“Coach is cool.” That’s the mantra from Giorgio Sarne,
President Coach International at the US leather goods maker, who speaks to MJ Rabbit about the company’s quest to transform itself into a luxury lifestyle brand
under Executive Creative Director Stuart Vevers. Vevers was appointed in 2013, after a stellar stint at
Spanish label Loewe, where he was credited with creating highly desirable
leather goods. “We’ve had an amazing reaction to Stuart’s appointment,”
confirms Sarne. “He has the ability to re-energise our heritage, history and
craftsmanship. It’s very refreshing; he can bring back our history, and our
glamorous past.”
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| Giorgio Sarne, President Coach International |
New Coach 1941 label debuts in New York
Vevers has a very clear vision, says Sarne. “Coach is the original
American house of leather, which creates an opportunity to be a cool, genuine
authentic alternative to a European idea of luxury.”
So how does Coach define “cool”? “Stuart is inspired by New
York and American workwear. Modern luxury is effortless, it’s about New York,
style, urban, energy… It’s understated. It’s about showing your individuality.
He’s adding a lot of fashion to the brand. We held our first women’s fashion
show in New York in September and we will continue in this direction.”
In a major development, the company presented its Coach 1941
collection, a new luxury label, at its first-ever full catwalk show in
September. The Spring/Summer 16 collection, comprising bags and ready-to-wear,
with a particular focus on outerwear, has received positive feedback, says
Sarne, and the products will be arriving in-store soon. The bags, such as the
Saddle bag, draw on Coach’s archives with a twist of original inspiration, but
the apparel is an all-new venture for the leather goods brand.
Why launch ready-to-wear? Sarne is clear. “If you want to be
a modern luxury lifestyle brand, you need the full expression of your world.
The Coach 1941 collection has a distinctive design and is an elevated
expression of our brand, at a slightly higher price, but still an approachable
price. It’s an exploration of what Coach can be and a platform for innovation,
and it speaks to very fashionable consumers. It’s still Coach, but it completes
our offering.”
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| Coach Swagger Carryall |
Travel retail plays a major role in strategy
Sarne is eager to emphasise the brand’s past – words like
heritage, history, archives are frequently repeated with relish – and the
company itself is keen to celebrate its 75th anniversary, which falls in 2016.
In fact, the celebrations have already started. The New York runway show in
September was the beginning, and very ambitious plans lie ahead. “We want to
reinforce the idea that Coach is cool,” enthuses Sarne.
On retail expansion, the priority will be on the US, China,
Europe, while continuing to invest in all the other countries where it is
present. Sarne calls the strategy “360-degree investment”, in which marketing,
product design and stores all get the transformative treatment. For the latter,
the consumer’s in-store experience will be a particular focus. “We want to
deliver a unique, personal experience in-store.”
Speaking to MJ Rabbit at the TFWA World Exhibition in October 2015, where Coach
showcased its Spring/Summer 2016 collection to travel retail buyers, Sarne confirms that travel retail plays a major role in its strategy.
“Travel retail is a continent by itself and it’s key for us. The potential is
huge when you see the evolution of tourism and the predictions for the next
five or ten years. Travellers are curious, educated, and we want excellent
service in these stores – the same level of quality and service as in domestic
locations.”
Coach already has a strong travel retail presence in Asia,
notably China, Japan, South Korea and southeast Asia, and is set to boost its
footprint “at a good rate” in the US, and now in Europe, where Sarne sees very
high potential. A Coach boutique recently began trading in Paris Charles de
Gaulle airport, an important milestone for the brand.
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| Coach Ace Satchel in natural calf leather - burgundy |
The global consumer is important now
Across the operation, Sarne also sees further huge potential
in the men’s business, which he describes as “unbelievable – a great business”.
“We’re a leader in the men’s business and we have ambitious plans that are
already happening.”
Turning to consumers, Sarne confirms that the Chinese
customer is an important part of the business, but he emphasises that this
high-spending group is not the only good customer. “Japanese and Americans are
very important, and we have new, emerging consumers, such as southeast Asians,
Indians and Europeans. What’s important now is the global consumer.”
Under Vevers, the new product pipeline is in full swing. For
2015/16, Sarne cites four key bags with fresh, updated designs: the Coach
Swagger statement bag, marketed with a “What’s your swagger?” campaign in line
with its confident, swaggering attitude; the Ace satchel collection – “a
fantastic expression of the Coach vision”; the soft, slouchy Coach NoMad Hobo
bag; and the Shadow Crossbody bag in a saddle bag shape with chain strap. The
patchwork design in the latter model features rip-and-repair stitching, a
feature of American baseball gloves. Sarne loves this level of detail.
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| Coach NoMad Hobo in natural calf leather - butterscotch |
Social media "extremely important"
Regarding the company’s performance in the first half, Sarne
says Coach is growing its market share in many regions. “In the international
market we’re performing very well in many regions of the world – both domestic
and tourist markets.”
As Coach sets out to spread its fresh brand message, social
media is “extremely important”, asserts Sarne. The company uses all the major
social sites, including Line in Japan. Coach now has more than 2m fans on the
Chinese microblogging site Weibo and 100,000-plus on WeChat. “We can reach
consumers one-to-one and have a real connection with them. We can quickly
inform them about our stories and heritage. It’s a way of communicating in an
authentic and direct way as we share every part of our world.”
Speaking about his expectations for performance in 2015 and
beyond, Sarne says that Coach is investing in the future of the brand as its
long-term strategy, with investments across the board in stores, products,
markets, and innovations. Coach is in the process of renovating its fleet of
stores in line with Vevers’ vision. “We’re implementing a global transformation
and we’re happy with what we’re seeing.”
