Kate Spade Slows Down Shop And Starts To Turn Into Profit.

U.S.A

Kate Spade rethinking

Strategy, slow down the shop pace and start to turn into profit.

Net profit in the first quarter reached 11 million 600 thousand US dollars (about 75 million 444 thousand yuan), up 7.5% over the same period last year.

Sales in North America also beat analysts' expectations, with a 17% increase in revenue.

As the birthplace of brand, North America contributed 80% of revenue to the company.

The rest of the world's revenue was 49 million yuan (about 318 million yuan), an increase of 3.2% over the same period last year.

This not only stems from

Strategic adjustment is also closely related to online layout.

In the first half of last year, Kate Spade shut down the medium and low price young Kate Spade Saturday, and the menswear line Jack Spade, concentrating its efforts on the main line Kate Spade New York operation.

While improving brand positioning, this lightweight luxury brand has entered the Lifestyle category of children's clothing, sportswear, bedspreads, kitchenware, bathroom and so on to expand the brand exposure rate.

Ralph Lauren, which is seen as a model by the chief executive of the brand, extends the product to every aspect of the consumer's daily life.

Moreover, Kate Spade has been focusing on the layout of online businesses since 2015.

Craig Leavitt, for example, will click online to analyze which products are most likely to catch users' attention and then place the corresponding products in the official website digital marketing channel.

Similarly, Kate Spade does not forget mobile terminals.

Craig Leavitt said that last year, the total flow of mobile terminals for Kate Spade has increased considerably, and the number of mobile phone orders has doubled over the same period last year.

Kate Spade 2016 Summer

Kate Spade 2016 Summer

Unlike the previous crazy shop opening rhythm, Kate Spade now has 169 stores in North America, including 64 discount stores.

Of its 91 stores worldwide, 14 are discount stores and 53 are franchised stores.

In addition, customers will see 121 joint ventures in overseas markets.

For example, the Kate Spade in China is the brand and Walton Brown established by the Hongkong high-end boutique chain group, Lane Crawford Joyce, which operates 50% joint ventures.

Craig Leavitt said in a notice last year: "Walton Brown's human relations and its professionalism in operation and marketing will help us create a unified store in a young and active ecosystem, and deepen our links with Asian consumers."

According to the long-term strategy of the joint venture, Kate Spade will open 100 stores in China.

While announces the first quarter earnings, Kate Spade reconfirmed its 2016 Revenue Forecast: $1 billion 390 million -14.1 billion (about 9 billion 40 million yuan -91.7 billion yuan).