With its new cafeteria, Coach wants to make more frequent trips to its stores and solidify its profits with buyers of the Z generation. One of its menu elements is a tied cake, a dessert inspired by the cake that has the shape of the coach's talked bag.
Courtesy: coach
In the new stores of the coach, the last bag is made of cake dough and colorful tones of white chocolate.
The recent adventure of the manufacturer of inherited leather bags is a cafeteria that offers sweets -shaped sweets, cafes with pumpkin and pumpkin flavor, matcha drinks and more. Each store is attached to a store that sells the alignment of bags, sneakers and other garments and accessories of the coach.
On Friday, the company opened another location of the Coach cafeteria, the third in the United States, in Los Molinos de Jersey Gardens, a shopping center of approximately 16 miles to the southwest of New York City. The coach will open the room at the points of sale of Woodbury Common Premium, also in the metropolitan area of New York City, on October 3.
It plans to open about 12 to 15 coffee shops every year worldwide, while adding to the menu, rotating seasonal food and drinks and selling exclusive Bags and other goods, said Marcus Sanders, vice president of global food and drinks in Coach.
With coffee shops, the fashion brand owned by Tapiz wants to take advantage of recent profits with buyers, particularly the Z generation, providing customers with more reasons to continue returning to their stores.
“We understand that the consumer loves the experience today,” said coach Todd Kahn's CEO. “They want a complete experience, particularly the young consumer.”
The coach is not the only retailer who has tried to create experiences for customers. Ralph Lauren It has coffee shops called Ralph's and a restaurant, El Polo Bar. Luxury furniture and home decoration retail RH He has opened restaurants throughout the country and even a hotel, called Rh Guesthouse, in New York City. And Uniqlo opened its first cafeteria in North America earlier this year inside its clothing store on the fifth Avenue of New York City.
Café
Courtesy: coach
Sanders, who previously worked for Starbucks and Ralph Lauren Hospitality, said that coffee shops offer a more friendly price than trainers merchandise, especially for young adolescents. On a recent visit to the coach's cafeteria in Austin, Texas, he said that he saw two teenagers divide a cake stunned in half and climb the pieces to each other while they recorded a video of Tiktok.
Some of those teenagers do not have the budget now for a bag, but they can become future buyers, Sanders said. And even older customers have limits on how many fashion purchases can make in a month or year, he said.
“You can pay a coffee more frequently,” he said. “So I think that is what we are excited is that our clients can visit us more frequently.”
Building on the growth of generation Z
The coach is trying to take advantage of the impulse of the brand that promoted sales growth, brings new customers and caused stock profits. The company has increased the average paid by buyers for their products at a time when many retailers depend on promotions. His stock market charms have lay on Tiktok and his large Kisslock frame bag, which is sold for $ 695, he was exhausted even before Carrie Bradshaw took him in an episode of “Sex & The City” by Hbo Max, and simply. “
The actions of its parent tapestry, which also includes the Kate Spade brand, has risen around 67% so far this year or around 600% in the last five years.
The coach has won a particular traction with generation Z, which covers approximately 13 to 29 years. The retailer said he attracted 4.6 million new clients in North America in the most recent fiscal year that ended on June 28, including more than 1 million in the fourth quarter. Almost 70% of those new clients in the last fiscal year were generation Z and millennials, the company said.
The coach has also erased the distinction among their retail channels with the behavior of those youngest buyers in mind. He dropped the word “departure” of the signs outside their starting stores and is selling more of their best -known full price items in those places along with the most striking destinations such as the fifth New York Avenue.
Kahn said he began experimenting with the approach about two years ago, but added more full price goods to the points of sale last year after customers learned to compete to their nearest store for a coach article they had seen on social networks and discovering that it was not there.
“Since Covid, particularly for this younger generation, there is a return in real -life purchases and shopping centers and points of sale are part of that equation,” he said in a CNBC interview. “Come the image of Tiktok. They see what they want. They are like, 'I want to go looking for that'”.
On an investor day this month, Kahn said that he and the company have continued studying the changing behavior of buyers, especially the tastes and dislikes of General Z. On a recent plane trip, he said he saw the Netflix animated film “Kpop Demon Hunters”, a choice that he joked he probably surprised the passengers on his side.
He said on investors day that the coach is on the way to becoming a brand of $ 10 billion, although he did not give a schedule. That will have abrupt growth for the coach, who registered annual income of approximately $ 5.6 billion in the most recent fiscal year.
Dana Telsey, a retail analyst and CEO of Telsey Advisory Group, said the coach has gained ground when sharpening her marketing and development of articles of items, such as her tied bags or Soho shoes, which attract the following but continue to leave new fabrics and colors.
In addition, he said that ultra luxurious bag players have increased significant prices, which has given the coach the ability to increase their own prices and at the same time seems like a good business.
“It is the quality and aesthetics of fashion that has differentiated it for me and has allowed consumers to say: 'This is worth it,” he said.
However, the coach now has another reason to focus on maintaining his price fixing power. The highest rates will cost your parent company $ 160 million in the next fiscal year and drag Tapestry's profits, an update that caused a sale of investors in August.
How coffee plays in coach's strategy
One of those routes to increase income and keep customers return will be through coffee shops. The coach first opened a cafeteria and a restaurant in Yakarta, Indonesia. Its Asian southeast market is used as a testing field, since the area has a fast -growing medium class and many buyers of the Z generation, Sanders said.
Since then, he opened locations in Tinton Falls, NJ in December and Austin, Texas, in January. It plans to open new locations in Massachusetts, California, Arizona and Texas, together with parts of the west media.
In other parts of the world, he has opened 16 coffee shops, with locations in China, Japan, South Korea and Indonesia.
The coffee shops are connected to the trainers store and are designed to encourage buyers to consider other purchases along with their drink or refreshment, said Leigh Manheim Levine, president of the North American coach. For example, he said that the coach established the exhibition of his best -known bags, such as Tabby and Brooklyn, in view of customers when they are standing at the cashier to buy a coffee.
She said stores will be profitable businesses on her own. Until now, its merchandise has been an important sales driver, which represents approximately 30% of the general income of coffee shops. The locations sell bags of bags, water bottles, pins, sweatshirts and more that are transported exclusively by the Coach cafeteria and cost more than a milk with milk.
Many of them, like a handbag that is sold for $ 95, present to Lil Miss Jo, a cartoon cafeteria logo that the company, according to the company, was inspired by the diners of New York City.
Manheim Levine said that the exclusivity of the merchandise is part of the appeal.
“They are shopping with their friends,” he said. “They are taking photos. They want to get what other people can't have.”
The locations of the coffee shops of the coaches sell merchandise, such as bags and sweatshirts, along with drinks. The icon of the store is Lil Miss Jo, a cartoon character inspired by the diners of New York City.
Courtesy: coach
Most of the new coffee shops in the US will open at Outlet Malls, said Manheim Levine. Many of its approximately 190 points of sale in North America are in shopping centers without food options, which creates more opportunities for the company, he said.
“Why we believe that our strategy is a winning strategy is that it is also solving a problem for the client,” he said.
Sanders said that coffee shops have caused a stronger pedestrian traffic and longer times in stores, encouraging customers to have dinner and buy. And in trainers locations that have a cafeteria, sales have seen a double or triple digit increase throughout the store, he said.
On one day of the week earlier this month, Desiree Aguilar traveled about an hour and 10 minutes to visit The Coach cafeteria in Tinton, New Jersey, with her aunt and her minor cousin. Aguilar, a 32 -year -old radiology from Hawthorne, NJ, said he learned about the store through a Tiktok video, who aroused his curiosity, especially because he loves purchases.
After asking for a coffee with pumpkin milk and a ham and croissant cheese sandwich, Aguilar took a turn around the motorway store with his drink in his hand while sailing through the new autumn merchandise.
“I liked not having to rush to drink my drink and I could buy,” he said.
He left with a new coach bag and a matching wallet, totaling around $ 200, along with a new Instagram post on the cafeteria.
