Luxury Brand Coach surprised the industry when it announced that it is changing its name to Tapestry, Inc.. But only because they went with the name “Tapestry”
The name change is happening because of the luxury leather goods brand’s recent acquisitions of Stuart Weitzman in 2015 and Kate Spade & Company this summer.
Now that it has a stable of brands, beyond Coach, a new umbrella name seemed appropriate.
Street reaction to the name Tapestry has been surprisingly negative
Jim Fosina, CEO of Fosina Marketing Group doubts that it will affect customers or brand loyalists.
“The consumer facing brand name won’t change and it is doubtful whether a branding change in the parent will really mean much to the Coach, Kate Spade, Stuart Weitzman customers,” he recently told Retail Dive.
The move comes in a month of acquisition and merger news in the luxury brand industry.
The transformation of Coach to Tapestry is the culmination of a three year mission to take the company to the next level.
Other highlights of that transformation:
Bringing on luxury designer Stuart Vevers to lead creative for the Coach brand,
Upscaling the brand’s image by drastically cutting back on Coach‘s presence and discounting in department stores,
And of course, the acquisition of the brands Kate Spade and Stuart Weitzman.
Coach CEO Victor Luis was brought in three years ago after a very competitive process in part because of his experience in luxury fashion.
In those three years, Luis has brilliantly executed his vision for transforming Coach into a global holding company of affordable luxury,”
Luis said the company is in a “defining moment” in its corporate reinvention.
The new identity will become official as of the 28th of October this year.
Some in the industry foresee aggressive moves and some far ranging ambition..
According to Marik Aryapadi, from global strategy firm A. T. Kearney, the new corporate announcements are basically a threat to the big three European fashion houses of LVMH, Kering and Richemont.
“Beware, the Americans are coming!!,” ..or something along those lines.
LVMH of course is the worlds largest luxury brand, owning such French suberbrands as Luis Vuitton, Christian Dior, and Moet & Chandon.
Coach’s rebranding as ‘Tapestry‘ is seen as a public signal that they are serious about moving from a ‘branded house’ to a ‘House of Brands’.
Given the international stature of both the Kate Spade and the Stuart Weitzman labels, that house will have a very luxurious feel.
Taking a new identity is also a good strategy for a House looking to expand its family.
There is little doubt that Tapestry is looking to grow their portfolio, —-perhaps a first step will be to renew their efforts to acquire Burberry,
This shift to multiple brands underneath a luxury umbrella seems to be a trend. Both Michael Kors and Tapestry announcing acquisitions and identity shifts that make them major contenders in the fashion luxury sector.”
The acquisitions are seen to be in response to the decline of brick and mortar retail and the rise of online shopping. The thinking is that customers will be more readily attracted to direct online sales if there are several attractive brand offerings under a single roof.