Coach develops China tactic
29/05/2008
US luxury brand Coach has announced plans to make a bigger impression on the market in China.
The handbag and leather accessories brand has said it will buy out the businesses of its official distributor in China, Hong Kong and Macau, ImagineX, for undisclosed sum.
The company has also opened a new flagship store in Hong Kong, and has announced its intention to increase annual sales in China nearly tenfold by 2013 to over $250 million. It believes this would give it a market share of at least 10%, up from $30 million and 3% respectively now. It aims to become one of the top three overseas handbag and accessory brands in the Chinese market.
Coach expects the overall market to more than double in size over the same period to more than $2.5 billion in annual sales, up from of $1.2 billion now.
The company plans to open 50 retail outlets in China over the next five years, 24 of which will be sites it takes over from ImagineX.
ImagineX will continue to provide Coach with support services in distribution, logistics, human resources, accounting, payroll and information systems.
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