Coach is a handbag and accessories luxury brand founded in 1941. The brand has a rich and authentic American heritage. Recently, this high-end brand based in New York has incorporated new footwear and ready-to-wear collections.
Due to its efficient marketing strategies, Coach has become one of the most successful high-end brands in China.
As opposed to in America, the fashion brand is rapidly growing in China. Over the last years, the brand sales in America have fallen. In 2013, the incomes fell 12 percent from the year before due to the strong market competitors such as Michael Kors, Tory Burch and Kate Spade
However, in China, the company sales have quickly increased, with a growth of 35 percent in the fourth quarter and 40 percent for the entire year. The brand has rapidly expanded its presence across China with stores in 47 cities and building 30 new shops in the last year. Nowadays, Coach has 126 stores in the Asian giant, 108 of which are situated on the mainland.
In China, Coach has rebuilt its brand image by moving from a youthful branding strategy to a new image-based in the “hot mom” category.
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What is its secret in China?
Coach is aware that Chinese consumers are very different from Western consumers and therefore it is necessary adapt the marketing strategy to this market and consumers. The brand’s goal is position itself as a modern fashion brand and with an aesthetic that is clearly younger compared to other countries.
The Coach’s strategy in China is adapt its branding messages specifically for the China market and focus its efforts on e-commerce and social media marketing strategies.
Coach was recognized as the fourth most digitally efficient brand in China. In November 2012, the luxury brand launched its e-commerce site and a new account on WeChat, one of the most popular social networks in China.
So far, the secret of Coach resides in completely understand Chinese consumers’ needs and concerns. By the creation of “10 reasons” to use the Coach’s e-commerce site, the American brand has demonstrated its awareness of worries among Chinese online shoppers such as cash-on-delivery payment, guaranteed authenticity and easy refunds.
Coach’s social media strategy
The American brand has a very actively presence on the Chinese social media platforms. Its social media strategy is focused in a youthful image and the brand transmits this concept through regular marketing campaigns on Weibo and Wechat.
For Mother’s Day, the brand launched a campaign on Weibo called “Hot Moms”. To participate, followers had to upload pictures of mothers with their babies with the hashtag #COACH尋找辣媽# and the tag @coach attached, with the aim to win a Coach bag.
Coach an innovate Brand
Coach is one of the most innovate brand on Wechat. The luxury brand offers free phone wallpaper designs and weekly giveaways in its “Try Your Luck” section via WeChat. The brand has launched numerous campaigns on WeChat such as the campaign called “What’s In Your Coach Bag?” where followers had to share pictures of the content of their purses.
Or a campaign on Weibo and WeChat where the members had to type “Modern New Yorker” (摩登纽约客) on Coach’s WeChat account in order to receive nine puzzle pieces of a picture of brand ambassador Leehom Wang. Then the participants were able to upload to Weibo the puzzle with the purpose to have the chance to win a Coach poster autographed by the superstar.
The brand has around 720,000 followers on Weibo which means a strong engagement between Coach and Chinese consumers.
The success of Coach in China resides on its knowledge about Chinese consumers’ needs and concerns and about the power of Chinese social media platforms. Keeping this mind, Coach has developed efficient digital marketing strategies by increasing its presence on social networks and developing its e-commerce site.
If you are interested to increase your presence in China and therefore increase your sales, don’t hesitate to contact us.