Coach Fashion House Opens Global Flagship Store
New York-listed fashion accessories brand Coach International is opening a global flagship store in Hong Kong. The company expects the store to be one of the highest volume Coach stores in the world.
Coach has secured a prime position in prestigious shopping district Central for its flagship, due to open later this year. The corner location at the intersection of Queen's Road and D'Aguilar Street will "significantly enhance the Coach brand," said Ian Bickley, President of Coach International. "It is consistent with our strategy of raising awareness and aggressively growing market share with the Chinese luxury consumer."
Mr. Bickley says Greater China has the potential to quickly become the third major market for Coach, following North America and Japan.
By 2009, emerging markets are expected to account for around 25 percent of the global luxury handbag and accessories market. Mr. Bickey said Greater China represent the biggest market potential with an expected 10 percent global share.
"Hong Kong, with its strategic location, gateway status and number of local sophisticated luxury consumers, will play an important role in gaining such market share," he said.
Turning point
Coach already has 15 stores in the Mainland of China, 14 in Hong Kong and Macau and 20 in Taiwan, but Mr. Bickely said the new Hong Kong global flagship will be "a beacon for the Coach brand throughout Asia."
In addition to providing the Coach brand with a strong local consumer base, the flagship store will be a gateway to the tens of millions of Mainland Chinese tourists who visit the city each year.
"Our goal is to be the leading accessible luxury brand in Greater China, and Hong Kong is an important venue for us to build this foundation."
Coach manufacturers in 50 factories across 12 countries, including China, which keeps its products at an accessible price point.
"This global sourcing base allows us to pass considerable savings on to the consumer while at the same time providing them with product that is made from the same excellent materials."
Local partner adds value
Coach enlisted local distribution partner, Imaginex, to help it enter the Hong Kong and Mainland of China market.
Mr. Bickley said the partnership brings the brand knowledge of local real estate markets, regulatory issues and consumer preferences. "This mitigates our risk and allows us to rapidly expand in the region, increasing our number of store locations and building brand awareness."
Coach expects to expand its Greater China presence to about 80 stores in the next few years.
Coach: http://www.coach.com/default.aspx
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