The luxury handbag company Tapestry plans to generate roughly 70% of its upcoming growth from overseas markets, with expansion efforts concentrated in China and Europe.
Speaking to Reuters on Monday, Tapestry CEO Joanne Crevoiserat explained that the company currently has limited market penetration in international regions.
“Our penetration right now is relatively lower in international markets,” Crevoiserat stated.
While China represents approximately 15% of the American company’s current business, Crevoiserat sees substantial growth opportunities, especially with younger shoppers.
“There is so much more potential if we think about the population in China, particularly with young consumers,” the CEO noted, explaining that Tapestry wants to become customers’ first luxury handbag purchase to establish lasting brand loyalty.
According to Crevoiserat, the company’s Chinese sales have increased by double digits during the past two years, even as the overall handbag market experienced weakness.
“We see a tremendous opportunity to continue to grow in that market,” she commented during the Financial Times Business of Luxury Summit in Italy, mentioning that the company is boosting its investments in the region.
In Europe, which represents about 6% of overall sales, Tapestry has changed its strategy from targeting tourists to focusing on younger shoppers and residents.
When questioned about possible mergers and acquisitions, Crevoiserat indicated that Tapestry is concentrating on natural growth by strengthening Coach’s performance and revitalizing Kate Spade’s expansion.
