Tapestry CEO Joanne Crevoiserat on Brand Growth, Gen Z Consumers, and Luxury Market Positioning

Tapestry's Amplify Growth Strategy

• 🚀 Tapestry, owner of Coach and Kate Spade, is implementing a new growth strategy called Amplify.
• 🎯 The company aims for mid-single-digit annual revenue growth through fiscal year 2028, building on record revenue of $7 billion last year.
• 💡 The strategy leverages existing structural capabilities and transformations to achieve ambitious goals.

Reigniting Growth at Kate Spade

• 💖 Kate Spade is described as an iconic brand with high consumer awareness but a perceived lack of relevance.
• 🔑 The opportunity lies in bridging the gap between consumer awareness and purchasing by improving execution and relevance.
• 🛠️ Tapestry plans to re-engage customers by understanding their needs more deeply, similar to the successful playbook used with Coach.
• 👜 The Duo bag launch, informed by Gen Z consumer insights for versatility, exemplifies this approach.

Coach's Growth and Market Positioning

• 📈 Tapestry has an ambition to grow the Coach brand to $10 billion over time.
• 💰 Coach offers unbeatable craftsmanship and quality at a price point that doesn't require saving for months, differentiating it from ultra-luxury brands.
• 🤝 The focus is on building relationships with more consumers, particularly young ones entering the market.

The Gen Z Consumer and Accessibility

• 🎓 Tapestry is targeting young consumers entering the market, such as the 25 million women turning 18 annually.
• 🛍️ This demographic is moving from high school to college and is a key target for first-time handbag purchases.
• ⚖️ The value proposition of accessibility is crucial for this young consumer, contrasting with the significantly higher price points of brands like Chanel.
• 📈 Winning these first purchases is seen as a way to expand the market and build long-term brand loyalty.