Teenage Brand Kate Spade: Can New Designers Bring Good News?

Date of establishment: 1993
Company: Tapestry group
Main products: clothing, bags
Founder or designer: Kate Spade
In late October, Kate Spade, who had not been in China for a long time, organized the Mini show to show the latest autumn and winter series. As a former "light and extravagant three tycoon", this appearance is somewhat "shabby".
It has been two years since the acquisition of Tapestry group in May 2017. Kate Spade is still in its original position. The development problems faced by the acquisition were not solved. In order to acquire the brand, Tapestry Group paid a price tag of 2 billion 400 million US dollars. At that time, group CEO Victor Luis believed that the Kate Spade brand style of whimsical, humorous and fashion sense was different from Coach's positioning, so that it had a sense of existence in the millennial consumer group and had higher growth potential.
Unfortunately, the reality is not satisfactory. In the past two years, the performance of Kate Spade has not improved significantly. Tapestry group's latest August 15th 2018/2019 financial year fourth quarter performance data show that net sales in the Kate Spade period increased 6% to $1 billion 370 million compared with the same period last year, and the world's comparable sales volume declined by 7% over the same period last year, while operating profit dropped 26.9% to 300 million US dollars in the same period, and the operating profit margin was 7.8%. Jefferies analyst Randal J. Konik believes that the target audience of Kate Spade is the millennial generation, which means the future is unpredictable. "The millennial generation is capricious". Therefore, Kate Spade wants to occupy the market with their preferences and maintain sustained and steady growth. It is impossible for them to find factors and enhance their attractiveness.
To this end, Tapestry group hired Nicola Glass, a designer who worked in Gucci and Michael Kors for Kate Spade in 2018, and launched its first series in September 2018. It has become the only industry praised by the industry after its acquisition. It has also played a certain role in improving the efficiency. However, it is still a long time before we want to "reinvigate itself".