Kate Spade Closing The Sub Line And Men'S Wear Line.

Recently, the US luxury light company Kate Spade&Co. announced that in the first half of this year, the 12 shops of Kate Spade Saturday, 19 stores and men's wear lines Jack Spade will be closed down in the first half of this year and focus on developing the Chinese market.

Closing the secondary line and the men's wear line, the cost of Kate Spade is $30 million in cash and 9 million in cash.

People are puzzled about this big move, because in February last year, Kate Spade also vigorously promoted the second brand Kate Spade Saturday to win more young users. Its price is half of the core brand Kate Spade New York.

But in recent quarters, the company has noticed that the sales of Kate Spade Saturday are weak, and the discount rate is too large, which has already endangered the gross margin and share price of the company.

"Along with this strategic alignment, the company will focus on the long-term development of the core brand Kate Spade New York," chief executive Craig Leavitt said in a statement.

To this end, Kate Spade Saturday, which has just been released for two years, will end its independent operation mode, retain trademarks and products, and sell it in Kate Spade New York.

Jack Spade will try new business models and expand e-commerce platform.

Craig Leavitt said it will extend the brand tentacles to fragrances, jewelry, watches and sunglasses based on Ralph Lauren, extending the product to every aspect of the consumer's daily life.

He also set a sales forecast of 4 times - $4 billion.

According to the preliminary income statement released yesterday, Kate Spade still has a certain distance from this target: last year's sales volume was initially estimated at about 1 billion 130 million -11.4 billion dollars.

This has broken the analysts' expectations.

In addition to the derivative line, another growth point that the company will continue to focus on is the geographical layout.

Kate Spade announced in its announcement yesterday that it has set up 50% joint ventures with Walton Brown of Hongkong's high-end boutique chain group (Lane Crawford Joyce) to speed up the growth of the brand in China.

In fact,

As early as 2011, it formed a joint venture with E-land, Kate Spade China, which was responsible for the operation of the mainland market. The joint venture period was ten years.

Now, the light luxury brand, based in New York, will pay $36 million to the clothing and love group in order to recover all 60% of its partners' hands. Walton Brown will contribute 21 million yuan, and Kate Spade will also pay for the restructuring fee of 5 million dollars.

Kate Spade, famous for its bold and concise form, has only been established for 21 years.

In the US market, it is popular with Asian brands, such as Coach, Michael Kors and Tory Burch, which are also positioned in light luxury. However, the development efforts have been limited.

According to official website data, there are 33 Kate Spade stores in China.

In May last year, Coach opened 152nd stores in China in Shaoxing, Zhejiang.

Referring to the change of partners in the Greater China region, Craig Leavitt said in its announcement: "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.

before

The group's business is mostly concentrated in high-end luxury retail and distribution, and Walton Brown is responsible for the group's import and export business.

At present, China's light luxury market is booming, and they plan to enter the huge emerging middle class market in China with the platform of Walton Brwon.

In December 4th last year, lac group announced that Walton Brown would pform its functions to provide brand building for international large and medium end luxury brands and cover multi-channel sales from retail and wholesale to e-commerce, tourism retail and discount stores.

"In view of the Greater China region

As we mature, the fast-growing middle class has brought us new business opportunities outside our existing business scope.

"We have accumulated rich experience in the market, and we will be fully able to grasp this new opportunity," said Jennifer Woo Chun-en, chairman and chief executive officer of LCF group.

The announcement of Kate Spade also announced the next step of the brand - the introduction of children's wear series.

CEOCraig Leavitt explained in a telephone conference yesterday's performance report: "we have seen the prospect of children's wear series well before, including our children's wear series launched by Gap, so Kate Spade's own children's wear series will come out in a few weeks, which makes us very excited."