Coach buys up retail business from ImagineX.
On the day of the new Coach flagship store opening in Hong Kong, news has come in that Coach is buying out the retail business from current Hong Kong licensee/distributor ImagineX for Hong Kong, Macau and China.
“Over the next 5 years, we expect to open over 50 new locations, aggressively growing our sales and market share in this rapidly expanding region. Our market research indicates that by 2013 the China, Hong Kong and Macau premium handbag and accessories market will likely exceed $2.5 billion, more than double its current size of $1.2 billion. Our goal is to be one of the top three imported handbag and accessory brands, with sales of over $250 million and a market share of at least 10% by fiscal 2013, up from only about $30 million and 3% today.
This acquisition is in line with the company’s objective to take control of brand building and distribution at this critical juncture and will lay the foundation for a substantial contribution of these businesses in the future.
There are currently 24 Coach domestic retail locations in these three geographies, including our new Queen’s Road Central flagship and seven other stores in Hong Kong, one in Macau and 15 in mainland China. In addition, there are five travel retail locations in the region, which will continue to be managed by third-party operators and are not part of this agreement.
Read the rest of the details here. ImagineX also manages retail outlets for BCBG, Hugo Boss, Dolce & Gabbana, Diesel, DKNY, Marc Jacobs, Tumi, Ferragamo.