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TOKYO — Walking down a street in Tokyo, it doesn't take long to see women clutching Coach bags.
The New York-based maker of fine leather goods is succeeding where other U.S. companies have struggled, winning over finicky Japanese customers who have long preferred European and homegrown brands.

With more than 100 retail outlets in Japan, Coach's sales tripled in the past three years to about $270 million.

Business in Japan now makes up more than a fifth of the company's global sales.

Japanese buyers are passionate about the leather and fabric bags and totes.

"I've always wanted a Coach bag," said Akiko Yamaguchi, a university student visiting a Coach store with her mother, who bought two bags for her daughter's 20th birthday. "I'd like to buy lots more if I can."

Coach is so popular that when it recently opened a store in the northern city of Sapporo, dozens of women lined up to be among the first to set foot in the shop.


KOJI SASAHARA / AP
Coach Chief Executive Lew Frankfort, center, with Coach Japan President Ian Bickely, speaks about the company's fall collection during a visit this month to Tokyo.


Known for its craftsmanship, Coach is the No. 2 imported bag and accessory brand in Japan in sales, trailing France's Louis Vuitton, a favorite for decades. Coach sells in department stores and has four flagship boutiques devoted to its products, with two more opening this year.

"We have a unique brand proposition. We are an accessible luxury accessories brand in which we offer extremely well-made products that are relevant to Japanese consumers' lifestyles at very attractive prices," Coach Chief Executive Lew Frankfort said during a recent visit to Tokyo. "We think the opportunities are abundant."

Coach keeps prices down — as much as a half or a third of European rivals — by maintaining low-cost suppliers and producing the bags in Chinese plants where workers are trained and supervised by Coach to maintain quality.

Still, the bags are not cheap, giving them the luxury-goods aura Japanese shoppers demand.

A Coach tote costs about $700, but smaller bags cost about $400.

It has also helped that the Japanese culture is brand-conscious. Even in the samurai era, people kept abreast of fashions, coveting brands in noodles, kimonos and bonsai plants.

Being out of touch with what's hip is potentially embarrassing in Japan and even costly for your career.

The brand loyalty often backfired on many U.S. companies trying to break into the Japanese market, although the Gap, Coca-Cola and Disneyland have been huge hits. Ford, Burger King, Gateway and Dunkin' Donuts haven't found Japanese buyers as welcoming.

"Coach is a case study in cracking the Japan luxury market," said Naomi Moriyama, president of New York-based The Moriyama Group, marketing consultants.

"Coach is winning in Japan because of intensive consumer research, superb product quality and customer service, stunning new stores and a constant flow of new products."

Japanese are snatching up Coach bags not only in Japan but also abroad as tourists. The same handbags are cheaper overseas because of Japanese taxes on imports and the costs of shipping and store space in Japan.

Some Japanese women say their loyalty to the Coach brand developed during shopping trips abroad.

Moriyama said Japan is filled with serious "power-shoppers," who see collecting brands as critical for status and self-expression, accounting for 40 percent of the world's luxury sales.

Many are single women who live with their parents, but a growing group of brand-conscious "power seniors" and women executives is likely to keep Japan an important luxury market for years, Moriyama said.

Stuck in small, cramped homes, Japanese tend to splurge on things like bags rather than larger goods like fancy furniture.

A Japanese woman spends four times her U.S. or European counterpart on accessories, according to Coach.

To keep its image fresh, Coach changes its offerings every month. Eye-catching bags, like this fall's collection that has a metallic sheen, are prominently displayed on counters.

Coach stores have huge glass walls to send that "accessible luxury" message. And the doors are open, unlike some of the European brands that exude exclusivity with doormen guarding the entrance.

But it's not just the cachet that has won over Japanese shoppers. The same qualities that have appealed to Americans are luring Japan's consumers.

"The leather on Coach bags is so soft, and the designs aren't as cluttered as other brands," said Shizuyo Sakabe, 47, a housewife who owns a Coach bag and wallet.

She summed up the feelings of many others: "I love Coach."

What started with a simple, glove-tanned leather bag — inspired by a worn baseball glove — has ballooned into a $2 billion enterprise for Coach. That's a lot of hobos and totes.

And while style-conscious fashionistas splurge on high-end designer handbags, à la Carrie Bradshaw on "Sex and the City," the 64-year-old accessories company has quietly generated a sense of brand loyalty based on a whole new handbag category: affordable luxury.

For longtime fan Kitsy Rose of KC Public Relations, the appeal dates to the late '70s, when she played dress up with her mother's black leather Coach tote. Today, Rose has seven Coach bags, including one in pink suede and one in denim, which she calls "guilt-free, affordable pleasures."

She also cites the "durable styles, which are now in bright colors and fabrics."

Alisa Henderson, Star 94's "Super Shopper," is another devotee who uses a Coach bag to carry her bills, daytime planner and phone.

"I bought my first black Coach bag at a garage sale," said Henderson. She also has several other "sturdy and classic" Coach bags, including a suede wristlet for evening.

And while few designer labels strive for durability in their luxury handbags, it's always been a selling point for the leather goods firm. Initially, Coach was known as a classic Manhattan leather house that manufactured small goods — mainly wallets — and crafted its first leather bag 21 years later. While the bags were known for quality, they were conservative; some might even say boring.

But in recent years, Reed Krakoff, Coach's president and executive creative director, has shaped the company's identity as a consumer-friendly option in the handbag market.

A graduate of the Parsons School of Design in New York, Krakoff worked at Tommy Hilfiger and Polo/Ralph Lauren — companies known for their ability to connect with U.S. shoppers — before joining Coach in 1996.

Krakoff's fall designs, which hit stores recently, include trendy mink-trimmed tweed hobos, backpacks in the signature Coach print and leather satchels accented with studs — styles that mirror trends found in Prada, Dior and Fendi this season.

Along with classic favorites, new fall styles retail from about $138 to $800; most Coach bags range from $138 to $398. The line's signature print demi pouch costs $158, compared with Louis Vuitton's $550 signature print pochette.

"The big success of Coach is predicated on the epidemic lust for luxury accessories that swept America the past few years," said New York trend tracker David Wolfe. "What originally began as an in-crowd rage for that black nylon Prada bag became a tidal wave for other designer bags including Fendi baguettes, Chanel chain handles and Christian Dior initials. Of course, the really hot bags were European labels and astronomically priced."

Wolfe added that Coach entered at just the right moment. "The brand redesigned, reinvented and repositioned itself to appeal to a younger, more fashion-aware — though far from cutting-edge — customer," he said.

For Krakoff, there's no concrete method to his design strategy, except to stick to his instinct. "It starts with an idea and quick sketch and develops from there into various categories," Krakoff said via e-mail. "I am constantly sketching and involved in the process [of making a bag] from beginning to end."

He describes his customers as "fun, independent, creative and sophisticated." Those style-conscious women have led to Coach bags and accessories appearing in department stores, online and in more than 375 Coach-operated stores worldwide.

The company has four free-standing stores in the metro area, including a shoe boutique in Phipps Plaza.

Department stores, including Macy's and Parisian, also have Coach departments.

"I think a customer is willing to take a 'risk' on a fashion bag that may be a little different than she is used to," said Macy's handbag buyer Laura Cooper. "But Coach is risk-free. It's high-quality fashion that the customer trusts."

Cooper also points out that Coach has changed the handbag market. At Macy's, which has carried the label for a number of years, Coach is the top seller in the better handbag area, with an average selling price of $230. "Many more moderate vendors copy Coach looks for the following season," she said.

"Coach is an excellent example of being consumer-friendly," said Michelle Bogan, retail strategist with Kurt Salmon Associates. "They tap into the consumer through interviews and surveys. For example, several years ago, women were asking for a weekend bag that was more casual. The result? The Hampton collection now includes a casual weekend bag."

However, older styles, including a 1973 duffel sac, are still an inspiration for Krakoff. Updated versions have become mainstays — in new colors and fabrications — along with the classic leathers.

"Coach is in a unique position," Bogan said. "It's high-profile, and consumers recognize the name. Reed brought in a fresh design perspective and listens to what the customer wants. Coach has evolved as their customers have evolved.

"Their momentum will continue for fall and beyond. They show no signs of stopping."

Coach Inc. is an American leather goods company.

Coach began as a family-owned business in a loft in Manhattan. It is famous for ladies' handbags, as well as items for both men and women, such as luggage, briefcases, and wallets and other accessories (belts, shoes, etc.).

Coach leather products tend to be somewhat expensive, but very well-made, using a thick, supple, high-quality leather that obtains a patina with age, and sturdy metal rivets and hardware (often solid brass). The company also provides leather care products for their items. Coach leather goods often last 15 years or more with proper care, and indeed, some of the original Coach bags from the 1940's are known to be intact and in regular use. One of the hallmarks of the Coach company is their policy that any Coach product may be repaired for the life of the product by simply shipping it back to the home office, for a nominal fee, with a note or letter stating the problem.

A curious characteristic of the company is its very high profit margins, which are several times higher than its competitors. Presumably, this is due to the fact that among high-end leather goods, Coach is somewhat of an oddity with its long production runs (the number of items of each design that are produced). With longer production runs, Coach is able to take better advantage of economies of scale than its higher priced and less profitable counterparts. Business analysts also attribute the continuing success of Coach to the fact that it has found a place in the niche market known as 'affordable luxury', wherein a brand is recognizable as a luxury product but is priced such that it is accessible to the budget conscious.

Overseas sales for the American leather company have also remained strong, especially in the Japanese market. Its main competition in the Asian country is Louis Vuitton, the top seller of women's luxury handbags.

It was William Shakespeare who said it best, "What is in a name? That which we call a rose by any other name would smell as sweet." In our materialistic society, names matter. They define who we are, our status and our mentality. Designers help us with this way of thinking by making their items the "must haves" of the season. To own something, especially handbags, with the moniker of Versace, Coach, Louis Vuitton or Burberry, shows the public that you are trendy and care about what is "in" and what is not.

It seems that everyday, more and more people walking down College Avenue have fashionable new handbags. At the same time, the handbag phenomenon leaves us to wonder: why do so many people have designer handbags that cost well above what the typical college student can afford? After all, the average sized Coach purse cost about $158. The answer is simple: designer knock-off handbags, of course.

The explosion of the handbag industry gives many knock-off companies the freedom to make replica designer purses at a much lower price. With our materialistic society rapidly growing, people are buying in to the industry and instead of paying $158 for the newest Coach purse, people are paying street vendors on Canal Street in New York City $30 for bags that looks somewhat identical to an authentic Coach bag, or paying $50 for a Nine West handbag that assimilates a Coach purse. People even throw "Fake Purse Parties" in their homes where their friends can look and buy the newest fashions in knock-off purses.

Professor Vasilios Christofilakos, Professor of Accessories Design at the Fashion Institute of Technology, believes that the sale of knock-off handbags is both positive and negative to society. Christofilakos warns all handbag fans not to mistake knock-off handbags for those of the black market. Knock-off handbags are better defined as the imitation purses that are sold in retail stores such as Macy's or Walmart, while black market bags are those sold illegally (namely by street vendors) that are copies of originals by such fashion houses as Louis Vuitton and Gucci.

Coach Purses & Handbags
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Coach Purses & Handbags are among the most sought after brands in fashion handbags, and for good reason: Coach is one of the few brands that stand up to all the hype. When you hold a Coach Purse, you can see and feel the quality. If it weren't for the fact that fashions change so often, Coach purses and handbags could be used for a lifetime. The lesson there is that since trends come and go, hold on to those old Coach leather handbags - they might be all the rage next year!

Coach was started more than fifty years ago as a family business. From a Manhattan loft, six leather artisans developed a collection of superior quality leather bags and accessories using time-honored skills passed down through generations. Soon the Coach reputation began to spread, and customers with discriminating tastes began looking for the Coach brand by name. The first inspiration for Coach bags came from the simple beauty and rugged durability of a classic American baseball glove. When Coach's founder noticed the glove's distinctive markings and the supple texture of the worn leather, he began working on his own design - refining it, making it simultaneously softer and stronger, he created Coach's first leather handbag. To this day, modern leather finishes, unique leather grains and colors, and innovative materials are at the forefront of Coach's design process. But this baseball glove-tanned leather remains a Coach tradition. And those first leather bags are more beautiful today than ever before.

Coach has always maintained the absolute highest standards in both their materials and workmanship. They operate on a much larger scale than in the days of the Manhattan loft, but the integrity of their workmanship remains and their reputation is firmly in place as part of American history and culture. Coach handbags and Coach purses are available from the official Coach website, or you can check out some of the popular auction sites for a vintage Coach purse or Coach handbag that's sure to be as beautiful as when it was first made.

Believe it or not, there was a time when I owned only ONE bag. Shocked? Don't be. I'm a pretty practical girl, I don't particularly like clothes and modern day fashions... to me, a purse (more commonly referred to as a "bag" now) was to carry your money and brush around, and maybe sometimes food into the local theater. :) It was a simple purse, given to me second hand by my mom. I liked it because it had a cell phone pocket on the side that was a perfect fit for my cell phone.

I remember when I was younger my mother liked Dooney and Bourke bags. Back then I believe there was only the ever-so-fashionable "Duck" bag. Whenever we spotted a Dooney bag, everyone would exclaim, "Duck alert! Duck alert!" She wanted one badly, but didn't have any money. My stepfather told her if she rolled up all of his pennies (he had saved for years!) she could use them to buy a DB bag. I don't remember well how long it took, but I remember she finally finished, and bought her precious Dooney and Bourke bag. Since then of course, she has gotten several other DB and Coach bags. I never understood her obsession.

Many years later, when I was old enough to work, I began working in a Subway-type establishment. It wasn't the best kind of work, but it suited me at the time. There I met several girls. One in particular LOVED bags. Each and every kind of bag you can think of, but her main obsession was COACH. At first, I could never understand WHY she wanted a bag that was maybe 10 x 10 inches, yet cost over a hundred dollars. After all, a purse (not quite a "bag" to me yet) was to hold your money, right? Why be so fancy? She had MANY Coach bags, all different shapes and sizes. Every day it seemed, she would bring another Coach bag to work, each to match her outfit. (From what I learned from her, black and brown bags go with everything.)

I often went to the mall, which was about forty minutes away. Halfway to the mall, every Saturday there was a flea market. There you would find many things, like fruit, vegetables, fake logo t-shirts, and, most recently, fake bags. I went once with my boyfriend, and spotted a fake Coach bag. It was very cute, chestnut brown with obviously pleather trim. I liked this bag in particular because you could both carry it low to your side as well as use another strap to hang on your shoulder. It was $20. Of course, I snatched it up. I also purchased that day a fake Coach wallet, that I thought matched (Another lesson learned: your wallet ALWAYS has to match your bag) at the time, but in better lighting, I realized it didn't quite match.

I carried this bag for quite a while, and before long, I started buying other types of bags from various places like Wal-Mart, Target, the mall, et cetra. I was beginning to change my bag every day too, to (try to) match my outfit. Oh, the horror!

Then one day, it happened: My girlfriend brought in this particular Coach bag. A brown Signature Soft Demi. I LOVED this bag! I tried it on, and opened it: Oh my gosh! It had TONS of room! I had to get this bag! Since we worked on a military base, there was a Navy Exchange store just down the street. My girlfriend told me they had the same bags, only in Mini Signature, at the NEX. We worked for tips, so I saved. Once I got paid and added in my tips, I had enough! Luckily the bags at the NEX are MUCH cheaper than the Coach store or other department stores. We drove there during a break at work, and I withdrew the money at the ATM machine outside of the NEX, and I gave her the money. Since she is a military wife, she could purchase items from the NEX, and I couldn't. We grabbed the black and white Mini Signature Soft Demi and paid for it. Score! It was only $125! From then on, I was a Coach Addict!