Coach China Rises 10%, Bid Farewell To 3000 Yuan Stalls.

Coach ushered in the first price increase this year. In October 17th, the Beijing commercial daily visited a number of Coach stores in Beijing, and found that most of the bags and garments increased by about 10% except the new ones. There were few commodities under 4000 yuan in the shop. Along with the Tapestry acquisition of Coach's parent company, integrating KateSpade and StuartWeitzman, core brand Coach also tried to attract young people by many means, and strengthened the position of light luxury. However, the huge price gap with the country of origin makes Coach China's ole channel consumption more powerful, and the one thousand or two thousand yuan product impression is more deep-rooted.

As for the reasons for the price increase, some stores said: the exchange rate changes lead to price increases. The Beijing Commercial Daily reporter visited the Coach double security mall store that, since October 17th, except for the latest and individual styles, the price of products in Coach stores has almost risen by 10%. Coach double an mall store sales said: "since the price increase, almost 3950 yuan of products have changed to about 4500 yuan, and there are almost 3000 yuan stalls in the store."

For the price increase news, Coach Oriental Xintiandi sales consultant said, at present, only a small part of the store's price rises, not much.

Offline stores are experiencing price shocks, and online prices are also changing. Tmall flagship store customer service said that the goods in flagship store were sold at the unified retail price in the mainland. Due to the price rise of raw materials and the change of global currency exchange rate, some commodities in Coach were adjusted, so that the goods purchased by consumers would be more value preserved.

The price of the store has changed, but the ole store has not changed. Coach first sold the ole shop, told the Beijing Commercial Daily reporter that the price of the commodity tag has not changed in the past week, and the specific price is determined according to the discount strength of different periods.

For the issue of price rise, Coach mainland brand consulting customer service said that the relevant notice was not received for the time being, and the price of the entity store was the standard. The Beijing Commercial Daily reporter contacted Coach China responsible for many times by phone and email, but as of press time, it has not yet received corresponding reply.

Recently, fashion brands have risen a lot, but most of them are luxury goods. It is understood that around May this year, Chanel, Cartire, Hermes, Dior and Fendi and other brands have some products to raise prices, an average of around 5%. Prior to that, Ferragamo rose 10% in November last year, and the recovery of these brands was mostly due to rising global raw material prices and increased labor costs.

"Light luxury products are not clearly discriminatory and are easily replaced." Zhang Mengxia, director of the China luxury Research Center at University of International Business and Economics, points out that Coach will not blindly raise prices, because the brand has accumulated some experience in using social media to make the market, and its CRM system is linked to sales. If a large number of data is obtained, a fixed customer can accept the risk of price rise. This action is operable, but without any reliable market data, the price will lose customers.

Zhou Ting, the president of the luxury goods field and the Research Institute of Beijing, told the reporters of the China Daily News that there are two main reasons for the rise in brand prices. One is the routine price hike to create the impression of preserving value; the two is the change in the price of raw materials and the exchange rate, which increases the cost of products. Under the trend of global price integration, the strategy of brand price increase has no significance in enhancing brand value.

To enhance brand value and create a unique competitive advantage is the key. Zhang Mengxia said that Coach is more substitutable and discriminatory is not particularly clear. Compared with the luxury products such as LV and Gucci, Coach is easy to be duplicated compared with the star products. Consumers will choose other brands to compare with them. The substitution will gradually increase.

Zhou Ting told reporters that light extravagance is mostly a false concept, mostly using the consumer's low awareness of brand and the primary creation concept of the market, relying on the main brand design and the three line price to attract consumers. At present, the performance of light luxury brands is not good in the market, because in the short term consumers think that such a brand has cost performance, but in fact, with the improvement of cognition and the material and workmanship of consumers, consumers will gradually find that light luxury products are not luxury goods category.

Zhang Mengxia believes that Coach is fairly good in light luxury brands, and its popularity is high. But the common character of Chinese consumers is to seek maximum value of products and pursue brand value on the basis of price. Coach is the most popular choice for consumers to choose brands. More and more consumers will buy Coach first, but the rate of re purchase and long-term holding is still hard to decide.