Light Luxury Brand Pformation Facing Difficulties Coach Shut Down 70 Stores In North America

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< p > Coach is still a worthy reference and respect brand. It is neither healthy nor shoddy. It has been 70 years of conscientious and conscientious work.

But now he is in the shop. "/p".

< p > the luxury brand that Baidu search has increased dramatically recently is an old brand Coach and a new Michael Kors.

Stuart Vevers, the new Executive Creative Director of Coach, is busy presenting 2014 of autumn's new products in Tokyo, Japan, although this is the first series that he released after taking office. Coach is the first official launch of the first a target= "_blank" href= "//www.sjfzxm.com/" > dress "/a" series for the first time, but the life of Stuart is not good, because it has recently been trapped in the "closed shop door".

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< p > < strong > shutting down 70 shops in North America < /strong > /p >

< p > the latest Coach is launching a global pformation plan, and the offline stores and online networks are opening up.

The most shocking industry is planning to shut down 70 shops in North America, as its earnings report shows that sales in the same year in the 2015 fiscal year in North America are down by 14%-19%, including comparable sales of Web sites, which will drop by 24%.

Previously released third quarter data as of March 29th showed that its sales in North America fell 18% to 648 million US dollars over the same period. In addition, Coach announced on shareholders' day that total revenue in the 2015 fiscal year will shrink by 11%-13%.

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< p > to achieve long-term growth, Coach launched a multi-year pformation plan. The measures include not only closing branches, but also restructuring global store networks and sorting inventory.

Coach expects that about $250 million to $300 million in pre tax expenditure will be reflected in the fourth quarter of the current financial year and the rest in the new fiscal year.

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Less than P and Coach appeared on the search engine. It was the brand Michael Kors, which accurately positioned the global luxury brand. Not only did it rely on its own design to drive profits, it increased 50 times in 5 years, but also maintained a 20% increase in the same store, and the stock price has increased two times in the past two years.

Some people joked that "Michael Kors is successful on the decline of Coach", and the industry jokes that Coach has been reduced to "empty artifact".

In short, the 70 year old shop in the United States once started talking about "pformation", is a "close shop 70" a heavy punch, I think in recent years, it is difficult to see on the mainland it has beautiful performance growth.

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< p > < strong > Chinese market "help grass" < /strong > /p >

< p > what is interesting is that while Coach is on the high side in the North American market, the name of Coach is on the list in the recent 2014 Fortune 500 list, and it keeps pace with Michael Kors.

Michael Kors is the only luxury luxury brand listed in the top five stock market in 2013.

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Coach, the founder of the concept of "P", "light luxury", should be fed up with Michael Kors.

In its view, Michael Kors is like a copycat with quick imitation and quick response. It moves to the rapidly changing market environment, and makes full use of its careless positioning and timing.

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< p > so when someone in the industry said in a certain report that "the luxury brand represented by Coach and Michael Kors is rising vigorously and ushered in the best time for their development in China", it sounds like a great irony in Coach.

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< p > financial results show that although the global sales of Coach fell by 1% and 6% respectively over the same period last year, the total sales growth in China has reached 35% and 25% respectively. At the critical moment, the Chinese market has become the only straw that Coach can relieve pressure.

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< p > however, awareness of the importance of the Chinese market lies not only in Coach but also in the Michael Kors at any time.

When the former was busy with the shutting down of North America and the market pformation, the latter not only dug up Li Dakang from DIOR to serve as the CEO of Greater China, but also invited Chinese models and many Chinese stars to participate in their own showrooms in order to win the favor of Chinese consumers.

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< p > < strong > pformation is not easy < /strong > < /p >.

< p > in fact, the global accessories and handbag industry growing at a rate of 7% per year is still one of the fastest growing sub sectors in the retail industry.

Experts predict that the sales volume of the whole market will increase from 35 billion now to 50 billion in 2018.

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< p > Coach once achieved a much higher growth in the North American market of its base camp than the industry average. However, due to the erroneous positioning, the market share of < a href= "//www.sjfzxm.com/" > Coach < /a > was greatly eroded by the competitors similar to MichaelKors, and the market share also dropped from 30% 2 years ago to 22% today.

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< p > reanalysis price, a Coach package is about $300-400, higher than Michael Kors's $100-200, but it doesn't go far beyond design and brand power.

Once established the "light extravagance" position, the most competitive market performance price ratio is also getting worse.

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< p > of course, we must affirm that Coach has a "painful experience" and frankly of the American character gene. Unlike many brands in China, even if they are wrong, they often "blow up their faces and fill their fat". After summarizing the wrong location and bad sales data, Coach management decisively decided to close 70 stores and 9 outlets, and reorganize the global store network.

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< p > < < a href= > //www.sjfzxm.com/ > > LV > /a > Hermes is unreachable. After that, young brands such as Michael Kors are covetous.

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< p > when it comes to orter, recently, an article in the book "Coach's" has been dragged down by Oteri J. The reason why the factory store has been implementing discount prices, high store prices and almost the same quality, has made "more and more savant consumers" begin to realize that Coach brand is no longer the same as "American hand gift".

As a matter of fact, the reason for the pformation of an international brand with a history of mature and mature markets must be comprehensive and profound.

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< p > no matter whether Coach can survive the "hard day" of the Chinese market, it is a worthy brand to learn from and respect. It is neither good nor bad, and has done 70 years of conscientious and conscientious work.

In any case, pformation is difficult, and extravagance is not easy, and it is changed and cherished.

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