Coach Inc, which owns over 660 stores worldwide, has announced their plans to open 25 stores in China by the end of June 2011. The chairman of the company states that the market in China is developing rapidly and that China is a great opportunity for the company. Coach has a headquarters based in New York and is primarily a hand bag and accessories retailer. Coach is a luxury brand, however, they sell their products at a much lower price than many other luxury brands, such as Gucci, Prada, and Louis Vuitton. While Coach has been approaching the Chinese market they are also looking at various areas of Europe as well, such as Paris, France. According to reports, Coach has plans to open up to 15 outlet stores in the United Kingdom over the coming three years.
Coach announced their strategy for international growth is going to be focused on Asian markets. This will include the establishment of a new international retail organization which will encompass the Chinese and Japanese markets. According to reports, China comprises about 10 percent of the global luxury market for hand bags and accessories, of which the total worldwide comes in at around 24 billion dollars. Results were released from a recent survey that shows China remaining the fastest growing market for luxury goods. That same survey, done by the US consultancy Bain & Co, also stated that sales in China are expected to rise 30 percent this year and global sales are expected to go up 10 percent. Coach intends to make that rise benefit them as they expand into China.
