Analysis Of Michael Kors'S Starting Road

From 2011 to early 2014, Mike's Michael Kors was in its prime. In 2014 April, Mike Michael (Kors) earned the first time over the old luxury brand Coach.

And the stock price is the highest in history, at 101.04 dollars per share, reaching the peak of history.

At that time, Mike Michael (Kors) has laid a dominant position in the luxury brand.

In the past three years, there were many important reforms in Mike Kors (2011~2014 Michael), including the October 2012 Harper s Bazaar thematic director, job hopping Michael Kors, vice president of global communications, and appointed Ron Offir as senior vice president of e-commerce in November of the same year.

In January 24, 2013, Michael Kors launched its Chinese website and officially entered the Chinese market.

In July 2014, Mark Brashear, the former chairman and chief executive of the Hugo Boss AG, was appointed president of the global menswear in Germany in July 2014.

Unlike Coach, which has a long history, Mike Kors was founded in 1981 by Michael Kors, the designer of the Michael.

In 2000, Michael Kors opened the first flagship store on Madison Avenue, New York.

Michael Kors was officially listed on the NYSE in 2011.

By the end of fiscal year 2014, Michael Kors will have 555 retail outlets worldwide.

In Mike Kors (Michael Kors) is still immersed in the dream of expanding the market to expand the market, the reality has given Michael Kors a heavy blow.

In August 2014, Mike Michael shares began to plummet. At that time, Wall Street was very dissatisfied with the gross margin of Michael Kors. As of the first quarter of 2015, Mike Kors (Michael Kors) has not stopped.

The concept of "light extravagance" was first proposed by Coach.

As early as 2000, the location of "luxury goods" was discussed in the company, hoping to provide another alternative to those consumers who did not want to buy high priced products but eager to have boutique.

After repositioning, Coach adopted several strategies: first, product modification, second to accelerate the pace of new product listing, and the third step is to redecorate the store.

In this case, Coach completed the pformation of the brand in a short time and tasted the sweetness.

Subsequently, Coach expanded rapidly in several years and reached its peak in 2012.

But then the rise of Michael Kors led to a decline in the market share of Coach and began to decline in the Kors market.

By the end of the fiscal year of 2015, Coach closed 49 stores, and currently operated 965 stores, compared with 1014 at the end of last fiscal year, 77 shops in the North American market in the financial year group, 2 closed in the Japanese market, and 18 to 171 in the Chinese market, 5 and 7 in other Asian markets and European markets respectively.

Taking a look at Coach and Mike Kors, these two brands have their own similarities in the decline of the Michael brand.

First, crazy expansion.

By the end of fiscal year 2014,

(Michael Kors) will have 555 retail outlets worldwide.

In the 2013 fiscal year, Michael Kors was only 269 at that time, expanding its scale in just two years.

This seems to be the common fault of all light luxury brands, increasing sales by market share.

At the same time, the consequence of the crazy expansion is the high inventory and massive hoarding.

And the capital investment required to open a shop reduces its profit margin.

The same question also exists in Coach.

Second, the luxury market is declining.

Since 2014, the global luxury market has been in decline. At that time, Michael Kors had not been greatly affected by the new year's day in 2014. (Kors)

But then, because of the increasing market recession, especially in the luxury market, China is most important because of its anti-corruption effects.

Prices and so on began to appear.

Coach was the first wave to be affected, and Mike Kors (Michael) followed closely with Coach.

Third, fierce competition.

When Michael Kors was just listed, the luxury brand was just rising. Soon, Coach was the first person to eat crabs, and the two brands were rivals for each other at the time. Mike,

However, with the development of Michael Kors, many brands have seen the market of luxury and luxury, and have taken part in the market. "Mike"

In particular, Kate Spade & Co rose fastest, earning $1 billion 138 million 600 thousand in the fiscal year 2014, up 41.7% from a year earlier.

Become Mike Michael Kors's new competitor.

Fourth, there is a lack of iconic commodities.

As a brand, it is necessary to have its own iconic products.

But so far, Mike Michael (Kors) has not appeared any iconic commodity, but has been caught in plagiarism.

This makes the brand's centripetal force not enough, with a temporary high.

And there is no fixed fans.

Coach is better than Mike Kors (Michael). After all, Coach has a long history and leather goods have a certain market in the US market.

Fifth, improper positioning of customer groups.

As a light luxury brand, Mike Michael (Kors) has locked the customers in the middle and high-end consumers, but in the sales strategy, it has set up different price brands to meet the needs of all kinds of customers.

MK has both brands sold in high-end department stores, as well as brands sold in the middle market and at discount stores.

If you buy the same kind of goods in the department store at half price, the MK discount stores will cause consumers to be unwilling to buy in the upscale area, thus losing some high-end consumers.

At this point, Coach has the same problem.