Coach has closed its biggest business deal yet. At a "bargain" of US$2.4 billion, the New York-based fashion house has brought over Kate Spade in an attempt to tap into their rival’s position in the millennial marketplace.
Best known for its quirky and whimsical take on fashion (case in point: its recent Moroccan-inspired collection for Spring/Summer 2017), it's no surprise that Kate Spade often strikes a note among the younger population. “Kate Spade has a truly unique and differentiated brand positioning with a broad lifestyle assortment and strong awareness among consumers, especially millennials.” said Victor Luis, the Chief Executive Officer of Coach.
With the acquisition, Coach states they are committed to preserving the Kate Spade brand as well as retaining key talent, to ensure a smooth transition to the merger of the brands. Coach believes that with the merger will unlock Kate Spade’s largely untapped global growth potential and turn around their luck in the anaemic handbag market.
Image: Coach 1941 Women’s Pre Fall