MK Suspected Price Tag Fraud Encounter Crisis Of Confidence Difficult To Break Through

Once a vicious circle becomes more intense, the Michael Kors brand will gradually become worthless. At present, North America accounts for the largest proportion of Michael Kors business. China is still the primary market of the brand, and the brand plans to set up a distribution center in Hongkong.

Michael Kors, a luxury luxury brand that lost its reputation for "the best single product" because of its rapid expansion, was cheated and compensated for $4 million 880 thousand in the United States.

It is understood that two. Consumer A court in New York sued Michael Kors for the use of the "manufacturer's suggested retail price" and "our price" in the price tag of the product, and caused the "cheap price" of our two atmosphere to entice consumers to buy. But in fact, the "manufacturer's suggested retail price" performance is exclusive. Outlet The use of products in stores, this suggestion. Price Never really sold products. Consumers think brands are fooling customers. A few days ago, the two sides reached a settlement. Michael Kors agreed to cancel the "manufacturer's proposed retail price" and replace it with "Value" and pay $4 million 880 thousand for this purpose.

This is another crisis of confidence after Michael Kors's lower than expected profit in the fiscal year. The former has caused the company's share price to dive 19%. In the North American market where the lawsuit took place, sales revenue in the fourth quarter of last fiscal year fell by 7% compared with the same period last year.

Michael Kors is caught up in a fraud case, behind which is unsustainable growth. Zhou Ting, the dean of the Institute of wealth and quality, once said that in the stage of customer consumption upgrading and personalized choice, the performance of the new luxury brand has surged. However, sales support from a large number of new stores is actually difficult to get long-term benefits, and eventually consumers will encounter a decline in enthusiasm and re examine the quality and value of the brand itself.

And Michael Kors appears on the price tag to play "tricky", which will further damage the reputation of consumers. At the same time, Michael Kors is also losing the premium of the brand in order to promote frequent online and offline discount sales. As a result, the gross profit of the brand dropped to 58.4% from 59.9% in the same period last year.