World Footwear


Forecasting the growth for Tapestry

Jan 28, 2019 United States
Forecasting the growth for Tapestry
We have asked Victor Luis, the man heading the Tapestry group, to share with us his expectations about the business prospects of each brand of the group. Tapestry's portfolio includes Coach, Stuart Weitzman and Kate Spade
In the last three years, with the acquisition of Stuart Weitzman and Kate Spade, Tapestry’s portfolio of products diversified. When we questioned Victor Luis if there is room for further growth opportunities for Tapestry, he didn't hesitate: "Absolutely! We see significant opportunity for Tapestry across brands, channels and geographies".

China: a significant opportunity

Getting into more detail, the man heading Tapestry told us that one of the most significant geographic opportunities is China, where the category growth continues to "outpace overall global growth for all of the group's brands". With the Coach brand the proposition is clearly identified: a beautiful and confident New York fashion positioning, based on a performance of the brand over the years. Kate Spade has a clear and differentiated positioning in the market, which has been embraced by consumers globally – especially urban millennials in Asia and Europe, in addition to the US. He added: "We are very excited about the growth opportunities for Kate Spade in Greater China, where we took operational control of the joint ventures for the Mainland, Hong Kong & Macau, and Taiwan in 2018. With only 50 locations in Greater China today, we see significant distribution opportunity for Kate Spade". China seems to show potential for the Stuart Weitzman brand as well: "While our iconic styles are very well known in China, we have a significant opportunity to drive the brand's awareness. The 50/50 boot style is well known, especially among Millennials. We see an opportunity to build on this solid foundation, driving brand awareness through new stores as well as marketing – one of the things we’re quite excited about is the launch an influencer project in China". The group was been working on strengthening the presence of the Stuart Weitzman brand in this market, opening an array of new locations.

The role to be played by Europe

Mr Luis said: "We also continue to believe that Europe is a significant opportunity for our brands, where all three of our brands are underpenetrate. The handbag and accessories category is an 11.5 billion dollars market, with Europe representing 25% of global spend. The premium footwear category is 6.5 billion dollars, with Europe representing 21% of global spend. Lastly, outerwear is a 4 billion US dollars market where Europe has higher penetration – around 33% of global spend". From an American sensibility standpoint, the brands attractive, accessible price points make the products by Tapestry an alternative to European heritage luxury brands. The brands of the group also play with the fact that heritage brands, which played an important role in territories like France and Italy, are becoming less important to younger consumers. for example, Coach is earning recognition for being a brand that’s confident and cool without trying too hard. The other two brands are also clear about their positioning: "Kate Spade is gaining traction – particularly in the UK – for the same attributes we resonate globally: distinctively fun, fashionable and feminine. Stuart Weitzman is appreciated by European customers for its chic sensibility and fit. There’s also a significant opportunity across classification – particularly in the sneaker category, where we are increasing our offering". In a nutshel, Tapestry is working on building brand awareness in Europe with local consumers through strong wholesale partnerships, while focusing on having key flagship locations which appeal to both local consumers and tourists.

Keep tuned to read more about Victor Luís views of the accessories and fashion market. To recall the main challenges of Victor Luis while heading Tapestry READ ALL ABOUT IT HERE.

About Victor Luis

After attending the College of the Holy Cross and the Durham University for completing his BA and MA, respectively, Victor Luis began his career with several marketing and sales positions. Then he took the reins as Baccarat’s Chief Executive in 2002 for four years. Before being appointed to the role of Chief Executive Officer at Coach in 2014, Luis served on the brand’s leadership team since 2006 in various roles. In 2017, the group was renamed Tapestry Inc. and Victor Luis continued as the CEO of the group.

Photo by Roland Denes on Unsplash