[CIIE] US Owner of Coach, Kate Spade to Open 100 Stores in China in Next Two, Three Years

Tapestry, the US owner of designer brands Coach, Kate Spade New York, and Stuart Weitzman, plans to open about 100 new stores in China over the next two to three years.

Tapestry will expand its presence in China, adding around 100 new stores to its existing 400 in 90 Chinese cities, from tier-one to tier-four, Seth Sandeep, chief growth officer and president of Tapestry International, said during the Eighth China International Import Expo that wrapped up in Shanghai yesterday.

This year was Tapestry's seventh appearance at the CIIE. The company showcased 20 new models of Coach's iconic Tabby bag, available for customization services tailored for young consumers seeking self-expression.

"China is a very important market for us," Sandeep noted, adding that the company has manufacturing facilities and a global design center in Dongguan, Guangdong province. "And of course, there's a massive consumer market for us here."

Tapestry wants to be available and easy to reach for China's fast-growing middle-income group, according to Sandeep. "Digital and e-commerce are a big way for us to reach many of these consumers, but we also know that youngsters want to go to physical stores, so we are going to continue increasing our footprint in the country."

Tapestry continues to invest in China, Sandeep pointed out. "Seventy percent of our future growth will come from international markets, and China will be the biggest growth opportunity in the coming three to five years."

Geopolitical tensions will not have a severe impact on Tapestry's investment plans in China, he noted. "As long as the environment and policies remain favorable, China will continue to be a place we invest."

Tapestry quadrupled its marketing investment in China over the past few years and continues to carry out market tests to strengthen brand awareness across the country, he said.

Sandeep was then asked about artificial intelligence integration. He explained that Tapestry does not have an AI strategy, as the company uses AI as a tool to implement its growth strategy. "We don't want to run after shiny objects and be first at everything, but we want to adopt technology that is proven."

Tapestry uses AI to optimize its supply chain, create digital twins, and improve planning and forecasting, as well as for media targeting and content customization, Sandeep said.

Beyond increasing its store count, Tapestry is also following other paths to expand its presence in China. The company runs a program called China Cool in collaboration with Donghua University to drive new creative approaches. It also partnered with candy brand White Rabbit a couple of years ago.