It was a $2 billion business deal.
Millennials love Kate Spade so much Coach just bought the brand for $2.4 billion. Everyone owns a Kate Spade product and with the decreasing popularity of Coach, let’s face it, the company needs another hype woman.
The marrying of these two brands aims to create a “house of modern luxury” and the associated lifestyle that comes with it. In the past year, Kate Spade has increased the brand’s cool factor with advertising campaigns and products inspired by internet obsessions ( like this cactus phone case) and other whimsical prints.
This deal comes shortly after Coach purchased Stuart Weitzman for $600 million dollars in 2016. It is obvious that Coach wants a place on the global fashion stage. They want to target the new middle class. And moreover, it will soon be competing with LVMH ( the company that owns Chanel, Louis Vuitton, Moet & Chandon, Dior and many other brands). Could this power move really mean that Coach will rival and give LVMH a run for its money and customers?
A genuine leather large Kate Spade bag cost less than $300. While the same purse from an LVMH brand could costs over $1,000. The difference is obviously the price and these days Millennials want quality AND quantity. Endless options that don’t say “I’m cheap.” After all, the economy is fluctuating on jobs where fighting for that $100K salary means lying, cheating and stealing just to get over that bracket to the top. Brands like Coach and Kate Spade have always stayed consistent in price range, value, and design when it comes to appealing to a demo facing a lot of woes. Who doesn’t own a vintage Coach?!
Good move, Coach! Now don’t do any more of those cheesy logo bags bags and you’re golden, k?
Click ahead to see new styles from Coach and Kate Spade.