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company. In addition, more than 80% of the manufacturer's luggage production was sourced from China.

The Fashion and Leather Goods business group of LVMH Mot Hennessy Louis Vuitton SA, which was the largest contributor to the latter's revenues in 2010, derived nearly half of its value sales from Asia (including Japan) in 2010. Similarly, Prada SpA derived over 40% of its global sales from Asia in the year ending January 2011. Given the established importance of Asia in global operations, the rise of the Asian consumer and his/her spending power has compelled manufacturers to formulate region-specific strategies to tap into this growing demand. Apart from providing funds for ambitious retail and distribution expansion in neighbouring markets, public listings on Asian stock exchanges equip global brands with localised consumer brand recognition and popularity amidst potential business partners. Owing to their initial public offerings (IPOs) in 2011, Samsonite and Prada raised US$1.25 billion and US$2.1 billion, respectively. US-based Coach Inc is also expected to list on the HKEX sometime in late 2011 or early 2012. Market potential and plans to tap into it According to Euromonitor International, China and India were among those markets with the lowest per capita expenditure on travel goods in 2010. As shown by the chart below, China, India and Japan are projected to register healthy growth in the number of international departures (source: Euromonitor International, Travel and Tourism) over 2011-2014, spurred further by the development of budget airlines. These statistics potentially translate into strong value sales growth for

travel goods such as luggage and backpacks, thus justifying the investment in these markets. Travel Goods Follow the Silk Route to Asia Article | 26 Sep 2011 Travel Goods Growth: Asia vs Rest of the World