Global flagship a beacon in Asia (hktdc.com)


	Coach President Ian Bickley says the Hong Kong flagship will be a beacon for the brand in Asia

	Coach believes its chic flagship store in Central will resonate with the fashion-forward Hong Kong consumer

New York-listed fashion accessories brand Coach International is opening a global flagship in Hong Kong, expecting it 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 Rd and D'Aguilar St, marking the start of Lan Kwai Fong, will "significantly enhance the Coach brand", says 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 per cent of the global luxury handbag and accessories market. Mr Bickey says Greater China – including Hong Kong, Taiwan and the mainland – represent the biggest market potential with an expected 10 per cent 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 Chinese mainland, 14 in Hong Kong/Macau and 20 in Taiwan, but Mr Bickely says the new Hong Kong global flagship will be "a beacon for the Coach brand throughout Asia". "It marks a turning point in the ascendance of our brand into a leadership position in Greater China."

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 a local distribution partner, Imaginex, to help it enter the Hong Kong and Chinese mainland market. Mr Bickley says this 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."

From 50 locations today, Coach expects to expand its Greater China presence to about 80 stores in the next few years.