Coach change its business mode

Victor Luis, chief executive of Coach, said the company plans to stop the sale and close the poor performance of the stores, will focus on product design and product quality.

Coach is trying to fix the business model. Coach committed a classic mistake, that is, the use of brand reputation fell into many of the rapid development of the retail brand common trap: business rapid expansion, a large number of stores, the use of discount to retain customers. The end of the negative effect is that consumers will no longer pay for the price of $600 Coach handbag.

“Coach is a typical company that has been successful,” says Helgesen Hkon, a retail analyst. Its products have become ubiquitous, it is as a luxury for most unacceptable things, exclusive luxury concept has gone. ”

According to Morgan Stanley, said, now, Coach take 17% share of handbag market in the United States. Two years ago, it accounted for 24% . However, the company is trying to correct its error. Coach has been in the decoration of the store, to reduce sales and provide the new design. These efforts seem to have worked well. For the Coach brand, the recent quarterly turnover fell by 9.3%. Compared to last year, the company’s two digit decline, has improved.

Coach online service

Coach has a low-key line import electricity supplier shopping platform, including handbags, men’s bags, small leather goods, jackets, shoes, scarves, watches and jewelry are available online sales, landing the site found no difference in the store , at the beginning,the shop offer two men Wang autographed package, will also launch new products through monthly strategy to attract consumers, experts say, the luxury electric providers in the country to open import primarily as a line add the offline channel.

Coach online Shop In addition to selling merchandise, but also provides a one-year warranty, service and VIP exclusive benefits, there is no difference with the line stores, in addition, consumers are entitled to purchase any products Free gift wrapping and mainland China, free delivery service, as well as 7 days return and money back guarantee. Meanwhile, Coach side said, the shop accepts cash on delivery, Alipay and major credit cards and other payment methods.

In fact, last year to celebrate the 70th anniversary of its establishment, Coach has been testing the waters of online marketing in the Chinese market, understand what price of the product is more popular, website click-through rate data. For self-employed shop, Coach responded that, the self-built electric providers on the one hand to provide a consistent service to customers the store, on the other hand also facilitate the provision of genuine and services have not yet set up shop in the local consumer. In addition, the brand represents, self-built electric business platform conducive to control web design content, merchandise management, better grasp of commodity performance, customer requirements and preferences, provide more flexible service.

2016 annual sales resume growth?

For fiscal year 2015 performance, Coach VictorLuis CEO, said: “Last year, a comprehensive plan to revitalize the brand and the development of business in the fourth quarter and full year performance has made progress and made the implementation of these strategic initiatives. They were in line with expectations. ”

It is from the LVMH Group’s Spanish brand Loewe leather goods and high fashion StuartVever hired as its executive creative director, who worked in Mulberry, BottegaVeneta, Givenchy and other brands LouisVuitton work, Luis indicate fiscal 2015 Coach has been successful in multi-channel distribution network introducing StuartVevers design of products.

Meanwhile, Coach in this year to $ 574 million acquisition of the design and manufacture of luxury brand shoes StuartWeitzman from private equity firm SycamorePartners hands, Luis said it was Coach “an important step to take the multi-brand enterprises, expected that the company will add a new the growth momentum. “