Coach: Subdivides Luxury With "Fast Fashion"

Small crowd, limited price, high price. Although this method is always stereotyped and arrogant, it has long been considered the essence of the sale of traditional European luxury goods.

In the 90s of last century, European brand luxury goods invaded the United States. The Coach brand was born in New York, and the situation of Lew brand was in jeopardy. The leader Frankfort began to fight against the trend. He used the "take in" strategy and used the "fast fashion" marketing mode to wander around the edge of luxury goods. The price is high, but it can be "climbed"; the price gradient starts from the entry level, and steps up before entering the luxury hall; breaks the luxury custom of launching new products according to the seasons, renewing the shop windows every month, and finding the young people's changing heart. After entering the Chinese market, Coach's "fast fashion" mode has become a new luxury marketing mode. But nowadays, the "fast fashion" mode is no longer the "exclusive angel" of Coach. Many luxury goods have begun to learn more or less from the "fast fashion" mode.

Luxury goods

Speaking of European luxury goods, no matter which family, there is a story with royal royalty. Red tape continues to this day. Products must be expensive and services must be self respectable. Until now, creating a sense of mystery and a sense of scarcity are essential tasks.

The traditional way is to use "basic money" to run the luxury goods, and use the "limited amount" to raise the price. Before certain festivals, it is necessary to increase prices according to usual practice, thereby demonstrating its "value preservation" function.

Coach has positioned its customer base among 20~45 year old professionals. They graduated from university and worked in cities. Love fashion, design, product technology is also very picky. In China, the average monthly income of the group is 5000 yuan, which may be lower in the second tier cities.

In order to cater to the demand, Coach from the United States and Japan to China set their price at about half of LV and Gucci, and at a certain time, they did not hesitate to offer a discount.

In order to cover a wider customer base, Coach divides its products into four series, with different prices and designs. Among them, the Madison series is priced at 4000~7000 yuan, aiming at the general demand for daytime work and evening parties. The Poppy series is relatively young, more lively and interesting design, priced at between 3000~5000 yuan. In addition, Coach has specially designed some "limited edition" products, priced at over 10000.

In fact, European luxury goods are also closing the gap with consumers in a flexible way. CEO, Lu Qiang, an industrial agent in Shanghai, is an agent of several European luxury brands. He told the China business newspaper reporter that a brand like LV, Gucci and Prada are often designed for the same handbag, offering large, medium and small models, and the price gradient is opened, so that fans with limited economic strength can have a mini product or a lower price accessory.

The so-called "sub card" has also become a fashion. One of the best examples is PRADA. Its subsidiary brand MiuMiu is faced with a lower age group and a weaker consumer group. The price is lower than the "main card", and the market response so far is very good.

In fact, as early as 1981, Giorgio Armani launched its sub brand Emporio Armani, which brought huge market profits and growth. Today's imitators, besides PRADA's MiuMiu, also have Hermes's "up and down" Donna Karen's DKNY.

Continue to hold the aristocratic airs, may lose the hot mass market. A more intimate and more expensive pricing model is a smart strategy.
 

Consumption guidance design

In 2010, Hermes launched a sub card "up and down" for the Chinese market. Please come to Chiang Qiong, a designer from a Chinese art family. The brand takes the Chinese culture and art as the core. For a while, the industry was amazed that a luxury brand is changing for a particular country.

The consumer group is too narrow to pursue the "design guided consumption", not paying attention to the needs of consumers. Many big designers have distinctive personality, because design concepts are too deviant, and designers and brands are also very few examples. Alexander Makun, the designer who had already left the world, had to repeatedly change jobs before he died.

Victor Luis said that Coach chose "consumption guided design". In fiscal year 2010, Coach surveyed more than 50000 consumers worldwide, including 8000 customers in China. Coach spends a lot of energy on consumer research every year, which is quite different from the designer's European luxury brand.

The survey found that Chinese people had fewer credit cards and more cash, and the face value of the renminbi was smaller than that of the US dollar, so Chinese men preferred the wallet with zipper length and zipper. American men are used to putting their wallets in trousers pockets. Chinese men prefer to put their wallets in their backpacks. Because Chinese men take the subway frequently, they prefer to use a satchel.

Coach also found that the big difference between the Chinese market and many other markets like Japan is that a lot of Chinese women are working. As a result, Chinese professional women need a handbag that can be used for small gatherings or dates when they are in the office and after work. At the same time, this handbag is fashionable enough and has enough functions. Coach has used these findings in product design and development processes.
 

Refuse to update monthly according to "season"

Even if they do not enter the shop, the shop window image also has important psychological impact on the flow of people. Whenever Coach's design team introduces new design works, it will soon appear in the Coach store windows around the world. It took a lot of thought to put the place in place. Coach tried to set the sights on the new product when the customer entered the door. To ensure that fans who visit frequently can also see changes.

Coach is keen to study raw materials and often introduce new materials that did not even exist months ago. The biggest difference with European luxury goods is that the launch cycle of its new product is only one month, and the windows of each month are quite different from that of last month. This speed is close to ZARA, H&M and other fast fashion consumer goods. The new European brand is based on the "season" period. For the four seasons of a year, it shows up in fashion week one year ahead of schedule, and the next year can only appear in the store.

On the one hand, the European brand is pushing the new product cycle long. On the other hand, the number of new products in each season is very limited. In the store, the dominant factor is the classic "section" which has been extended for many years. Many of the materials, designs, designs and symbols that are considered to be classic are persisted and retained.

There are only four seasons in a year. The design of the product pays attention to artistic value and refuses mass production. Coach absorbs a lot of fast consumer brand experience, breaks the seasonal tradition, has many styles and updates quickly, and likes the chameleon to please consumers.

Coach's design team is stationed in New York headquarters. The team has been immersed in the New York style fashion for a long time, looking for inspiration in the world famous Central Park and its surrounding areas. New York is a melting pot, and fashion elements from all over the world are gathered here. Coach tries to continue the good tradition of an old brand store and become a vogue for fashion.

Coach has been trying to strike a balance between "magic" and "logic". The product is attractive and reasonable, and it has higher cost performance than European luxury goods.

Three principles of "fast fashion" luxury marketing

1, the price is high, but it can be "climbed".

2, start the price gradient from the entry-level stage, and take a few steps before entering the luxury hall.

3 break the habit of introducing new products according to the four seasons, update the shop windows every month, and make the young people feel more and more happy.