Coach’s former CEO said Gen Z reminds him of his generation.
Speaking to Bloomberg in an interview released on Sunday, ex-CEO Lew Frankfort said he started at the New York City-based luxury company 45 years ago.
“So I’ve seen generations change, and Gen Z is the generation that’s most similar to my generation, the sixties,” he said.
“They’re very value-driven,” Frankfort added. “They’re concerned with climate, they’re concerned with authenticity, truth, being who they are, and relationships.”
Frankfort joined Coach in 1979 and served as the company’s CEO and chairman from 1985 through 2014. He sought to position Coach as an “accessible luxury” brand.
Coach’s current CEO, Todd Kahn, started in the role in 2020 and led the company into its current Gen Z-focused era.
Kahn said in the Bloomberg interview that Gen Z customers are “very, very thoughtful about their purchases” and like to shop in physical stores, making shopping an experience.
Coach has resonated with budget-conscious Gen Z consumers because it sells products priced lower than those of other luxury brands.
Gen Z is big business for Coach. A 2023 consumer spending report by market research firm Earnest Analytics found that consumers under 25 increased their spending at Coach by 10% from January through June that year.
To attract more of this consumer base, Coach has doubled down on its charm range in recent years, catering to Gen Z’s love for bag charms, trinkets, and collectables. The cherry-shaped charm was a Gen Z favorite, said Joanne Crevoiserat, the CEO of parent company Tapestry, during a May earnings call.
The company is also bringing in Gen Z celebrities into campaigns and as brand ambassadors, such as rapper Lil Nas X and K-pop artist Lee Youngji. Celebrities like Bella Hadid have been spotted carrying Coach bags.
Coach reported sales of $2.14 billion in the latest quarter, a 25% increase from the same period the year before. It had 330 stores in North America and 619 stores internationally, as of December.
Tapestry’s stock has risen about 85% in the past year.
Read the full article here
