Currently, the company has more than 100 retail outlets around the country. "We believe that through expansion and increased productivity, we can grow at least 20% annually in constant currency, doubling our sales base over the next four years and taking our market share to our goal of 15%, from about 8% today," says Lew Frankfort, chairman and CEO of Coach. "We now believe we could have at least 130 retail locations throughout Japan, including at least 15 flagship locations, more than double the current number."

Coach entered the Japanese market only in 1988, selling its bags at Mitsukoshi, a major Japanese department store. Later it added freestanding retail stores, and in 2001 it established Coach Japan Inc. and acquired PDC, the Mitsukoshi subsidiary that had distributed Coach products in Japan. Since then, sales have been on a fast upward track, growing over the past three years to about 30 billion yen ($280 million).

Japanese women have taken to the brand in a big way, despite years of a stagnant economy. Much of the brand's success probably stems from occupying a position between very expensive European handbags (Louis Vuitton is still the market leader, with Coach second) and much less expensive Japanese handbags. But the bags aren't cheap, an import point for Japanese buyers: A Coach tote runs about 80,000 yen ($750), but smaller bags cost about 45,000 yen ($420). The company characterizes its products as an "accessible luxury," and claims that two out of three of its new customers previously purchased European luxury bags.