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    Luxury Department Store Plans To Slash Handbags

    2016/11/2 13:01:00 46

    LuxuryHandbagsFashion

    In the upcoming Christmas and New Year holidays, Nordstrom, Bloomingdale 's and Barneys New York, etc.

    Luxury goods

    Department stores plan to slash sales.

    Handbag

    Style to avoid subsequent large sales discounts.

    According to reports, fashion industry data analysis firms Edited's senior

    fashion

    Analysts Katie Smith said that luxury retailers are now inclined to reduce the number of new releases, focusing on enhancing identification between handbags and avoiding too many choices for consumers.

    This ensures that the quantity of streamlined goods can be sold more at a positive price.

    According to Edited, as of the third quarter of August 31st, the new proportion of Nordstrom and Bloomingdale 's two department stores handbags fell by 23% and 3% respectively, compared with 5% and 11% respectively in the same period last year. The new proportion of Barneys in the third quarter decreased by 41% compared with the same period last year, while the new proportion increased by 46% over the same period last year.

    Handbags brands like Coach, Michael Kors and Kate Spade have cut sales in department stores, avoiding the eventual sale of large discounts to damage brand image.

    When luxury retailers report quarterly financial data this week, the focus will be on their effectiveness in suppressing discounts and reducing the demand for handbags.

    (figure above: 2016 /2015 Barneys, Nordstrom and Bloomingdale 's, three new luxury department store handbags)

    (pictured above: the luxury goods category of the millennial generation is only seventh. The categories are clothing, shoes, jewelry, watches, glasses, perfume / cosmetics, handbags, champagne, cars, Cognac brandy.

    Transformation instance

    The traditional luxury goods industry in the United States is now facing the double pressure of electricity supplier competition and the strengthening of the US dollar, the sharp decline in department stores, the weakness of the global economy and the instability of geopolitics make the industry's future worrying.

    This led to speculation in the industry about the merger of Coach or Burberry, a luxury brand in the UK.

    Neil Saunders Saunders, head of consumer goods research firm, said the slowdown in the luxury industry has led many retailers to consider merging different brands to enhance their value.

    Take Coach as an example, in August, the brand sold the real estate in Hudson square in Manhattan at the price of 7.07 billion, and began to study the merger and acquisition plan. Meanwhile, the brand interior is undergoing a major pformation.

    Coach handbags (handbags business, which accounts for more than half of total sales), began to expand accessories and footwear categories, and actively promoted the shoe brand Stuart Weitzman acquired last year to develop new products to attract consumers to pay the full price.

    According to Scott Krasik, an analyst at research firm Buckingham Research Group, Coach has achieved sales growth for three consecutive quarters after getting rid of its nine quarter sales decline, but its discount sales (outlets) passenger flow still faces downward pressure, which accounts for more than half of the sales of North American Coach.

    He believes that the weak sales of Coach will seriously affect profit growth.

    Michael Kors is also seeking diversified development, mainly including expanding male products and smart watches and fitness bracelets jointly launched with Fossil brand.

    Although reducing sales in department stores may affect brand sales in the short term, Michael Kors chose this strategy.

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