What Should COACH Do To Reduce The High-End Image Of Low Price Strategy?

In China, due to the stereotypes of the consumers' stereotypes of the brand, it is not always possible to make changes.

Its expansion in China and the low price promotion strategy mentioned earlier can be considered as an adequate reserve for the company to bring stable cash flow to achieve the pformation of overseas brands.

On the other hand, in 2015, when the sales volume of global sales declined, only the sales in China maintained a positive growth. The plan to open new stores in China seems to be the lifeline of the brand.

Many of the new stores are open to two or three line cities, and the main way for them to open these markets is to expand channels.

However, whether or not the opening strategy of the company has the final effect can be seen.

Bu Anxun, founder of the big think tank, pointed out: "it is similar to

Such foreign enterprises directly open chain stores and direct outlets in China. On the one hand, its total consumption may go up, but on the other hand, its revenue will come down.

Similar to previous best buy and so on.

Besides, we know that the disadvantages of physical stores are obvious now.

As a listed company in New York and Hongkong, Cox published the strategic goal of brand pformation in 2013, and in June 2014, it outlined a comprehensive multi-year brand pformation plan to cope with the rapid change of market and customer demand, and to create a greater degree of fashion relevance for the company, and to establish closer emotional ties with customers.

As a matter of fact, there are many hidden worries in the eyes of the industry observers, such as the promotion of low price and layoffs.

For a moment, Cox fell into a lost pformation.

In fact, this is also one of the typical problems encountered in the development of luxury goods industry.

In the past few years, many luxury brands have encountered difficulties in the background of domestic and foreign prices, overseas shopping, e-commerce and anti-corruption.

And Cox Chi used the crazy discount and expansion of stores to seize the form.

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In Bu Anxun's view, China

The market is facing the impact from all aspects of development and change, on the one hand is the change of consumer culture, on the other hand, the change of industrial manufacturing system leads to the reduction of demand.

"Cox Chi's use of discounts to seize the market is one of the ways to deal with market competition. However, if there is a discount, there will be many problems.

If you maintain the old product model, there must be other new growth points, new products or services. "

Zhu Yue believes that the development of the luxury industry in China has not been very smooth in recent years, mainly due to the slowdown in the current economic growth, the lack of confidence in consumption, and the excessive price difference between the luxury goods industry and foreign countries, and the slow pace of product renewal.

"The development of luxury brands in China should gradually reduce the price difference to attract consumers who choose other purchase channels because of excessive price differentials as the best priorities. This has been able to take a look at the situation from last year's Chanel price adjustment in China."