Tapestry deepens push into China, undeterred by luxury market slump - BusinessWorld Online

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Baoji, an industrial city in northwest China with a population of 3 million, doesn’t conform to most people’s idea of a luxury goods market. Sometime soon, however, it will be home to a store for American brand Coach. READ:

” at a time when many higher-end labels have gone further upBrands from Louis Vuitton to Gucci and Burberry have an established presence in’s biggest metropolises such as Beijing and Shanghai as well as second-tier cities like Wuhan and Xi’an.

In contrast, cities on the lower end of tier rankings – determined by metrics such as economic output, consumer behaviour and population size – have been shunned, seen by many brands as lacking theBut where a Louis Vuitton bag or a Gucci dress can sell for thousands of dollars,Tapestry’s second foray into a fourth-tier city after it opened a Coach store two years ago in Daqing, a city in the northeast known as the “oil capital ofalso plans to look at other tier-four cities as candidates for the...

“A lot of our existing customers are already from tier-three, tier-four cities, so we believe there is a cluster there that will get us scale. We never want to be exclusive or selective, we want to be close to where our customers are,” Bozec said.

 

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