What: Coach launches its first duplex travel retail flagship in Hainan, featuring China's first Coach Café and Gen Z-focused Coachtopia collection within the CDF Sanya complex.

Why it is important: This development signals Coach's adaptation to changing Chinese consumer preferences, where successful retail concepts now require a mix of experiential elements, youth-focused offerings, and strategic partnerships with major duty-free operators.

Coach has marked a significant milestone in its China expansion strategy with the opening of its first duplex travel retail flagship store at the CDF Sanya International Duty Free Shopping Complex in Haitang Bay. The innovative store concept introduces China's first Coach Café, offering a unique blend of dining experiences featuring coffees, signature desserts, and local Hainan delicacies. This new retail format strategically incorporates the brand's Gen Z-targeted Coachtopia range, demonstrating Coach's commitment to engaging younger consumers. The development builds on Coach's established presence in China's travel retail sector, following the establishment of their China Travel Retail headquarters in the Hainan Free Trade Port in 2022. Through their partnership with China Duty Free Group (CDFG), Coach aims to contribute to the development of the Hainan Free Trade Port while creating enhanced shopping experiences for their customers.

IADS Notes: Coach's new duplex travel retail flagship in Hainan's CDF complex exemplifies the evolving landscape of luxury retail in China. The integration of the Coach Café aligns with findings from April 2024 showing Chinese consumers' growing preference for entertainment and experiential retail spaces . This trend is particularly relevant as November 2024 data reveals that 95% of Chinese travelers now incorporate shopping into their journeys . The store's focus on Gen Z through its Coachtopia range is strategically sound, considering that this demographic will represent 30% of all travelers by 2030 and actively seeks immersive, experiential retail concepts . The partnership with China Duty Free Group follows a broader industry trend, as demonstrated by the successful DFS and Douyin collaboration in March 2024, which showed how luxury retailers can effectively blend physical and digital experiences to engage younger consumers .

Coach’s first duplex travel retail flagship store opens in China