Coach faces new challenges after it’s renamed

Victor Luis, the chief executive of the group, said in a conference call after the report that the performance of Coach, Stuart Weitzman and Kate Spade contributed to the growth of the group’s total income, proving that the group is making progress in the integration of various brands of resources.

In the channel aspect, Coach and Kate Spade have realized the gradual decline of department stores, and began to reduce the volume of brand in department stores. Victor Luis pointed out that the proportion of wholesale sales, including department stores, in total group income has slowly narrowed, and revealed that the performance of Coach brand in North America has improved, and the growth of 3% in the second quarter.

Victor Luis revealed that the group has recovered the business rights of Kate Spade in mainland China, Hongkong, Macao and Taiwan, and Stuart Weitzman’s operations in the north of China, and these two measures will help the group to better control its brand.

In fact, the group had previously recovered the Coach brand management right by a similar local style, and bought a joint venture, ImagineX, in the Greater China area in 2008. Last year, the group also reclaimed the right to operate Coach brand in Australia and New Zealand.

Coach parent company lays great emphasis on brand control

Strengthening the brand’s actual operation control right may play a role in the long-term growth of future performance, but it will also occupy more resources such as capital in the short term. Tapestry said, “based on the strong performance of this fiscal year, it is expected to provide sufficient funds for this strategic move and maintain the growth target of revenue for the year”.

In addition, Beijing commercial newspaper reporters noticed that the Tapestry flagship Stuart Weitzman flagship store is now closed, searching for the store link, and the page suggests “no corresponding store information”. Beijing Business Daily reporter search Tmall platform found that there are still other stores that sell Stuart Weitzman, but the number of transactions is in the same place. It can be seen that these online third party stores are not the main selling channels of Stuart Weitzman on the Internet. Among them, glamour official flagship store customer service staff told Beijing Business Daily reporter that the store used the flash buying mode, so the number of sales was limited.

For the next development of the 2018 fiscal year, Tapestry said that the company was ready to promote the continued growth of Coach’s sales in the same shop, the upcoming series of more creative, cross – class and channel products, and the spring marketing campaign that was supported by Selena Gomez. The Stuart Weitzman will push the new creative direction of Giovanni Morelli, including the first shoe track and handbag series, and the Stuart Weitzman new store is the next key development direction; Kate Spade will focus on strengthening integration and implementing the established strategic initiatives under the creative guidance of Nicola Glass to lay the foundation for the growth of the 2019 fiscal year and the future.

Coach has suffered great loss after it’s renamed

According to the Italy luxury industry association and Boston consulting company, the global luxury goods industry consumer insight of the 2017 year shows that the pace of global luxury market growth gradually gradually gradually, in the next few years, the global luxury industry growth will be from the average 8%-10% in recent decades, to the 2%-5% interval. Among them, China’s market consumption growth rate has entered the low single digit is one of the main factors behind this trend.

The structural slowdown of the global luxury market is accompanied by a key transformation of the consumption mode, which constantly rewrites the competition pattern of the luxury market. Brand needs to constantly adjust brand and product strategy to ensure core customers always win in the new environment. So, 2017, what are the new trends of luxury industry that need attention?

2/3 of consumers are no longer keen on formal dress as they used to be. This is mainly because the formal dress of the mature consumer wardrobe has been able to meet the formal needs; in addition, the dress style of the younger generation is becoming increasingly casual. At the same time, the demand for personalization, especially customized products is increasing day by day, and has become an effective way to improve consumers’ purchase intention.

The New York luxury group Coach is going to withdraw from the Hong Kong stock market

It is understood that, at the beginning of December, Tapestry and Inc. applied to the Hong Kong stock exchange for the delisting. The company said it will be trading lightly in Hong Kong and will focus on the New York Stock Exchange in the future. In the middle of this month, the company said it had already obtained the approval from the HKEx.

On the last trading day of Hong Kong stocks, Tapestry, Inc. Hong Kong shares closed 31.30 Hong Kong dollars, the 0.32% rise in the counter trend and only 2000 shares in volume.

In contrast to the downturn in Hong Kong stocks, Tapestry, Inc.’s US stocks rose 1.47% on Monday, continuing the rise of retail stocks since Thanksgiving last year, which has recorded more than 9% growth so far this year, with a rise of 36% in the past year. However, its performance is still far behind its rival Michael Kors Holdings Ltd. (NYSE:KORS), which has surged 60% in the past year. At present, the competition between the two companies has expanded from the light luxury brand to the competition of luxury group construction, and the two companies are actively merging.

In October 11, 2017, New York luxury group Coach, Inc announced that it would change the company’s name Tapestry and Inc, and the change came into effect in October 31, 2017.

Coach denies that creative director Stuart Vevers will leave

A few days ago, Coach chief executive Joshua Schulman denied the rumor that the brand creative director Stuart Vevers will leave, and stressed that the partnership between the brand and Stuart Vevers is very solid.

Joshua Schulman also said that the brand usually does not respond to rumors, but it is necessary to eliminate similar misunderstandings and rumors, but he did not disclose the specific content of the Stuart Vevers contract.

Earlier, there was an industry figure that if Stuart Vevers resigned the rumor, he would be the other most likely candidate to succeed Christopher Bailey as the creative director of Burberry. It is reported that Christopher Bailey will withdraw from the Burberry board in March 31st.

It is worth mentioning that, according to Coach’s parent company Tapestry group’s earnings in the three months to December 30th, its sales in December 30th rose by 35% to $1 billion 790 million, more than the expected $1 billion 770 million in Wall Street, the gross profit rate of 66%, and the net profit of 68.2% to 63 million 200 thousand U. S. dollars.

The recovery growth of Coach stores

Coach Tapestry, the parent company of the light luxury brand Coach, announced its second quarter results as of December 30, 2017. The financial report pointed out that Coach global sales recovery and holiday holiday product series strong performance, Stuart Weitzman sales increase and Kate Spade contribution, Tapestry, Inc. 2018 fiscal year second quarter net sales of 1 billion 790 million US dollars, the same period in the previous year For $1 billion 320 million, the basis of the financial reporting and the constant exchange rate increased by 35%, of which the net sales of the Coach brand second for the fiscal quarter were $1 billion 230 million and $1 billion 200 million in the same period of the previous year.

According to the financial report report and constant exchange rate calculation, up 2% compared with the same period, the net sales of Kate Spade was $435 million, and the net sales of Stuart Weitzman second financial quarter was $121 million, and 118 million US dollars in the same period of last year, up 2% from the same period.

Tapestry, Inc. chief executive, Victor Luis, pointed out that, in addition to the growth in sales revenue, the company has also promoted a significant increase in revenue by implementing better than expected profit indicators and strictly controlling spending, and said earnings will exceed the annual profit guidelines set by Tapestry at the beginning of the fiscal year. According to Tapestry, the Inc. adjusted 2018 fiscal year guidelines showed that the expected sales revenue increased by about $30% to $5 billion 800 million billion in fiscal year 2017, while revenue is expected to increase by 22%-25% annually.

How does Coach win back young consumers in three years?

On the day of the new series of shelves, a 95 female consumer bought 11 women’s clothing products in a series. Salesmen at COACH flagship store in Guangzhou are revealed to fashion headlines.

In March 7th, COACH creative director Stuart Vevers paid tribute to the 2018 spring summer series of the death graffiti Keith Haring, which is officially landed at COACH Guangzhou flagship store.

In the refurbished COACH modern luxury store, the brand new series is displayed in the most prominent place in the store according to the different categories of handbags, women’s clothes, men’s clothes and accessories. COACH 2018 spring and summer series through the spliced cowboy, simple leather, personality graffiti pattern to the consumer to interpret the essence of American style western style as well as personality fashion American lifestyle attitude.

Obviously, after a series of transformation from inside to outside, COACH has become a luxury brand known by millennial consumers. At the end of the media luncheon held at COACH, Yann Bozec, the chief executive of the brand Greater China, received an exclusive interview with the fashion headlines, telling the story of the three years behind COACH’s gorgeous turn.

Yann Bozec became president and chief executive of COACH Greater China in July 2014, mainly responsible for the brand reshaping strategy of COACH in mainland China, Hongkong, Macao and Taiwan.

Coach’s cross-century cooperation with the graffiti artist

You must have seen these graffiti works in many places, or on clothes, or accessories. The “happy little man”, “the hollow man who will shine and dance”, “the dog with the alligator mask” and so on are highly recognizable. They are bright and saturated with simple lines, but each of them is full of metaphorical colors.

This is the masterpiece of American genius graffiti master Keith Haring. Born in the late 50s, he only lived to 31 years old. In 70s, KeithHaring began to create street graffiti, subway stations, billboards and parks. All the traces of his creation were left. In 80s, Keith Haring became famous, but God made a joke with him to make him end in the most brilliant age.

His graffiti works expressed the youth of the United States in 80s, advocating love and optimism, and today it has also become the belief in the life of the fashionable people. Korean idol Quan Zhilong on his right arm, the tattoo of Keith Haring, and Stuart Vevers, the creative director of Coach, buried the seeds of graffiti art in childhood.

The revive of the ancient styles of coach

The hot topic that has recently swept the world’s fashion world is the Coach spring and summer two “Coach Signature” and “Coach x Keith Haring” series. The reason why people are so concerned is that it is because of the bold and meaningless combination of ancient printing, street graffiti, and gorgeous fashion. It is simply a classic of money, beauty to no friends, no wonder that many people have created many. People are looking for it!

In the American fashion history, the classic Signature printing, which occupies an important position in the history of American fashion, has been reinterpreted in addition to Signature printing, warm color khaki and tea rosy ornamental accessories.

To Europe and the United States, Asian stars and the tide people like, such as: brand spokesperson Selena Gomez, British famous Alexa Chung, Taiwan lady Amy Sun, Japanese famous model Mizuhara Kiko, Korean artist Park Shin Hye and Irene Kim… None of them can resist the Coach Signature series that makes people feel the eye. They are wearing colorful Coach Style with their own heart.