Coach has been a rising star in the Chinese market. For the first half of this year, the affordable luxury brand has become the third best-selling brand with reported annual growth of 60%.
Now the company is ready to commit to China’s explosive e-commerce market. After a brief stint selling through Alibaba’s Tmall.com last year, Coach has launched an online store on its Chinese website.
“The launch of our official online store is a major milestone in Coach’s history, underlining our confidence and unswerving commitment to this growing market,” said Jonathan Seliger, president and chief executive officer of Coach China. He expects the venture will help Coach engage with the local customers more and better control its brand image and messaging.
To kick off the e-commerce launch, Coach is offering bags signed by singer and actor Leehom Wang, who is the new face of the brand’s men’s accessories, reports WWD.
To attract Chinese consumers to its online store, Coach will feature exclusive products that are only available online. Coach will self-manage the e-commerce site, but will outsource order fulfillment.
Coach continues to invest heavily in China with plans to open another 30 location by year-end, bringing its total stores in China to 130.
We indicated in a recent post that as China’s middle class expands, so does the market opportunity for affordable luxury or “accessible” luxury. The upside potential for Coach is huge given the right execution since the company only has about a 16% visibility in China compare to 80% visibility in the U.S.
photo credit: coach