New York-based luxury handbag maker Coach will open 30 new stores in China by the end of June 2014, reports Inside Retail Asia. The new stores will add to the brand’s existing 147 stores in mainland China, Hong Kong, and Macau.
While third quarter sales fell by 7 percent to $1.1 billion, Coach saw its China sales jump by 25 percent. Disappointing sales at the brand’s North American stores contributed to the sales decline. According to Reuters, sales dropped 21 percent for the quarter ending March 29 at North American stores open at least one year, from which Coach derives 70 percent of its revenue.
With recent management changes that included the hiring of a new CEO, Victor Luis, and a new creative director, Stuart Vevers, Coach continues to remake itself as a lifestyle brand and expand its offerings to include shoes and clothing.
The new offerings could prove to be a shrewd move in China. According to Bain & Company, despite an overall cool down in the Chinese luxury market, luxury goods in women’s categories such as shoes and clothing had growth rates in 2013 ranging from 8 to 10 percent.
image source: coach