Experts in the field of luxury goods, president of Fortune Character Institute Zhou Ting believes that the development of the state of Kate Spade and slow expansion in recent years of a relationship. “Light luxury brand ups and downs for two main reasons, one is crazy expansion cause serious damage to the image of the brand, the second is the quality of products, product design and innovation ability to keep up with the pace of expansion.”
For light luxury brands, the shop within a certain time effectively increase market share, but it also means a potential decline. Coach and Michael Kors rapid expansion into the Chinese market, and even the former “30 shops per year” the speed of market expansion. Analysts believe that the crazy expansion resulting in a large backlog of inventory, capital investment is required to compressed margins.
Zhou Ting believes that consumers love Coach and Michael Kors did not have continuity. JP Morgan analysts also said that the direct cause of low-cost discount is the later of the two, not the brand value. Statistics show that only 21% of consumers choose to buy because of the brand and Coach, Michael Kors while only 12%. Retail expert Robin Lewis said, “such as Michael Kors too popular brand originally wanted to please the consumer, but suddenly realized that consumers can see it everywhere, and everyone is using it. Brands do not have any special meaning . “in contrast, Kate Spade brand is more focused on young women.
Zhou Ting seems, Kate Spade can be appropriately accelerate the expansion of the market. “If the product innovation and product quality can keep up, the brand is able to expand development. Increased marketing efforts can be effective in improving domestic consumer awareness of the brand.”