COACH Beijing Xinguang Tiandi New Retail Concept Store Opens

"Brand strategy is positioned in modern luxury".

COACH Beijing Xinguang Tiandi store has a dark shade of city theme window, a fluorescent color department of bicycle and bag layout, new men's clothing and clothing area in the store, leisure sofa and tea table in the corridor.

The display of the new store is quite different from that of the old white style.

This is the new retail store design concept introduced by COACH's new creative director, Stuart Vevers, in line with brand promotion strategy and new product style.

It is also another node of COACH's strategy of brand pformation in the world after the launch of the first design series in September Stuart Vevers.

Yang Baoyan explained that the new positioning of modern luxury is designed to inject new vitality into the brand so as to enhance the brand's yearning for consumers and further increase their affinity and interaction.

He said, "brand pformation" strategy is a comprehensive long-term strategic planning, will also support a series of comprehensive measures, in all aspects, through products, stores, marketing three aspects to reshape the brand fashion relevance, and strengthen the emotional connection with consumers.

"We will not leave the market positioning of the luxury that we have created and led. The brand upgrading brought by the brand pformation strategy will inject more fashion vitality, which will enable COACH to better meet the fast changing needs and expectations of consumers.

Modern luxury new

Let the brand be more personal and more distinctive.

Yang Baoyan expounded the purpose of pformation.

"This brand promotion will not raise prices".

During the period, some analysts and media said that COACH's "brand pformation" and upgrading of the storefront were related to the promotion of product prices.

Beijing Commercial Daily reporter noted in the shop that some leather bags are priced at more than 7000-8000 yuan, and there are also small handbags and small leather goods priced around 2000-3000 yuan, and some accessories cost around 1000 yuan.

In this regard, Yang Baoyan said that this round of "brand pformation" is to enhance the brand, but it does not mean that the price increases.

COACH has indeed expanded the product line with multiple levels of price, with the aim of attracting a wider customer base and not merely raising the price of the original product.

He said, for example, the price of a bag includes all the characteristics of the product, such as design, leather, craft, hardware fittings, etc. these combined factors determine the final price of a single product. COACH is committed to providing better added value to the original product price, which is more fashionable and superior in leather design, and will also introduce some styles that cater to high-end consumer groups, such as new leather materials and more exquisite ones.

Accessories and more complex products will be sold at a relatively high price.

Nowadays, domestic consumers are more concerned about the cost performance of products.

"This is a manifestation of maturity, not a crisis, but an opportunity for COACH". He revealed that COACH has the same raw material supply channels as some European luxury goods, and has a first-class quality, superb technology and thoughtful service, but the price is only about 40%-60%.

The relatively friendly price and precise positioning enable COACH to attract more customers and grasp the potential of the rising middle class.

Although China's market environment is at a slower growth stage, China is still the most important and potential overseas market for COACH.

Data show that the overall sales volume of COACH 2015 in the first quarter of fiscal year was 1 billion 40 million US dollars, down 10% compared to the same period last year.

But sales in the Chinese market increased by 10%.

"The Chinese market is still very exciting," Yang Baoyan said. China has more than 200 cities with a population of over 1 million, far exceeding that of the United States and Japan, while COACH's awareness of non prompt brands in China is currently only 18%.

While China's middle class continues to grow, the pace of urbanization is accelerating. The potential of China's two or three tier market can not be ignored.

The precise positioning of COACH, which represents the pure New York style, quality craft quality and affinity price, will coincide with the development of this market.

As for the slow growth of performance, this is the "new normal" that the mature market should have. It represents stability and potential.

"And the Chinese government's views on economic development are the same. Compared to the speed, we pay more attention to the quality of development."

Yang Baoyan commented so.

According to the plan, COACH expects to open about 60 new retail concept stores around the world in fiscal year 2015 and complete the upgrading of some 150 stores.

Among them, 20 new stores will be opened in the mainland of China.