"Nagoya is expected to be one of the highest-volume Coachlocations in Japan, and will represent our fourth flagship locationoutside of the Tokyo area, following locations we will have openedin Sapporo, Osaka and Sendai during the last six months," says IanBickley, president and CEO of Coach Japan Inc. "Our sales andmarket share gains in Japan have been dramatic, as our business hasgrown rapidly during the last few years."

Though generally regarded as difficult to crack, especially inlight of the decade-long sluggishness in the economy that's onlynow abating, Japan is nevertheless a highly coveted market forluxury goods, since brand loyalty is often fierce among theJapanese. Until recently, most of Coach's business in Japan hasbeen at boutique locations within established departmentstores.

"Accelerating our flagship openings—notably outside the Tokyoarea—is a key part of our strategy to grow our market share inJapan, along with expanding highly productive shop-in-shops," saysLew Frankfort, chairman and CEO of Coach Inc. "Nagoya in particularis a market where the Coach brand is underdeveloped and thereforerepresents significant potential."