Coach CEO: The Company Sees Chinese Consumers Globally

Coach CEO Victor Luis this week told CNBC that the company is pleased to see the Chinese consumers globally.

Coach sees Chinese consumers globally.

Coach sees Chinese consumers globally.

According to Luis, the company has seen the Chinese demand pick up in Europe and Japan, where the flows of Chinese tourists have increased, although the company has recently experienced the decrease in sales in Hong Kong and Macau as most of its counterparts, due to the decrease in Chinese tourist flows.

“We’ve been on a journey to transform the brand and we’re very pleased — obviously with the results that we’ve been showing — since that transformation began about two years ago,” Luis told CNBC.

Coach this week reported its first sales increase in more than two years. However, the company’s overall sales are down $200 million over the past two years, mainly due to its loss of market share in the handbag category.

Victoria’s Secret To Focus On Beauty Products In China

A model walked in the Victoria's Secret Fashion Show 2014 in London.

A model walked in the Victoria’s Secret Fashion Show 2014 in London.

This week, Victoria’s Secret, the US company known for its lingerie, officially entered the Chinese market. Instead of its famous lingerie, the company will focus on selling beauty products in China.

According to China Daily, the first official Victoria’s Secret Beauty and Accessories stores opened Monday in Shanghai’s Raffles City, Shenzhen’s Yitian Holiday Plaza and Guangzhou’s Taikoo Hui. The company will open five additional stores in Chongqing, Guangzhou and Chengdu later this month.

Chinese model Liu Wen walked in the Victoria's Secret Fashion Show in 2010.

Chinese model Liu Wen walked in the Victoria’s Secret Fashion Show in 2010.

As the company said, “We look forward to entering this important global market to enable consumers to buy and experience our products and services through authorized channels.”

Unlike the focus of lingerie in the US, the newly opened stores in China will focus on an iconic, fashion-forward range of beauty products and accessories designed for modern jet-setter, including fragrances like the FiFi Award-winning Victoria’s Secret Bombshell and VS Angel, and perennial favorites like the most-loved VS Fantasies, said in a statement issued by L Brands, parent company of Victoria’s Secret.

According to saleswomen at the Victoria’s Secret stores in China, the stores currently sell panties but not bras, possibly due to the training issue. However, some industrial expert considered it as an issue of “trade policies” as the Chinese government restricts the importation of apparel that is not produced in China.