AN EXPLORATORY STUDY ON THE INTERNET MARKETING STRATEGY OF COACH IN CHINA

Meng Cui

【Abstract】This thesis aims to study an American brand—Coachs online marketing strategy in China. It starts with a basic introduction to Coach Brand； and then the writer offers a SWOT analysis on Coachs Internet marketing strategies. The last chapter is dealing with the Internet marketing strategy adopted by Coach.

【Key words】COACH； fashion luxury market； Internet direct marketing； branding strategy

Introduction to COACH Brand

Coach was founded in 1941， in a loft on Manhattan's 34th Street， New York City as a partnership called the Gail Leather Products. Nowadays， Coach becomes one of the best recognized accessories brands in North America， its long-term strategic plan is to increase international distribution and target international consumers， with an emphasis on the Asian consumer.

SWOT Analysis of Coach Internet Marketing in China

Strengths

Coach has a strong image of “affordable luxury”. Coach offers a wide range of merchandise through its stores， which enables it to draw customer attention. Coach seeks to establish a premium brand that attracts affluent consumers and also provide lower-priced goods to appeal to the demand of middle-class customers.

Weaknesses

Coach sources on a global scale with its manufacturers located in Hong Kong， China， South Korea， India and Vietnam. As a result， the company does not have a direct control over the manufacturing process or the quality of the raw material being used.

Opportunities

Coach can expand its market size in China. The luxury goods markets in China is expected to grow in the future. There are less than 10% of Coachs sales in China， and its brand awareness is far less than in the US. So， there is scope for growth in China for the company.

Threats

The market for luxury goods is becoming more and more competitive in China. And the large number of discounted stores and counterfeit goods has damaged its reputation to some extent.

Suggestions and Implications to Coach

Increasing Consumers Experiences via Internet Consumption of Luxuries

When online， advantage of computers could be borrowed to enhance consumers experience in sound and image. Both exquisite pictures and music could also be placed on the web pages， providing consumers with video data. For internet， it could possibly offer a unique shopping experience. In another sense， web sites could prepare virtual dressing rooms. To take clothing luxuries for example， when consumers tell basis information of height and weight， etc. the site will soon make a virtual fitting model.

Strengthening Construction of Information Security

Luxury suppliers should put efforts in strengthening construction of their own information security with the following measures：

（1）To furnish consumers with safe technical support while they input personal information. For instance， when information is inputted， the web sites shall provide download of security control suite for data encryption to the pages being logged in.

（2）To enhance security protection in company network. The frequent work involves the installation of firewall and use of antivirus software， instead of pirated software. Besides， restriction on the use of software is needed and no installation of software is allowed without permission.

（3）To prevent loss of information from within. If necessary for employees to copy information into private PC due to work which may lead to disclosure， it is a must to standardize operation， setting relative permissions to access the company resource and reinforcing personnel management.

Innovating the Distribution and Delivery

Suppliers may request logistics companies for special service program of goods delivery. A typical example is that Shentong Express has opened up “Service Channel for Valuable Articles”， ensuring the delivery of precious goods. Incase that anything unexpected happens during delivery， the suppliers could raise claim from the logistics companies based on such a condition.

References：

[1]Liu Jia，（2008）.Luxury marketing-new Blue Ocean.China internet week，38.

[2]Michael J.Shaw，（2006）.E-commerce and the digital economy.NY： M E Sharpe，53-71.

[3]Xu Guolan，（2007）.Research on pattern of internet direct marketing.Journal of Zhejiang University，160.