Hong Kong Foreign Direct Investment Issue 1 ... - Invest Hong Kong

Hong Kong has offered fertile ground for the
growth of Coach’s Asian business over the past
decade. Starting with a sourcing office in early
2000, Coach later developed its retail business
via a local distributor. In 2008-2009, however,
the company decided to make a larger commitment to
Asia and began to take back its retail operations under the
management of its Hong Kong regional office.
Perfect Showcase for International Brands
Andre Cohen, President and Chief Executive Officer-Coach
Asia, Coach Hong Kong Ltd, sees Hong Kong as a strategic
location for its retail brand in Asia. “It’s a vibrant city with
a well-informed, demanding and sophisticated consumer,
who influences fashion trends across the rest of Asia. So,
being successful in Hong Kong has really helped us to build
awareness and credibility in the rest of Asia,” he said.
With more than 28 million visitors from Mainland China
last year, the company is well aware of the impact of its
flagship store in the prime Central shopping district. “It’s an
excellent place for Coach to showcase our brand to Mainland
Chinese consumers,” Cohen added.
Efficient Sourcing Underpins Retail Success
Behind its retail outlets sit a sophisticated sourcing operation
which Coach recently expanded to accommodate its growing
Asia business. “When we decided to set up our direct retail
operation in Hong Kong, we relied strongly on our sourcing
office’s infrastructure – ideas, people and systems – to get
everything set up in a quick and cost-effective way,” Cohen
said.
Despite fierce competition in Hong Kong’s retail market,
Coach has already opened and operates 14 retail stores with
200 employees in Hong Kong and Macau. The latest addition
was its third flagship store in Hong Kong on Nathan Road at
the Mira Hotel, which was opened in December 2011.
Regional Functions Based in Hong Kong
Operated as a regional headquarters, Coach Hong Kong’s
office manages all its retail activities in Asia, except those in
Mainland China and Japan. A rolling programme of buying
back its operations in Singapore, Taiwan and Malaysia will
bring these markets under the regional office over the next
two years.
The decision to locate the regional office in Hong
Kong was largely based on the city’s business ease and
versatility. “Hong Kong is a great place to do business, with
a very talented workforce and business-friendly legislative
environment,” he said.
10
Coach Opens Regional HQ in Hong Kong
After major buybacks of its retail operations in Asia, the upscale US handbag maker
successfully listed on the Hong Kong Stock Exchange in December 2011 and is aiming
at aggressive expansion in its fastest growing market – Mainland China
Being successful in Hong Kong has
really helped us to build awareness and
credibility in the rest of Asia
Coach
Andre Cohen
President and Chief Executive Offi cer – Coach Asia
Coach Hong Kong Ltd
While its retail operations in Mainland China sit under
another subsidiary, Coach’s experience in Hong Kong has
helped ease its way into the world’s largest market. Building
on its presence in cities such as Beijing, Shanghai and
Shenzhen, it is now expanding into a next phase of cities.
“We’re using our experience of men’s business in Hong Kong,
which has been a very fast-growing sector, to help develop
this business across the rest of Asia. Hong Kong provides this
kind of invaluable market research,” Cohen concluded.
www.coach.com
� A maker and marketer of fi ne accessories, leather goods and
gifts for women and men
� Established in New York City in 1941
� Listed on the New York Stock Exchange and Hong Kong
Stock Exchange
� The Hong Kong offi ce manages retail operations in Asia,
except Mainland China and Japan