Something about Coach Given by President of Asia
Thank you for the interview, my first question is, China's luxury market is just emerging in recent years, how would you evaluate the current situation and gaps in terms of scale and other market?
First, I think that in the past few years, China's luxury market is growing very rapidly indeed. We expect that in the coming years it will be faster development. The current global luxury handbag and accessories market size of about $ 4 billion annually. We estimate that by 2013, or three years later, the entire global luxury handbag and accessories market will grow to twenty-nine billion U.S. dollars At present, the Chinese mainland and Hong Kong, accounting for about 10%, handbags and accessories market. In 2013, this proportion will rise to 20% of the pen. In the next three years to expand share from 10% to 20% from this perspective, China's growth rate is very rapid.
Now you can explain why the coach outlet current business conditions?
We estimate that the coach outlet of the Chinese market share of about 3% -4%. Currently, we have 37 stores in China, including Hong Kong and Macao, and 12 in the rest are in mainland China. Since April 2009, we have the right to acquire from dealers operate independently of the operating time of the year, we have done a lot of investment, including personnel training, team, investment in infrastructure, investment and investment in marketing and distribution channels store. Today you know that in China we will announce our first global flagship store opened in the middle of Huaihai Road. This is our largest store in China, covers an area of 650 square meters, the entire store has a new design concept, but also has a strong spirit of New York City and dynamic. I hope you have time to look, really is a very good restaurant.
I would also like to ask the coach's future expansion plans in China can tell us?
We want to build China into our third most important market. Currently, we are in the United States of America's business is very successful, but still in the U.S. luxury handbag and accessories market brand ranked first, accounting for about 31% of the market share. Our business is also very successful in Japan, Japan ranked second handbags and accessories brand with a market share of 14%. We plan to establish China as a very important market. Our fiscal year ends in June. We hope that in the coming year in China, at least more than 20 stores, end of fiscal year 2011 at least 50 stores in mainland China. Our goal is to coach bags the next three years to become China's three major luxury handbags and accessories brands. In the 2012 fiscal year ending in 2012 to 2013 in China's sales reached $ 250 million. Our development plans in China are magnificent.
You mentioned this before the next meeting many shops in China, I would like to ask which city stores may do in China, More emphasis on first-tier cities, or two or three tier cities?
Because, these stores will cover the entire China, but we can pay more attention to two or three tier cities. We have in the main first-tier cities have a very reasonable commercial layout and network, so we will focus on two or three tier cities.
You're like a potential market for the luxury market in two or three tier cities purchasing power?
We believe that this market opportunity is still very. In fact, the number of our target customers about 14 million, there are basically a certain income are also very concerned about the international brand of women in this city. According to our estimates, if we look at the 14 million population growth rate this year than last year, an increase of 40% in the next five years, our target market will be increased to 120 million the number of people, therefore, the future development of the market potential is enormous, we believe that the future growth potential may be more from this in two or three tier cities, because there are a lot of first-tier cities covered by international brands.
Coach factory outlet in China’s expansion process has encountered difficulties and challenges, can you tell us?
The Chinese market is very large and growing Chinese consumers are very welcome to our coach this brand in the past year, our sales in China, double-digit growth in same store level, we have done in China Many consumers research activities through consumer feedback, we have found that consumers really like this from New York fashion brand. Over a period of time, we do a lot of different activities in China; I think our biggest challenge is to find the most suitable and best talent to serve our customer service. In fact, find a storage location and is not a problem, there are many opportunities in China, many department stores boss will come to America. An unusual biggest advantage is that we are, we can provide high-quality services, but also give consumers a good experience, so our biggest challenge is how to find the batch after batch of talents, and let them quality service and good customer experience for consumers. We have been very difficult to find staff, to train them, training, hoping to achieve this goal, we provide a better experience for consumers.
As far as I know, the coach is very willing to throw money at the consumer market research; I would like to ask the survey data for the Chinese consumers and U.S. consumers, what is the difference between them?
First, there is little communication between people and consumers, we will discuss some of the interviews, web surveys and in some stores and consumers to communicate, understand their needs, their attitude, some of our brands. This will ensure that our brands and products we offer is really what they want, but we must ensure that our communications and these messages can produce some correlation between them.
We also found that China's young women and women of other areas the world there is nothing particularly big difference, that is, from their attitude angle demand for the product, they are very international. Our main conclusion from a consumer survey of Chinese women is a very open mind, in judging process is very confident, very independent. In addition, they will not follow her mother's generation rules.
Long story short it from New York fashion brand itself is very inspiring qualities is very popular with female consumers of these very independent, self-confident to greet him. In addition, from this perspective handbags, we also found that Chinese consumers want fashion handbags, can produce a strong emotional connection, on the other hand, I hope it has powerful functions. At the same time reflect the personality, handbags have strong function: You can also use friends in the evening commute. So we do a lot of products, this diversity, a variety of occasions, but also for work and social occasions to work.
Then you can tell us about the building layout and relevant strategies to improve the channel cannot be a single storage performance?
How to improve same-store sales strategy, I think one of our strategy is product innovation. Coach bags outlet has been working very hard in this regard, spent a lot of really, flagship store in Shanghai will have some limited edition handbags products, hoping this afternoon you to our flagship store can be seen. In addition, we project the stars and some artist’s handbags and co-stars, four stars handbag bags have limited production, only in Chinese stores. Star portable items from China and the United States and our nearly 60 artists, co-star of their design patterns, each design of the bag body we are not the same. Starting today, these handbags auctions sina.com.cn, then we will choose four limited production and sales outlets in China.
About the production is the number of four handbags?
Many people believe that coaching is a fashion brand, not a luxury brand; I would like to ask your opinion?
I think it depends on how you define luxury brands. I think the quality of our products and some European luxury brands, even higher than some brands, our price is only half of the people, so that our brand is more readily available, or more people. In addition, we emphasis on product innovation, we are better than other brands, innovation fast, launched a new product every month, and our entire shopping environment can also provide consumers with high-quality customer experience. I hope you can feel our flagship store. I think these are very important element of luxury, so we are very confident that the coach is a very comprehensive popular sentiment, but also a luxury brand.
Then you want to coach in the minds of consumers establish brand image,?
We want consumers to be able to put us from New York as a high-end fashion brand of pure New York. We do a lot of consumer research to understand our brand image in the minds of consumers. We found that most consumers can identify, but also from New York and has a very rich historical heritage, when it comes to some of the specific elements of the New York fashion brand representatives, including independent, energetic, cheerful and confident. These elements resonate in the minds of consumers; I think this is what we hope to bring the consumer image. Thank you for the interview.