Luxury Accessories Brand North American Performance Decline, Try Pformation To Cope With Competition

< p > a few days ago, American fashion design luxury accessories brand Coach announced its fourth quarter of fiscal year 2013.

Its net profit fell by 12%, due to the poor sales of handbags in the North American market.

The main reason for the analysis is that market competition is intensifying, forcing Coach with shrinking market share to pform lifestyle brands.

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At the same time, Coach announced the resignation of two executives, which is a new round of turmoil following the shift of Coach CEO.

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< p > < strong > North American performance showed declining trend < /strong > /p >

< p > the first three months ended June 29, 2013, the Coach group's net sales amounted to US $1 billion 220 million, an increase of 6% over the same period last year, an increase of 9% at a constant exchange rate, and a net profit of 221 million US dollars, down 12% over the same period last year.

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Jan Nelson, chief financial officer of P Coach, announced at a conference call that the company's negative sales growth will continue until the end of 2014.

Lou Frankfort, the current chief executive, also believes that the improvement of the company will be a "long process" unless the store gets a substantial boost in LewFrankfort.

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< p > Xue Shengwen, senior researcher of CIC consultant, said that the world economy has not yet recovered and the demand for luxury goods is still at a low level. The decline in Coach profits is not a case in point, but a common phenomenon in the luxury industry.

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< p > results show that the international sales in the fourth quarter increased by 7% to US $386 million compared with the same period last year, and sales increased 17% over the same period last year, of which China's regional sales continued to be strong, sales grew 35% year-on-year, and double-digit growth was achieved in the same store sales.

Coach has added 8 stores in China, bringing the total number of stores in China to 126.

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Less than P, it is worth mentioning that Coach's same store sales in the North American market dropped by 1.7%, far less than the average 0.6% growth expected by analysts.

In addition, North America accounts for 63% of the Coach global market, so the decline in sales in this region has an unusual impact on the company.

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< p > for this reason, Xue Shengwen believes that on the one hand, North America is the hardest hit area of the financial crisis, and the market demand for luxury goods is small. On the other hand, the saturation of luxury goods in North America has been higher, and in emerging markets such as Asia, the growth of the market is still in the ascendant.

In the next few years, the growth rate of the luxury goods market in North America will be relatively slow, and the emerging market is the "main battleground" of luxury goods.

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< p > < strong > trying to pform to cope with competition < /strong > < /p >

< p > a news report on personnel changes issued together with the financial report made the situation of Coach worse.

The news said Coach chief operating officer Jerry Strizek (JerryStritzke) and North American president Michael Tucci (MichaelTucci) will be leaving in August.

In January this year, the company announced that its chief business officer, Victor Luis (VictorLuis), will take over as Frankfurt's chief executive since 2014.

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< p > for this reason, Xue Shengwen believes that frequent personnel changes are unfavorable to the steady development of Coach, especially the frequent replacement of leadership, which will lead to a vicious circle.

At present, stabilizing the leadership is a top priority for Coach.

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There is no doubt that Coach is experiencing a decline in market share, especially in the North American market, the sales of women's handbags in P.

The company expects to close 18 stores in North America this year, while Executive Creative Director ReedKrakoff decided to solo and stripped the same brand from Coach.

Nelson, chief financial officer, said in a conference call that the growth rate of Coach's store area will slow from 10% to 7% this year and the number of layoffs will reach 200.

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Whether P Coach can win back the young and fashionable consumer groups has become the key to success or failure of the company.

In order to increase revenue, Coach actively expanded its business scope and pformed into a more comprehensive and luxurious lifestyle brand.

In addition to men's wear, jewelry, perfume and < a target= "_blank" href= "http://www.91se91.com/" > shoes "/a" category, its classic handbag category will also have a price increase.

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< p > to Coach in the footwear market, Brian Petra, head of A.T.Kearney Chicago, a consultancy, described this as a "tough battle". Coach will face unprecedented challenges if it wants to succeed in a field that is more competitive and slower than handbags.

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