ugg Betting China

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Overall recession
"The economic crisis is certainly the influence of our consumers." On April 30, Coach (New York stock exchange transaction code: COH) China and Japan district President and CEO Victor -louis (the Luis) on our correspondent says with the estate of falling, consumer feel wealth shrink, affirmation will directly influence the consumer confidence, and buy luxury goods are produced when hesitation.
American store and Europe to the closure of the factory, so ripe. But, including China's emerging markets, becomes the new hope Coach keep growing.
Entrusted by the Italian luxury-goods firms federation, bain inc., according to a report released, facing the global financial crisis,[link widoczny dla zalogowanych], even the richest consumers in spending cuts, which may lead to global luxury retail market in decline in 2009.
Compared with shrink wealth, consumer confidence and psychological suffered even more serious. This round of economic decline in consumer wu tight pouch of department stores were forced to provide substantial discounts for and clearing the inventory, luxury business quarter sales reports have not optimism.
Previously, American fashion high-end brand Coach published quarterly reports showed that caused by downsizing and closing storefront the influence of cost, plus the consumers in the economic crisis before deep cuts in spending, its earnings year-on-year profit by 29%, MAO shrink from the same period last year fell to 71% of 75%.
But the world's largest luxury-goods groups LVMH also on April 30th, announced by international financial crisis of continuous influence, January 2009 to march, the group of sales value 40.18 billion euros, compared with the same period last year, a small increase 0.4% appeared "slowdown" phenomenon.
A personage inside course of study points out, high-grade luxury because history is longer, the customer brand loyalty degree is higher, thus demand of rigid than low-grade luxury,[link widoczny dla zalogowanych], stronger, the corresponding its ability to resist a recession is stronger.
So, Coach the positioning in "available luxury", price is traditional European luxury brand around half of the brand, its ability to resist crisis of how?
Victor give reporters show a data show that from 2009 first-quarter sales figures, Coach in the United States and Japan market performed better than average market level, the quarter in the American market sales decline was only 1%, in the Japanese market even up 1%.
"Coach's advantage lies in the innovation and introducing new speed, it makes the company can win more consumers." Victor says, in order to let consumers always keep fresh feeling, Coach need every month launch new products,[link widoczny dla zalogowanych], the company will pay special attention to product development cycle.
Betting China
Luxury traditional sales market is the United States and Japan,[link widoczny dla zalogowanych], but the emerging markets including China, with more and more attractive.
The foregoing bain company report said that although the whole luxury market 2009 will face 6 years first a recession, but Brazil, Russia, India and China in the emerging market consumption, will continue to increase.
The world luxury association of the report notes that, China in the global luxury consumption share increase year by year,[link widoczny dla zalogowanych], accounting for global market share of 18%, become after the United States and Japan's third-largest luxury consumer.
"The past 3 to 6 months, beyond China other markets are shrinking." Victor tells a reporter, the first American and Japanese markets have been shrinking, while Chinese luxury market still maintained double-digit growth.
Is in view of this, in the global cut costs under the background of the Coach at showering acquired China business agent, completed in by "agent" to "retail" transformation.
On April 1st, the Coach announced to HongKong oxpoint think group in mainland China retail business in the second stage of the buyback. The buyback including 17 home retail. September 2008 recovered from the distributors of Hong Kong and Macao retail business, thus, the Coach after the comprehensive repurchase has finished.
This act shows that the Coach will be in China ramping up. Frankfort, also said the global economic slowdown will further enhance the importance of China for luxury industry -- not just as a manufacturing center, more important is as a growing consumer market.
"We have ready, the Chinese market fight a third pillar, continuation Coach in the United States and Japan's success." Frankfort announced on acquisition agreement said. After all, February business would make more money, to make faster and better avoid agent in order to pursue the short-term interests, the damage of the brand image problem.
Although, victor said transformation "retail" do exist risk, but China market opportunities are too big, so that the company "willing to accept the risks and challenge."
Relatively sl[link widoczny dla zalogowanych]ish global other market ", "even slide, Chinese market middle class and new rich class's growing steadily, let brand traders big feeling. Victor told reporters that Coach in China at present target consumers are aged between 25 and 45, about 600 million female, the target group is expected to begin in the next four years after (until 2012) reach 16 million in 2020, more than 60 million.
Frankfort has announced that Coach plan in the next five years in greater China open another 50 stores,[link widoczny dla zalogowanych], the greater China outlets number will more than 75 home.
Low figure
Compared with the traditional European luxury brand, besides updating style even faster, Coach advantage lies in the lower prices. In the face of economic recession, promotion and introduction of much money Coach choose low-cost products, is one of the measures. This is the sales changed, but the money clear declining important reasons.
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