"Sales of Coach will continue going up in China, after Chinese buyers realize it is only a fashion brand rather than a luxury," said Zhou Ting, director of the Fortune Character Research Center.

It's not just Coach, but other fashion brands, usually called "light luxury" in China, are also getting business opportunities in recent years, while the luxury market growth is slowing down, she said.

Statistics from Bain & Co show that the annual growth of China's luxury market is expected to show only a 2 percent increase in 2013, following a 7 percent rise in the previous year. The slowdown is expected to continue in 2017.

The production lines of luxury brands are getting polarized, the US-based consulting firm said in its report on China's luxury market. Twenty-five percent of luxury bags in China were priced below 5,000 yuan ($826), while 33 percent of them cost more than 20,000 yuan.

Another significant reason for the increase in Coach's sales in China was that the brand diversified its products in the nation's market, Zhou added.

However, Coach will not enjoy China's market exclusively in the long term because other international fashion brands are also exploring it, business insiders said.

Such fashion brands as Michael Kors and Kate Spade present strong competition to Coach. Most of their prices and target customers overlap, Zhou said.

Questions:

1. How did Coach do in China?

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