Coach, Inc. (COH) And Three Fashion Companies Expanding in China That Offer Sexy Returns

The Gap Inc. (NYSE:GPS) hopes to have as much as 85 stores in China, representing an aggressive push in to the coveted and highly-regarded market. While The Gap is considered to be somewhat late to the party, there is no doubt that the company can succeed even if the market is crowded with competition. In addition to playing the Chinese growth story, The Gap Inc. (NYSE:GPS) is also expanding aggressively to other emerging markets, such as Brazil and India.

Source: Here & Now and AP:  Western brands, such as Gap plays a part of daily life in China.

Conclusion

Just how sexy can returns be?  Well, it’s important to put things in perspective.  Just three years ago the Chinese luxury goods market represented 2% of global sales.  In only seven years from now, this number is projected to be close to 20% of global sales. This essentially implies that for every $100 in global revenue from a luxury-goods maker, $20 will come from China. Investors will be greatly rewarded with a little bit of patience while we sit back and watch hundreds of millions of Chinese people enter the middle class and demand luxury products.

The Chinese fashion market is receiving a lot of attention, and it is a remarkable story to follow. Rapid economic growth is changing the dynamics of the population, and in addition to fashion items, other luxury goods, such as high-end spors cars, are in great demand. Companies with a successful Chinese presence can leverage less-than-stellar sales from other key markets and can still provide shareholders with respectful returns.

The article 3 Fashion Companies Expanding in China That Offer Sexy Returns originally appeared on Fool.com is written by Jayson Derrick.

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