Kate Spade And Light Extravagance Will Also Be Pformed!

Kate Spade is also saying goodbye to light luxury, and one of the most powerful brands in China will also be pformed.

Kate Spade set up a children's product line in February, which is expected to open more stores this fall, and is expected to add a baby product line.

It will reduce the sale of discount products on the electronic business platform and the discount of department stores.

Fashion trends come and go quickly, and many brands lose their way in the trend of coercing.

Kate Spade is trying to avoid this.

In 2014, sales of Kate Spade amounted to $1 billion 200 million, an increase of 42% over 2013.

Kate Spade has just released its latest quarterly report, with sales amounting to 2.55 billion, a steady increase of 14%, but the group's net loss is $55 million 221 thousand.

There are two main reasons for net loss. The Greater China area is E-Land.

Chinese companies pferred to Kate Spade & Co. and Lane Crawford Joyce Group subsidiary Walton Brown set up a joint venture, resulting in expenditure of $26 million; closure of Kate Spade Saturday, shop entities, and the cost of the company.

Affected by this, the gross profit margin of Kate Spade & Co. fell to 60.6% in the first quarter.

Analysts believe that the closure of Kate Spade Saturday and other shops allows the group to concentrate on the operation of the core brand, and avoid similar situations like Coach and Michael Kors.

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For example, too fast market growth means a potential downturn.

Coach and Michael Kors are both too popular to lead to ambiguous brand positioning.

Kate Spade is worried about this problem. Its strategy is to ensure the uniqueness of the brand.

At yesterday's morning meeting, Kate Spade said that it would reduce the sale of discount products on the e-commerce platform and the discount of department stores.

For retailers, it is very difficult to throw away the fat before eating. After all, discount sales can boost short-term sales.

But Kate Spade firmly believes that the discount of e-commerce and entity stores will dilute its brand value and guide consumers to buy their full price products.

In addition, Kate Spade is also controlling its low outlet store expansion.

"It's about brand image and brand awareness."

Kate Spade general manager Craig Leavitt told investors at the meeting.

To maintain its brand image, Michael Kors wants more people to buy its new product, such as the $298 leather bag.

Kate Spade has adopted different strategies. It wants to lock core customers but develop new product lines.

"They really know what to sell by" beating around the Bush ".

Nomura Securities International's retail expert Simeon Siegel said.

In February, Kate Spade created the children's product line.

Kate Spade said the product line was performing well and is expected to open more stores this autumn, and it is expected that the baby product line will be opened.

In addition, we also consider adding accessories and jewellery series to the wedding market, and home decoration products will also be included in the 2015 year plan.

Simeon Siegel said, "Kate Spade is doing this to export its lifestyle values."