U.S.A

Coach, a listed handbag manufacturer in New York, said in its application to the Hongkong stock exchange that it plans to issue up to 293 million shares of depositary receipts on the stock exchange and start trading next Thursday.

The company will remain listed on the New York stock exchange.

Coach is the largest international brand listed on the Hongkong exchange, which aims to expand the mainland market, because the mainland is expected to overtake Japan in 3 to 5 years and become a leading market for luxury consumption.

Some luxury goods vendors have been listed in Hongkong, including French cosmetics retailer L//Occitane, Italy fashion company Prada and trunk manufacturer Samsonite.

"We believe that the trend of luxury brands going public in Asia will continue," told the Southern China Morning Post reporter of CLSA's Asian consumer and games research.

For many luxury companies, more than 50% of their income comes from Asian consumers.

[Asian listing] will help them enhance their brand awareness.

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Coach first became interested in listing in Hongkong in May.

Andre Cohen, President and chief executive officer of Coach Asia, said that the main purpose was not to raise funds, but to enhance brand awareness and strengthen communication with Asian investors.

At present, the Chinese market, which accounts for 3% of Coach's total sales, is the main driving force for profit growth.

Over the past two years, the turnover generated from the mainland has increased by more than 70%, rising from $50 million a year to 185 million US dollars.

The company expects that the mainland's turnover will reach US $500 million in 2 years, accounting for 10% of the total turnover.

Coach said that in the next few years, it will open about 30 new stores in mainland China each year, most of which will be concentrated in two or three line cities.

Next year, online shopping services will be launched for mainland consumers.

About 85% of Coach's products are made in mainland China.

Sitoy Group, the largest outsourcing manufacturer of Coach, plans to raise HK $986 million by way of initial public offerings in Hongkong next month.