Kate Spade Acquisition Will Add Millennial Shoppers to Coach Customer Base

Coach Inc. is an iconic fashion brand, but it is currently aiming to shift gears and sink its teeth into the millennial market. The company recently made a move to acquire Kate Spade, an established upscale fashion brand aimed at women. Approximately 60% of Kate Spade’s customers are millennials, which gives Coach the perfect opening into their desired demographic. In their article about the acquisition, MarketWatch addresses the difficult part of all mergers: integrating the smaller, niche brand into the larger, more established one.

Coach’s road to a successful transition lies in establishing Kate Spade’s independence as a brand and maintaining the proper talent to stay on the right track. The acquisition also provides an opportunity for Kate Spade, as Vivaldi CMO Agathe Blanchon-Ehrsam notes: “Kate Spade and Coach have a similar heritage in handbags, but Kate Spade was able to develop more brand elasticity than Coach and did a better job penetrating new categories such as apparel and jewelry. Kate Spade should benefit from the acquisition through access to broader, global distribution and perhaps management support with growing its men’s business.” 

Both Coach and Kate Spade have an opportunity to grow and help one another, but precise tactics and execution will be needed on the part of both brands.