FASANO, Italy, May 19 (Reuters) – Tapestry expects about 70% of its growth over the next few years to come from international markets, with the Coach handbag owner’s expansion plans focused on China and Europe.
“Our penetration right now is relatively lower in international markets,” Tapestry CEO Joanne Crevoiserat told Reuters on Monday.
China accounts for about 15% of the U.S. company’s business, but offers significant potential, particularly among younger consumers.
“There is so much more potential if we think about the population in China, particularly with young consumers,” Crevoiserat said, adding that Tapestry aims to become a first luxury bag purchase, which helps build long-term brand loyalty.
Tapestry’s sales in China had been growing by double digits over the last two years, at a time when the market for handbags actually was weak, she added.
“We see a tremendous opportunity to continue to grow in that market,” she said on the sidelines of the Financial Times Business of Luxury Summit in Italy, adding that the group is increasing investments in the area.
In Europe, which accounts for around 6% of total sales, Tapestry has shifted its focus away from tourist-driven demand toward younger consumers and local customers.
Asked about potential M&A, Crevoiserat told the event that Tapestry is focused on organic growth, building on momentum at Coach and reigniting growth at Kate Spade.
(Reporting by Elisa Anzolin; Editing by Alexander Smith)
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