Michael Kors, Kate Spade, Coach. The three US light luxury brands have experienced the 2012 – 2014 handbag war prosperity, but also in the 2015-2016 years into the brand too exposed, the image of aging, department store depression.
Now, their fate is moving in a very different direction: Coach succeeds in transition and begins to move closer to luxury; Kate Spade is acquired by Coach; and Michael Kors is still “trial and error”.
On Wednesday, Michael Kors announced that it was under pressure from discount sales that it would close 100 to 125 regular retail outlets in the next two years. By the end of 2016, the brand in the global direct selling point a total of 800, of which 614 for the price of the store. The spending required for the store is expected to be as high as $ 125 million.
In addition, Michael Kors in the next two years want to do things include: the introduction of new design, increase the replacement package and other custom elements; refurbished 100 stores; guest unit price by 10%; discount activity time by 40%.
“Our products and store experience did not fully appeal to consumers,” said John Idol, CEO of Michael Kors. At the investor conference next week, he also plans to announce a recovery plan called “Runway 2020”.