"Gen Z is carrying Coach - literally and figuratively. That demographic of shoppers, born between 1997 and 2012, is the "center of the bull's-eye" for the luxury handbag brand, according to Scott Roe, CFO and COO of Coach's parent company Tapestry. Now, Tapestry wants to replicate the success it has had with Coach for Kate Spade, which it acquired in 2017."
"Coach zeroed in on Gen Z out of necessity. Roe told Langley that the company was looking at data, which estimated that, by 2030, about 70% of handbag purchases were going to be made by either Gen Z or millennial buyers. But the average age of Coach buyers was 40, he said. "We said, well, that's a problem," Roe recounted. "We got to get younger.""
"Just like Coach, Kate Spade is "targeting" Gen Z, Roe said. "We like 18 years as a point of entry. That's when a young lady goes from upper school or high school into college," Roe said. "They typically go from a backpack to a bag.""
Tapestry has successfully attracted Gen Z shoppers to Coach and plans to apply the same strategic approach to Kate Spade. Company data projected that by 2030 roughly 70% of handbag purchases will be made by Gen Z or millennials, while the average Coach purchaser was age 40, creating urgency to reach younger buyers. Coach efforts drove 1.7 million new customers in a recent quarter and contributed to $1.7 billion in quarterly revenue, up 13% year-over-year. Tapestry intends to target 18-year-olds as a key entry point as they transition from backpacks to bags.
Read at Business Insider
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