Coach Inc., a New York-based designer and marketer of luxury accessories, is planning major forays into China. The company's aim is to make the country its biggest market by 2014.
The American outfit has set sales targets of $500 million for the next three years; this figure is an increase over the expected $300 million in the current year.
According to Victor Luis, president of the Coach retail international business unit, the company also is looking to establish a greater number of stores in China.
Initial plans indicate Coach wants 30 new stores, particularly in second- and third-tier cities like Nanning and Urumqi. In addition, the company wants to establish stores in growing urban areas outside central cities such as Beijing and Shanghai.
The Wall Street Journal reported that the handbag, accessories and leather goods manufacturer is pressing forward despite signs of slowing gross domestic product (GDP) growth amid weakened demand for China's exports. The belief among Coach's senior executives must be that the Chinese economy will continue to grow at a steady pace, despite Beijing's effects to tame inflation and the continued unease abroad.
Meanwhile, it has been reported that the company is working on large regional showroom projects for a greater variety of noncore products, such as coats and perfumes. Apart from this, the company is also setting up kiosks in front of department stores to draw the attention of luxury buyers. Moreover, the company is also planning to set up an online commerce platform for China by the end of the next year.