COACH Pformation Is Not A Long-Term Solution.

The COACH (Cox chi) company's light luxury image in China is constantly damaged due to low price promotion and blind expansion.

Recently, the Shanghai Nanjing East Road big pill department store's Kou Chi store, the store decoration luxurious, but few consumers enter.

Although the staff explained that Cox had played a diversion role in the two shops of the big pill department store, but the reporter visited the two storey shops in depth and found that there was not much traffic.

"When there is a discount, the average person will be more."

Unit in the mall near LAN Ting Ting told reporters.

In March this year, the company sold a frenzy discount in Beijing ole market, and 2 of the merchandise sold in the past quarter.

Hundred yuan shoes, thousand yuan package trigger consumer looting.

The sale of low price strategy is very harmful to the brand image of the company.

After ten quarters of reform, its earnings report finally recovered slightly.

In the third quarter 2016 earnings report, the brand's net sales amounted to US $1 billion 30 million, an increase of 11.2% over the same period last year of US $929 million 300 thousand.

Nevertheless, the gross margin and net interest rate of the company still decline to varying degrees.

Low price promotion, layoffs and a series of broken arm survival strategies did not seem to embarrass the development of the company.

In response, the reporter sent a letter to the company, responding to the fact that the company is in the brand's silent period and is unable to accept a full interview, because it is the eve of the company's annual and quarterly earnings reports.

Recently, reporters visited Shanghai's Chi Chi store to learn that in addition to the sales volume of discount promotions, the flow rate of the stores is not bad. Even in Shanghai's old core business circle, there is no discount.

Stores are still not popular.

For Bu Anxun, founder of the big think tank, it seems that

Under the background of slowing down, at present, there will be a downward trend in the luxury consumer market. Many luxury brands are relying too much on the single market, and the problem of poor risk tolerance is gradually emerging.

Of course, it is no exception that the slogan "once for all is luxurious".

In an interview with reporters, Zhu Yue, executive director of CIC, said that in recent years, the company has been promoting various kinds of low price discounts, year-end promotions and friends and family promotions.

And attract consumers to rush to buy.

Frequent discounts and promotions have virtually fostered consumers' psychology of "no discount when they are not worth buying".

In this way, the low price promotion strategy and the strong expansion of orlies are very harmful to the brand image of the company.

"To sell high-end brands at a low price, though it can increase consumers' desire to buy some special products, will damage the high-end image of the brand and make consumers lower the price expectations and brand value of the brand itself. At that time, it will be more difficult to regain the recognition of consumers for high-end products."

Zhu Yue said.

In response to the interview, the head of the relevant department of the chi chi group said that in terms of price positioning, the price of its products has always maintained the price orientation of the people, whether in China or in other countries or regions.

"Brand pformation" and "price increase" are linked with the wrong interpretation of the brand upgrading price. In fact, the brand does not raise the price when optimizing the product, and the product mix is also differentiated to meet the diversified consumption needs.

But for the company's low price promotion behavior, the above people explained: "sales promotion is according to the market situation, different brands will make a discount, this is understandable.

Cox Chi has never said that it is going to take a low price strategy, and its price positioning will be 40%~60% lower than that of European traditional luxury brands. This is a pricing strategy they have been playing.