Why Is China Important For Coach's Long Term Growth?
Quick Take - Facing slower sales growth in North America, Coach is focusing on China to drive its future growth China currently represents less than 7% of Coach’s sales, however, we expect this share to grow rapidly in the future on account of strong demand in the Chinese luxury market and Coach’s aggressive expansion plans in the region The Chinese luxury market is estimated to account for one-third of the global luxury market by 2015 Government measures to check corruption and change in Chinese culture are certain factors that present roadblocks to growth Coach aims to aggressively expand its operations in China to grow its 6% market share in the region. Coach Inc. is a leading American marketer of luxury handbags and other fashion accessories. With slower sales growth in the North American region, it is focusing on China to drive its business. Coach registered 40% growth in annual sales in China in its most recent quarter as compared to a mere 1% annual growth in the North American market.