Coach Pformation May Change.

It may take a few years to restore Coach, which may become quite different in 2017.

According to the world clothing and shoe net, the company, holding $1 billion 800 million in cash, is constantly looking for bags to compete for.

Accessories, etc.

In the past few months, the brand "Buberry", "Kate" spade and "Jimmy Choo" that just came out last week have been distributed to the company.

Although these mergers and acquisitions are only market rumors at present, they are not groundless.

At the beginning of this year, Coach began to constantly adjust its leadership structure. It is easy to see that this company wants to pform itself into a multi brand group's ambition.

Reporters noted that Kevin G.Wills, the chief financial officer appointed by the company in January this year, was a senior executive at international business consulting company, responsible for capital restructuring and mergers and acquisitions. In February, it again announced that it would add the post of president of the global business development and strategic alliance.

Ian Bickley, President of brand international group, was appointed under the new appointment. Bickley was responsible for the strategic cooperation of cross brand. By April, the company announced that it would add its president and CEO to its Coach brand. The new appointee, Joshua Schulman, had done CEO for 5 years in Jimmy Choo.

Affected by these news, Coach's stock jumped 10.48% on Tuesday.

The company also released its results for the third quarter ended April 1, 2017.

Although sales revenue dropped slightly from 4% to 995 million US dollars, profits were higher than market expectations.

"Despite the continuing uncertainty in the retail market environment, our strategic vision for brands and companies remains clear."

Coach Group CEO Victor Luis concluded at the performance meeting. "With the implementation of the new leadership structure, Coach and Inc. are ready to continue to develop into a global multi Brand Company."

Yang Dayun, President of Cci Capital Ltd, believes that the merger and acquisition of the global fashion industry has always been the "main theme" in the whole industry development process. In the traditional fashion industry, a brand is recognized by the market as a long process, and in the fashion industry, it can really become the mainstream consumer brand.

This is a relatively easy entry field, but it is also an industry which is not easy to establish. The more mature the market is, the less brand the consumer needs to choose.

"Fashion comes and goes."

"In this industry, a diversified brand strategy means less volatility and more consistency," said Erwan Rambourg, a global luxury market analyst at HSBC.

This can evade your risk. "

Four years ago, the US company, founded in 1941, paid a price for the brand's rapid growth over the past decade, and its performance continued to decline.

In the year 2014, the stock price of the company had fallen by 40%.

People no longer wait for the next hot handbag to queue at the door of Coach shop, and the market share that the brand once owned is also eaten up by Michael Kors, Kate Spade and other rising stars.

After realizing the crisis, Victor Luis resorted to a big strategy and announced a package adjustment strategy at the June 2014 investor conference.

According to the plan, Coach will gradually close the factory shops that dilute brand value, reduce the discount of products, and increase the supply of new products with higher price, and update the concept of stores, and promote the new positioning of the market.

The company tries to reverse the sales decline by reshape the brand store image and win back the market share grabbed by competitors.

But the middle process is difficult and the effect is slow.

Fortunately, however, the decline of the company gradually improved in 2016, and the momentum of development also picked up.

The reform within the company is still continuing.

Reporters noted that in order to avoid dilution and dilution of their brands, the company constantly adjusted wholesale channels from more than 200 stores in North America.

The latest three quarterly report said that in the future, it will continue to reduce sales promotions and close about 25% of wholesale sales channels in North America.

This will undoubtedly affect the performance this year, and the company expects that sales revenue will increase this year.

However, there is also a market view that Coach has been trying to improve its brand premium and let shoppers pay higher prices.

At least in the US.

Erwan Rambour points out that the United States is a country with a high value for money and culture. It is a problem if people buy all kinds of goods in the excessive culture of discount culture.

Coach's exploration of M & A is believed to help further expand its sales scale and profitability, at least if multiple brands can drive growth.

Although Coach is a novice for the M & a industry, it is not inexperienced in this respect.

Stuart Weitzman, another shoe brand owned by the company, was acquired in 2015.

For this brand, Victor Luis said in an interview earlier that the acquisition of Stuart Weitzman is an exclusive opportunity to enter the footwear market, because the company sees shoes in the world with an opportunity of $27 billion.

Coach said that Stuart Weitzman is gradually attracting millennial consumers, and expects brand sales to grow in double-digit growth in the fourth quarter and the whole year.

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