COACH Inc will take back direct control of its retail business rights on the Chinese mainland, Hong Kong and Macau from its distributor ImagineX group.
The company didn't reveal financial details.
The leading US luxury handbags maker will acquire the assets, including fixtures and inventory, of its stores in the region in stages over the next year. Coach expects that this acquisition will be slightly dilutive to its consolidated financial results in the near term.
"Over the next five years, we expect to open over 50 new locations, aggressively growing our sales and market share in this rapidly expanding region," said Ian Bickley, president of international operations for Coach.
"Our goal is to be one of the top three imported handbag and accessory brands, with sales of over US$250 million and a market share of at least 10 percent by fiscal 2013, up from only about US$30 million and 3 percent today."
Thibault Villet, Coach's China president, will lead these businesses.
The company's market research indicates that by 2013, the premium handbag and accessories market in the region will likely exceed US$2.5 billion, more than doubling its present US$1.2 billion.
Coach is now poised to build the third leg of its business in China, following successes in North America and Japan, the company said in a statement.
"With the investments we will make in stores, marketing, organization and infrastructure, we're poised to replicate our success formula in Japan since taking control of the business there in 2001," Bickley said.
There are currently 24 Coach domestic retail outlets in these three regions, including its new Queen's Road Central flagship and seven other stores in Hong Kong, one in Macau and 15 on the mainland.
In addition, there are five travel retail locations in the region, which will continue to be managed by third-party operators and are not part of this agreement.
The company didn't reveal financial details.
The leading US luxury handbags maker will acquire the assets, including fixtures and inventory, of its stores in the region in stages over the next year. Coach expects that this acquisition will be slightly dilutive to its consolidated financial results in the near term.
"Over the next five years, we expect to open over 50 new locations, aggressively growing our sales and market share in this rapidly expanding region," said Ian Bickley, president of international operations for Coach.
"Our goal is to be one of the top three imported handbag and accessory brands, with sales of over US$250 million and a market share of at least 10 percent by fiscal 2013, up from only about US$30 million and 3 percent today."
Thibault Villet, Coach's China president, will lead these businesses.
The company's market research indicates that by 2013, the premium handbag and accessories market in the region will likely exceed US$2.5 billion, more than doubling its present US$1.2 billion.
Coach is now poised to build the third leg of its business in China, following successes in North America and Japan, the company said in a statement.
"With the investments we will make in stores, marketing, organization and infrastructure, we're poised to replicate our success formula in Japan since taking control of the business there in 2001," Bickley said.
There are currently 24 Coach domestic retail outlets in these three regions, including its new Queen's Road Central flagship and seven other stores in Hong Kong, one in Macau and 15 on the mainland.
In addition, there are five travel retail locations in the region, which will continue to be managed by third-party operators and are not part of this agreement.
