Get the exclusive scoop on how Tapestry—the parent company of iconic brands Coach and Kate Spade—is transforming its business for a new generation of luxury buyers!
In this unfiltered chat with Yahoo Finance, Tapestry CEO Joanne Crevoiserat discusses the massive “exponential growth” opportunity in front of Coach (an 85-year-old heritage brand) and Kate Spade (born in 1993).
The New Luxury Consumer
Crevoiserat breaks down their strategy for targeting Millennials and Gen Z, who are expected to account for 70% of the leather goods market by 2030. Forget “status armor”—today’s young consumers value self-expression, community, and brands that reflect their personal values. Tapestry aims to capture the “first luxury bag purchase,” which they know “fosters brand love for a lifetime.” They see a huge total addressable market with 25 million women turning 18 every year as a major opportunity for this “point of market entry.”
Retail and Innovation
We dive into how Coach maintains its longevity by blending “magic and logic,” focusing on beautifully crafted products and deep customer insights. Contrary to the “mall apocalypse,” physical stores are thriving, serving as approachable, community-building touchpoints where consumers can even “co-create” their products, like personalizing bags with charms in Coach Play stores.
Defying Economic Headwinds
Discover how Tapestry is putting up strong results despite broader consumer challenges by delivering unmatched value and quality across all touchpoints. This intentional approach includes selling their highest-priced collection items in outlet stores to meet customer demand and improve the overall brand experience.
Chapters
00:00 – Welcome Tapestry CEO Joanne to the show
00:40 – Early days in the transformation journey
01:29 – Coach’s 85-year heritage and cultural impact
02:34 – Coach’s secret: blending magic and logic
03:30 – Deeply understanding the new generation consumer
04:42 – Self-expression over brand armor and status
06:18 – Gen Z loves shopping in physical stores
08:01 – 70% of luxury market will be Gen Z
09:45 – Fostering brand love with the first bag
12:15 – Coach Play: Co-creating the store experience
27:26 – Defying headwinds by delivering unmatched value
31:37 – Lessons from GM CEO Mary Barra’s transformation
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