Abstract: from discounts to closed shop out of business, the situation of luxury goods in China are no worst, only worse.
from discounts to luxury closed shop out of business, the situation in the country no worst, only worse.
recently, light luxury brand COACH stores closed its Hongkong queens road central. Almost at the same time, COACH low-key return to Tmall, ready for its second trip to China’s electricity supplier. In contrast to the two is that the former is a symbol of dignity and glory, the latter is the luxury brand is extremely reluctant to touch the reef. I would rather lose lining, not lose face.
with the recent decline in performance, luxury brands began to re-examine the Chinese market. Electricity supplier is no longer cheap, fake and cottage gathered in the opposite direction of infiltration in the business of each capillary. COACH is not the first to put down the image and feelings of the brand, of course, is not the last one.
continue to shut shop
in early 2008, COACH rented in Hongkong, Queens Road Central, a shop, here is a big gathering, heavy traffic. At that time, the price of HK $2 million 600 thousand / year, and 2012 renew, the rent has reached HK $5 million 600 thousand, plus external advertising amounted to $7 million 200 thousand, almost 3 times that of 2008.
however, the surge in the cost at the same time, COACH led the international light luxury, luxury brands in the revenue does not have a corresponding rise, and gradually slowed down. As of June 27th, COACH fourth quarter earnings report, China’s fiscal year sales for the first time a single digit growth in fiscal year 2015 sales growth of only $9%. The corresponding fiscal year 2013, fiscal year 2014 sales growth of 25% and 40%, respectively.
this is the direct fuse of the shop off. Originally scheduled for October 2017 term 2 years early termination. COACH in the message sent to all members of the Hongkong, the central flagship store two years ahead of schedule, and in August 31st formally completed. "Although COACH claims to the outside world, it is in order to optimize the structure stores, but the fundamental reason is to make ends meet.
for luxury goods, the store is a double-edged sword, not only to open the consumer’s wallet, but also because of the high cost of damage to their own. Compared to other brands, luxury brands have chosen in downtown shopping malls and shopping centers, sales staff, store decoration style known. Now these have become a serious burden of performance downturn. Luxury brands will also be resorted to "optimize the store structure" banner, to close the stores.
it is understood that in 2014 is the most closed year of luxury stores, including Hugo Boss and Ferragamo were closed 7 stores and, Zegna closed the 6, Burberry off