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Coach Outflanking Vuitton in China With $400 Handbags

Corina Su aspires to someday own a handbag or shoes from luxury brands like Louis Vuitton or Gucci. For now, Kate Spade, Michael Kors, or Coach will do.

“We call these the American trendy brands,” said Su, a 25-year-old who works in advertising in Shanghai. She prefers Kate Spade’s bright colors and bold designs to the more muted styles offered by the big European luxury houses that tout their heritage to justify charging more.