When news of Kate Spade starting to close its Saturday stores in Singapore hit, I thought that the designer label was in troubled waters. Never mind that they said it was a move to concentrate more on their Kate Spade New York brand. But I guess things are looking better for them after Coach, another designer handbag maker, said it would buy Kate Spade & Co for a whooping $2.4 billion (S$3.4 billion).
According to Forbes, the acquisition will give Coach ownership of a smaller handbag and accessories rival with a strong Millennial following. Kate Spade also has a growing lifestyle business and in recent years has introduced products like bedding and kitchen accessories.
It is no wonder that Coach is buying over Kate Spade to gain a foothold in the younger demographic segment. Even back then, 10 years ago, when I was considered young, I grew up starting my designer bag collection with Coach & Kate Spade before advancing onto the more ‘mature’ and ‘expensive’ labels. I remember my first “luxury designer” bag was a Coach one given to me by my boyfriend (now turned husband). And along the way, I started purchasing my own Kate Spade bags after receiving my first few pay checks from working.
Coach is in the midst of both an image and business makeover. In 2014, Stuart Vevers, formerly of Loewe and Mulberry, was brought in as the brand’s new executive creative director, and was charged with emphasizing the brand’s history of luxury and establishing he brand as a ready-to-wear clothing player as well. In conjunction, the brand also decided to greatly pull back on the amount of merchandise it sold at midlevel department stores, and put more of an emphasis on its own retail and online sales efforts. Selena Gomez was also brought in as the new face of the brand after singing a deal rumored to be worth $10 million. (Source: Wmagazine)
Let’s just hope that things would start turning out great for Kate Spade and that they would continue to churn out the trendy and edgy styles which they are known for. Because I cannot imagine how it would be like if they start getting influenced by Coach’s designs. Truth be told, Coach designs are dated and I stopped at just one bag.