China'S Emerging Consumer Market Is Hard To Understand The Global Luxury Decline Of Kochi

Luxury tycoons are blocked in China COACH This kind of light luxury brands welcome good news. COACH recently released the financial report as of December 28 last year, saying that the company's sales in the second quarter of this fiscal year were $1.42 billion, down 6% from $1.5 billion in the same period last year; The operating revenue of the same quarter was $436 million, down 17% from $527 million a year earlier.

The obstacles of luxury giants in China have made light luxury brands such as COACH welcome good news. COACH's sales in China soared in the second quarter. However, this has not stopped the sharp decline of the brand's global business.

COACH recently released the financial report as of December 28 last year, saying that the company's sales in the second quarter of this fiscal year were $1.42 billion, down 6% from $1.5 billion in the same period last year; The operating revenue of the same quarter was $436 million, down 17% from $527 million a year earlier.

In this regard, COACH's financial report analysis pointed out that the decline in the company's second fiscal quarter performance was due to the unsatisfactory performance of women's handbags and accessories business in the North American market, which directly offset the good performance of men's business and footwear products. Data display, which North America Same store sales fell by 13.6% year on year.

At the same time, sales in China has become an important engine for the company's performance. Victor Luis, CEO of COACH, said that "although the North American market is not optimistic, the same store sales in the Chinese market have achieved double-digit growth". In addition, in the second fiscal quarter, COACH also adjusted the shipment time of products to match Chinese holidays, which significantly increased the shipment volume of international wholesale sales outlets.

New York, USA“ Luxury ”The latest financial report released by the brand coach last night showed that the sales in the first quarter of fiscal year 2014 as of September 28, 2013 were $1.15 billion, down 1% year on year; Net profit decreased by 2% to 827 million US dollars from 845 million US dollars in the same period last year; Operating revenue also decreased by 3% year on year. It is worth noting that, in the midst of a decline, the performance of Coach in the Chinese market continued the strong performance of the previous quarter, with a year-on-year growth of up to 35%, which is unique, and the same store sales of direct stores also had a double-digit growth.

In terms of the global market, Coach's performance in North America and Japan is particularly bad. Due to the continuous efforts of Michael kors, the largest North American market of Kochi in the world has been slowing down recently. In this quarter, the total sales of Coach North America fell by 1% to 778 million US dollars from 784 million US dollars in the same period last year, the sales of the same store also fell by 6.8% year on year, and the shipments to department stores also declined slightly. The Japanese market, combined with the exchange rate factor, fell by 22%.

With rich experience in the luxury industry Lu Xiaoming, now the founder and president of Organic Home, said in an interview: "The products of luxury entry-level market positioning will continue to grow in the future, and the products suitable for the middle class positioning will continue to develop, and the growth rate may be the same as that of luxury in the previous two years, because these products are to tap the real needs of Chinese consumers."

In the last fiscal year, the total sales of Coach in the Chinese market increased by 40% year on year, while other luxury brands such as Italian fur la and American leather goods and clothing brand kate spade also performed well and were actively expanding their business in China.

UBS Securities analysis report said that the public oriented Luxury consumption It is the long-term trend of the Chinese market.

In order to further tap the space of emerging markets and cope with the weakness of the North American market, Coach has actively promoted the transformation of brands since last year. Not long ago, the brand officially launched a comprehensive footwear product line, and Kochi's brand transformation plan is to transform from a brand focusing on leather goods to a fashion lifestyle brand including footwear, clothing and other product lines. Lew frankfort, chairman and CEO of Kochi, said that the company has achieved good growth in emerging markets, men's business and expanding fashion life categories, which is also a brand transformation measure for the competitive environment of the handbag and accessories business market in North America.

In the last fiscal year, Kochi's new men's business grew by nearly 50%, while the sales of footwear products reached 250 million dollars. At the same time, the sales of scarves, sunglasses, jewelry and other categories accounted for 7%.