Tapestry, parent company to several well-known brands including Kate Spade and Coach, has been highly focused on how to better engage with consumers via product innovation. The company shared its strategic approach in a recent call with investors and earnings report.
According to Joanne Crevoiserat, CEO of Tapestry, the company has been fueling its product innovation efforts by tapping into customer research, analytics and data, and interactive experiences.
And, so far, the company is seeing results.
“Overall, our product innovation, supported by the use of data and consumer insights throughout the product creation process, fueled a high single-digit global handbag AUR growth at constant currency including gains in North America.
The use of data, she said, is helping Tapestry brands to deepen their understanding of consumer preferences, and it’s driving growth in several business areas. Across omnichannel efforts, it’s helping the company to better resonate with its audience and communicate the brand’s purpose and self-expression.
Why Innovative Experiences Matter
In order to emphasize these efforts, Tapestry has also been testing and launching several experiential and immersive retail concepts across the globe “creating opportunities for customers to engage their senses throughout their brand and product discovery journeys.”
In Chicago, Japan and Singapore, for example, the company’s Coach brand launched Coach Play — the first in a series of concept stores that encourage consumers to “play in coach spaces.”
“These highly interactive locations are bespoke, balancing design elements of the brand's heritage with local elements to connect with each store's community,” said Crevoiserat.
Tapestry is doing something similar with its Taavi partnership, creating pop-up store environments inspired by ice cream shops, and leveraging these efforts across digital channels to reach a broader audience.
The company has also rolled out a new store concept, launching first with Marina Bay Sands in Singapore last October. The new store model can now be found across the globe in more than 15 locations.
“As a result of our focus on connecting with consumers in new ways, we drove an increase in the number of active customers in the quarter, fueled by engagement with our existing client base, including growth in reactivated customers,” said Crevoiserat.
Tapestry’s priority, she said, is becoming more global by maintaining focus on meeting target consumers wherever they shop around the world. “We remain steadfast in our commitment to building enduring brands and relationships with consumers, and we're investing behind these priorities.”
This article first appeared on the site of sister publication RIS.