Many Chinese women will be able to look like a "tai tai" or a Canto starlet, while boosting the exchange traded fund (ETF) focused on luxury items, thanks to Coach (COH).
Hong Kong is as label-conscious as Los Angeles, probably more so, where the identity of a womens’ place on the social pecking order is determined by her bag. Fancy European leather bags are a staple of tai tais and starlets, and now may Chinese women are making a dash for the luxury goods houses during city shopping sprees, reports Frederik Balfour for BusinessWeek.
Now enter the world of Coach, an alternative to European bags, yet still with the high-end stigma. Coach international has now opened a flagship store in Hong Kong, debuted May 29, and is now hoping to be aspirational for a new class of emerging consumers. A Coach bag costs anywhere from $200-$400, topping the premium segment, and bottoming at the luxury segment. Thousand dollar python bags are available for those who would like them.
Claymore/ROBB Report Global Luxury (ROB) will likely benefit from this spending, Coach makes up 3% of the ETF. It’s down 10.1% year-to-date.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.