"Nagoya is expected to be one of the highest-volume Coach locations in Japan, and will represent our fourth flagship location outside of the Tokyo area, following locations we will have opened in Sapporo, Osaka and Sendai during the last six months," says Ian Bickley, president and CEO of Coach Japan Inc. "Our sales and market share gains in Japan have been dramatic, as our business has grown rapidly during the last few years."

Though generally regarded as difficult to crack, especially in light of the decade-long sluggishness in the economy that's only now abating, Japan is nevertheless a highly coveted market for luxury goods, since brand loyalty is often fierce among the Japanese. Until recently, most of Coach's business in Japan has been at boutique locations within established department stores.

"Accelerating our flagship openings—notably outside the Tokyo area—is a key part of our strategy to grow our market share in Japan, along with expanding highly productive shop-in-shops," says Lew Frankfort, chairman and CEO of Coach Inc. "Nagoya in particular is a market where the Coach brand is underdeveloped and therefore represents significant potential."