Coach

EXECUTIVE SUMMARY

Coach is a leading American designer and maker of luxury lifestyle handbags and accessories. Using a range of quality fabrics and materials, Coach's product offerings are unique and endurable. Coach is a New York brand. The culture of New York itself is very dynamic yet relaxed, fun-loving, highly confident and democratic. With the positioning of “affordable luxury brand”, Coach has made a big success in Japan. As China is becoming the largest luxury good market, Coach China begin to realigned its distribution channels to cater to customer needs more efficiently since 2009, so as to offer affordable luxury brand for Chinese consumers and replicate Japanese market success in China.

Currently, Coach China market share in China is around 3-4%, and its goal is for Coach to become one of China’s top three luxury handbag and accessory brands within the next three years. By 2013, Coach China expects its entire operations in China to do US$250 million in business.

Although being late in entering the China market, due to the competitiveness of the price and design, Coach has every opportunity to be successful. By building brand awareness and developing the right relationships, the company should aim to have a larger market share in the coming years.

We recommend that Coach focus on establishing brand awareness and build dedicated channel coverage. Furthermore it is important that add Chinese culture elements into design style innovation.

INTRODUCTION OF COACH CORPORATE

Coach was founded in 1941 as a family-run workshop. Coach is now a leading American marketer of luxury lifestyle handbags and other fashion accessories for both men and women. It is one of the well-known handbags and accessories brands in the US with presence in select international markets, and is widely perceived as an affordable luxury brand.

In fiscal 2009, the Company acquired the Coach domestic retail businesses in Hong Kong, Macau and mainland China ("Coach China") from...