Coach for six years before the package is still a crisis of the old brand, revenue and profitability plummet. CEO Liu Frankfurt (Lew Frankfort) also joked, one who will hear the Coach brand is thought that the old lady used to give. Coach should be in the same year the brand from the U.S. parent company Sara Lee ('s have underwear, hot dogs, cheese cake, etc.) a separate business unit, the whole company is not optimistic about this, founded in 1941, one year only push several dark brown bag, at no visibility outside of the United States sub-brand.
However, after six years, Coach has become the United States Wall Street luxury brand "legendary" stock market in 2000 from two U.S. dollars to the present prices of 30 U.S. dollars, growing 14 times. Brilliant performance, but also let his sixty-year-old Frankfurt crowned "Forbes" Last year, America's most well-paid (including dividends) of executives sixth year, from 86.5 million U.S. dollars. The investing public all over the world are asking: How can the brand at just a few years to create this score?
Positioning "can easily have" the luxury brand
Key: substantially lower costs
The key change is that CEO Frankfurt in 1999, decided to give it a new brand positioning, as a "can easily have a" young luxury brands (affordable luxury), the same time, he changed the production of logic, significantly reducing production costs, so that Coach Price to decline, and re-allocation of resources to the powerful on brand marketing.
Such as the Ministry of Overseas Coach Ian Bickley, president (Ian Bickley) said: Coach's success formula is to "balance magic and logic!" (Balance of magic and logic!), In other words, the balance of the "Low Price" , "a sense of luxury" at the two ends of the original conflict.
Generally speaking, the luxury brand in order to maintain the distinguished brand impression, have insisted on hand-made, the price is also noble. A small banquet package, LV (LVMH Group's main brands) about 5,000 yuan (RMB) about a university a considerable fresh person's salary for two months (meaning you Chinese). LV and Coach as long as less than half the price. However, open financial statements, its gross margin because there is no driving down prices;
Since 2001, Coach's gross margin 64%, higher than 62 percent of LVMH, and all the way up this year, up to 77 percent margin. Behind the "logic" is through the Factory moved to Asia, so that lower production costs. According to the British "Financial Times" reported that since 2000, Coach Factory will be more than 90%gradually moved to the country of cheap labor such as China, Indonesia and Turkey. "Over the past five years, gross margin from 64 percent immediately pulled 77 percent." In addition to Asia, Frankfurt also boldly discarded the past Coach takes pride in the traditional manual, semi-mechanized production start.
Changes in the production of logic, let Coach of the ratio of operating costs, from 1997 dropped 42 percent to 22 percent of 2006. to grasp the accurate pricing and market demand
Key: everyday consumers worldwide to do the interview
Compared to brands such as LV insist do not want to set up production bases in China, worried about "Made in China" brand to reduce the charm, Coach is the adoption of five million U.S. dollars spent annually in the world for more than 20,000 consumers in the city of people tune with accurate figure of the market to manage the brand.
So a year ago, Coach can be better next year on the planning required by the design of models with each of the consumer market demand quantity. Even be more careful to speculate in every country women of different age, a year will buy some bags? And the average unit price for that? Management so that it can figure accurate pricing and cost control. Coach and cost control at the same time, does not mean that quality discounted, leather goods factory in New York or just before the election 10% good quality materials, and supervision by the 38 to do more than 20 strict control and Detect.
While the other end, Coach is a generous budget is to create advanced image and put the last five years the average annual increase of 37% Maori input "sales, marketing and advertisement design." In other words, every extra hundred dollars to come up with 37 yuan Maori brand marketing, in particular, focus on the Asian market.
JAPAN lens shift. Here are the world's largest boutique market, six years ago the Japanese boutique market at the beginning of the top ten in C and only Chanel. Coach since its establishment five years ago after the Japanese subsidiary, last year one of Japan's top ten runner-up boutique brand, second only to LV. And Japan over the past five years accounted for revenue from the company's overall revenue growth in the single digits to 22 percent last year. Seize the enormous spending power of the Asian market (it seems comparing the Asian market formidable, who captured, who will be able to make money)
The key: Open the shop next to LV
In addition, the constantly expanding with LV clenching tightly. Coach in Japan are able to jump up the main reason for red. LVMH revenue is only one tenth of the same flower Coach has dared the expensive rent at LV flagship store to open next; are all five-year Coach Lane boutique brand in Japan, the fastest in a shop, a total of 104 stores, including 7 flagship store, the sales shop or the flagship store are all adjacent to LV, in accordance with Coach2003 financial year, when an exhibition in Japan every shop will be 6.56 million U.S. dollars to spend. At LV side of the leading boutique shop, consumers will be shaping the minds of LV at the same level with the impression, but the price of most one-third as long as the LV.
And in order to meet the monthly listing of new products, Coach will be global simultaneous replacement store furnishings such as sofa position,, etc., but also by the global headquarters of unified planning, decorating each month to send parcels, there are the focus of the month display position and display map, and even music also have global harmonization.
"Knead boutique charm and new production, marketing logic, let Coach in the emerging Asian markets, cultivate a new group of growing consumer group." Bickley noted. to Goldman Sachs in 2004 global boutique market report, the global Chinese market has accounted for sales of industrial products 12%, after two years more to reach 20%, is expected in 2015, together with Japan as the world's largest single market products. At a long tradition of European and American products, first-line brand and second-line brand and clear, but in emerging Asia, consumers are new, all wars are start from scratch.
It is precisely because of Frankfurt LV even make the president's decision not dare to do, to create a production base in Asia, but also to seize the potential outbreak of the Asian markets before the Coach can be from Japan, China, Hong Kong and Taiwan areas of brand names, becoming the growth engine of Coach . Revenue in Japan as an example, from 2001 to 2006 growth of 722 percent, reaching 420 million U.S. dollars, over the same period 25 times the growth of the Taiwan region - 15246
However, after six years, Coach has become the United States Wall Street luxury brand "legendary" stock market in 2000 from two U.S. dollars to the present prices of 30 U.S. dollars, growing 14 times. Brilliant performance, but also let his sixty-year-old Frankfurt crowned "Forbes" Last year, America's most well-paid (including dividends) of executives sixth year, from 86.5 million U.S. dollars. The investing public all over the world are asking: How can the brand at just a few years to create this score?
Positioning "can easily have" the luxury brand
Key: substantially lower costs
The key change is that CEO Frankfurt in 1999, decided to give it a new brand positioning, as a "can easily have a" young luxury brands (affordable luxury), the same time, he changed the production of logic, significantly reducing production costs, so that Coach Price to decline, and re-allocation of resources to the powerful on brand marketing.
Such as the Ministry of Overseas Coach Ian Bickley, president (Ian Bickley) said: Coach's success formula is to "balance magic and logic!" (Balance of magic and logic!), In other words, the balance of the "Low Price" , "a sense of luxury" at the two ends of the original conflict.
Generally speaking, the luxury brand in order to maintain the distinguished brand impression, have insisted on hand-made, the price is also noble. A small banquet package, LV (LVMH Group's main brands) about 5,000 yuan (RMB) about a university a considerable fresh person's salary for two months (meaning you Chinese). LV and Coach as long as less than half the price. However, open financial statements, its gross margin because there is no driving down prices;
Since 2001, Coach's gross margin 64%, higher than 62 percent of LVMH, and all the way up this year, up to 77 percent margin. Behind the "logic" is through the Factory moved to Asia, so that lower production costs. According to the British "Financial Times" reported that since 2000, Coach Factory will be more than 90%gradually moved to the country of cheap labor such as China, Indonesia and Turkey. "Over the past five years, gross margin from 64 percent immediately pulled 77 percent." In addition to Asia, Frankfurt also boldly discarded the past Coach takes pride in the traditional manual, semi-mechanized production start.
Changes in the production of logic, let Coach of the ratio of operating costs, from 1997 dropped 42 percent to 22 percent of 2006. to grasp the accurate pricing and market demand
Key: everyday consumers worldwide to do the interview
Compared to brands such as LV insist do not want to set up production bases in China, worried about "Made in China" brand to reduce the charm, Coach is the adoption of five million U.S. dollars spent annually in the world for more than 20,000 consumers in the city of people tune with accurate figure of the market to manage the brand.
So a year ago, Coach can be better next year on the planning required by the design of models with each of the consumer market demand quantity. Even be more careful to speculate in every country women of different age, a year will buy some bags? And the average unit price for that? Management so that it can figure accurate pricing and cost control. Coach and cost control at the same time, does not mean that quality discounted, leather goods factory in New York or just before the election 10% good quality materials, and supervision by the 38 to do more than 20 strict control and Detect.
While the other end, Coach is a generous budget is to create advanced image and put the last five years the average annual increase of 37% Maori input "sales, marketing and advertisement design." In other words, every extra hundred dollars to come up with 37 yuan Maori brand marketing, in particular, focus on the Asian market.
JAPAN lens shift. Here are the world's largest boutique market, six years ago the Japanese boutique market at the beginning of the top ten in C and only Chanel. Coach since its establishment five years ago after the Japanese subsidiary, last year one of Japan's top ten runner-up boutique brand, second only to LV. And Japan over the past five years accounted for revenue from the company's overall revenue growth in the single digits to 22 percent last year. Seize the enormous spending power of the Asian market (it seems comparing the Asian market formidable, who captured, who will be able to make money)
The key: Open the shop next to LV
In addition, the constantly expanding with LV clenching tightly. Coach in Japan are able to jump up the main reason for red. LVMH revenue is only one tenth of the same flower Coach has dared the expensive rent at LV flagship store to open next; are all five-year Coach Lane boutique brand in Japan, the fastest in a shop, a total of 104 stores, including 7 flagship store, the sales shop or the flagship store are all adjacent to LV, in accordance with Coach2003 financial year, when an exhibition in Japan every shop will be 6.56 million U.S. dollars to spend. At LV side of the leading boutique shop, consumers will be shaping the minds of LV at the same level with the impression, but the price of most one-third as long as the LV.
And in order to meet the monthly listing of new products, Coach will be global simultaneous replacement store furnishings such as sofa position,, etc., but also by the global headquarters of unified planning, decorating each month to send parcels, there are the focus of the month display position and display map, and even music also have global harmonization.
"Knead boutique charm and new production, marketing logic, let Coach in the emerging Asian markets, cultivate a new group of growing consumer group." Bickley noted. to Goldman Sachs in 2004 global boutique market report, the global Chinese market has accounted for sales of industrial products 12%, after two years more to reach 20%, is expected in 2015, together with Japan as the world's largest single market products. At a long tradition of European and American products, first-line brand and second-line brand and clear, but in emerging Asia, consumers are new, all wars are start from scratch.
It is precisely because of Frankfurt LV even make the president's decision not dare to do, to create a production base in Asia, but also to seize the potential outbreak of the Asian markets before the Coach can be from Japan, China, Hong Kong and Taiwan areas of brand names, becoming the growth engine of Coach . Revenue in Japan as an example, from 2001 to 2006 growth of 722 percent, reaching 420 million U.S. dollars, over the same period 25 times the growth of the Taiwan region - 15246
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