Coach sales up on gains in China
Updated: 2012-10-24 16:42
By Wang Chao (China Daily)
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American handbag and accessories designer Coach Inc announced on Tuesday that its fiscal first-quarter international sales revenue up dramatically, driven mainly by gains in the Chinese market.
The fashion house's sales revenue in the quarter ended Sept 29 rose by 11 percent to $1.16 billion from $1.05 billion a year earlier, according to its fiscal report.
International sales (outside of North America) increased by 15 percent to $362 million from $314 million last year.
The Chinese market remained strong, with its total sales up by nearly 40 percent.
Eight new stores opened in China during the first fiscal-quarter of FY 2013, bringing the total store number to 104.
Lew Frankfort, chairman and chief executive officer of Coach Inc, said he is pleased with the results, which is "highlighted by double-digit top line growth, with strong comparable stores sales – most notably in North America and China."
Coach completed the acquisition of domestic distributors in South Korea and Malaysia during this quarter.
Frankfort added that the launch of the new Legacy collection during the quarter contributed to the success.
"Inspired by our archives, this modern, leather-based collection reinforces our distinctiveness in the marketplace," he said.
According to Jonathan Seliger, President and CEO of Coach China, Chinese customers are relatively more discerning.
"They want a bag that meets their emotional need and functional need. At the same time, they are willing to try new products, bolder colors and new design. They are also more confident to show their style and taste."
Coach thus customizes products for Chinese customers.
For instance, it produces large size zipped-around wallets for Chinese customers to hold cash notes, whereas in North America, men prefer smaller and thinner wallets to fit in their suit pocket or pants' pocket.
Market research from the company also reveals that many female consumers in China prefer shoulder bag silhouette to hold A4 files for work. Such bags are their popular choice for after work events too.
Men in China normally prefer crossbody bags as most of them have to commute to work places using public transport, Seliger said.
wangchao@chinadaily.com.cn
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