Coach is the 4th brand of handbags in China in terms of sales
Coach is an American brand of handbags. The brand has reached 4th place when it comes to handbag brands as reported by the latest report of the most dominant brands in China. The company which started in 1941 with only six artisans is now on the verge to become a leader in the luxury sector.
With over 100 shops in China, the brand has decided to start selling online to target more Chinese consumers.
In 1999, the brand had already implemented a website selling online primarily intended for U.S. consumers. When it comes to China e-commerce started this year.
A website devoted exclusively to Chinese consumers
- The website is entirely in Chinese characters (titles translated into English)
- The ability for users to create an account
- Presentation of Products, exclusivity
- Online Promotions
Once registered, the brand can target and customize its communication and build an intimate relationship with its consumers by sending e-mails to provide promotions in order to educate Chinese consumers and increase sales.
The coach also created this online platform in order to monitor its brand and distribution to local consumers. Indeed, after bad experiences regarding online counterfeiting, Coach decided to make a partnership with the company Tmall to prevent such practices.
Indeed there is nothing better than launching your own website to promote the quality of your products and fight that way against other websites offering junk copies at ridiculous prices.
Coach uses sponsorship as a communication tool in China
Sponsorship with the actor and singer Leehom Wang
To promote its new website Coach chose a sponsorship strategy.
The lucky consumer had the right to handbags signed by the actor and singer Leehom Wang. This latter is also used as a model to represent the range of handbags for men by Coach.
Coach is one of the first luxury brands to choose to implement a “Chinese” oriented communication strategy. American quality is there but the brand uses a Chinese model. Thus, Chinese consumers can identify with the brand while identifying with the star.
Sponsorship with the artist Zhang Lan
Zhang Lan is a Chinese artist who specialized in graffiti. Coach made a partnership with him to create a limited edition called “Dragon Collection” for the year of the dragon in China.
The brand also used digital communication with its Weibo page sending e-cards for the new Chinese year. This campaign has been relayed by followers of the brand.
Chinese buyers online benefit from some privileges
To attract Chinese consumers to its online platform, Coach decided to promote products only to be available online. This will give a kind of privilege to customers who have registered.
But the launch of the Coach will raise some difficult issues. Indeed Coach is an image of a semi-luxury brand. We will see if the online sales of counterfeit coach handbags will decrease or if this new distribution channel will allow the brand to generate more sales and continue to foster its growth in China. On the one hand, one should not forget that before buying. Chinese consumers like to have a product experience which means handling, touching and paying attention to every detail. On the other hand, by positioning itself as an “affordable luxury brand” Coach will target all premium classes but also the middle classes in China who can afford to buy the product. To be continued…