Will you buy coach bags, watches or coat? The initial product line appears dotted with products will become the main source of income for the next as a coach. From the spring of 2013, the United States of America coach will be 100 full price shops and 50 global flagship stores launched more shoes. Then, the coach will be officially launched the women's clothing line. The coach wanted to use this strategy to solve it touch on top of the handbag Market Problems - Coach CEO Frankfurt in January 23rd in the second quarter of the fiscal year 2013 performance conference to a less optimistic performance data: total revenue in the second quarter of the first coach to $1500000000 income in China, the growth of 40%. But the coach accounted for 73% of total revenue in North America, and the same store sales down 2%. This is the 12 year, the coach of the third examples of negative same-store sales growth. The first occurred in the "9 .11 incident", in 2002, second is a serious global financial crisis in 2009.
In order to save the downturn, also tried many ways to coach outlet hopes to develop new customers, such as the introduction of the 16 to 25 year old girl "Poppy family” The average price of only $260 handbags bright-colored color, texture thin, plate engraved with coach logo printing is no longer a stereotype, but a naughty graffiti font. Coach handbags, the average price of $300, but Frankfurt has found more than a $400 handbag also began to have more and more customers. The summer of 2012, priced at $398 to $1400 "Heritage Series" coach handbags are exhibited in the store shelves. The coach in a holiday sales recent statistics, more than $400 in coach handbags holiday sales accounted for 20%, and in a year, this ratio is 16%.
However, these are only the restructuring of the existing products based on selling handbags and accessories; light is not enough to support its continued growth in the fierce competitive environment. Not handbag has been unable to generate profits -- the fashion industry is a secret, fashion week show is always the focus of clothes, but 70% of the profits from these brand handbags and shoes to create a brand attribute, but the coach did not appeal in today. The coach was born in Manhattan, New York on 1941, the United States, originally developed the first single "landing tepid, until 1996, Frankfurt invited the young designer Reed Krakoff to join the company's creative director, and the coach a minimum of $125 can" afford "popular.
The new package from the material to the European luxury brands and styles are similar, but much cheaper. Very competitive prices to help coach soon opened the mass consumer market: these bags to fill the growing middle class consumer’s desire, but also skillfully maintain their identity. In 2000, the New York stock exchange-listed coach, the next six years, every quarter has maintained two digit growth in sales. In order to reduce the production cost, coach handbags has never denied most of China foundry production outsourcing. The coach gave rise to lower prices of many brands in China set up a new business model, but by using the high-frequency handbags products with high profit.
Current coach handbags women still occupied the North American market and 35% of the share, but Frankfurt is becoming more and more aware of the "market has changed.”Negative growth for the second quarter of 2012, the coach factory outlet of the same store sales in the North American market, the coach was Tory Burch, Kate Spade and Michael Kors these competitors attack Very rapid growth of competitors. Kete and Michael Kors respectively in 2012 November and 2013 January, and released second quarter financial report in the fourth quarter, same-store sales growth of 27% and 45.2% of two brands.
Founded in 1993, the Kate Spade style New York more strongly than coach. Dynamic Kate Spade sells sweet candy colors, but dignified. This brand is mainly sell handbags, but again, perfume, shoes and women clothing gradually added to the production line, which attracted many young workers and Michael Kors new era of Calvin Kline, simple style and ability. From the beginning, it launched women’s clothing and footwear and handbag sale a series of sub - brand "MICHAEL MICHAEL Kors". The original as creative director Celion founder Michael Kors professional fashion and leisure together. In addition, the Michael Kors itself has some appeal in the fashion world.
If you know these brands, you can know how much money they sell, but you can't tell the coach selling point. It may want to learn Michael Kors, the design team coach invited Sandra Hill to lead the new women, designer Paul Smith once in the design director of the female, and worked there for 16 years. But Paul Smith is characterized by humor and relaxed, if you say this is the coach of the DNA, DNA, or no more than it is strange. In addition, occupation managers have not fundamentally changed a brand. In the transformation project manager, more products will be developed, but it also means that the coach needs casting factory more, which is more large-scale investment brings a corresponding return is unknown.
However, Chinese Hongkong, an unnamed Investment Bank Asia Retail Director think coach casting expansion does not constitute a risk. The investment and management issues can be handed over to the factory to complete, China foundry industry is already very mature, from design to production to quality control, do not have to worry about the coach, the coach needs investment funds can be small foundry. "According to industry practice, Sandra Hill might just for concept design, detailed design is actually still employed in foundry designer.”Coach the biggest need may be throwing money into advertising to build their own lifestyle brand image, for example, to enter the fashion week show, and still want to buy advertising space. "The interviewer said. This means, the coach must create something out of thin air if they sell - goes well.
Mature consumers need to better represent their individual products, but perhaps there is hope in emerging markets, China is the only good news from the market. Total sales in the second quarter China coach market not only increased 40%, same store sales saw a two digit growth, the second quarter of this year, coupled with the newly opened stores, 117 stores in China has 13 coach. However, Kate Spade and Tory Burch have entered China, despite their number and visibility of Chinese shops are still unable to compete and coach. "We hope that, when you are thinking about, your head coach is a woman and man appear, and their way of life.”Reed Krakoff said he did not want people mention it only to remind the coach handbags. But the problem is, Reed Krakoff must think clearly, coaching style is ultimately what style?