vevers from LOEWE.

    Since then, COACH has tried every means to get rid of the dull old image and try to avoid becoming an otter brand.

    COACH has pformed from its formerly monotonous handbag accessories brand to a fashion brand, and unexpectedly participated in the New York fashion week. It has been trying hard to catch the trend and catch the young people in digital marketing.

    COACH is still cautiously raising the price.

    A few years ago, Mulberry had blindly raised prices in Waterloo.

    COACH has launched a series of COACH 1941, which is slightly more expensive than general COACH, and put it in some Limited stores to test the water.

    In this way, COACH did not give up consumers who were less budget in the past, but also raised the brand image.

    COACH, a brand of red, and so tired, is turning around diligently and cautiously.

    Can it be successful? Maybe soon people will feel the change from the refurbished COACH shop.

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