Luxury brand you love now needs advertising
Steve’s breakdown: The headline is: Coach Changes Name to Tapestry to Reflect All Its Brands. Carbone Smolan Agency advised them on the rebranding but here’s the thing, they don’t do advertising. BAM! New biz lead!
The accessories company announced Wednesday, Oct. 11, that it’s rebranding as Tapestry Inc. and will change its ticker symbol to TPR, effective Oct. 31. The rebranding follows the July 11 close of its acquisition of fellow accessories maker Kate Spade and comes two years after its addition of shoe company Stuart Weitzman for $574 million.
Because of the acquisitions, “we are now at a defining moment in our corporate reinvention, having evolved from a mono-brand specialty retailer to a true house of emotional, desirable brands, all leveraging our strong operational foundation,” Coach CEO Victor Luis said in a statement. The name change allows the company to establish “a strong and distinct corporate identity, which enables our brands to express their individual personalities and unique language to consumers,” he added.
Coach isn’t the only American branded accessories company branching out with acquisitions. Michael Kors Holdings Ltd. (KORS – Get Report) , for instance, paid $1.35 billion for Jimmy Choo plc over the summer, closing the deal weeks after Coach closed its Kate Spade acquisition.
Coach may want to become an “American LVMH,” a “diversified luxury group” similar to the French conglomerate which owns brands like Louis Vuitton and Marc Jacobs,” HSBC analysts wrote in a recent note. “Mono-brand companies, at least in soft luxury (handbags, accessories, apparel) are a risky investment as fashion, by essence, comes and goes,” they wrote. “In that context, diversity offers a natural hedge.” Grouping brands also provides synergies, learning opportunities and diverse management, they added.
HSBC even predicted the name change, “for obvious internal and external reasons.”
Branding agency Carbone Smolan Agency advised Coach on the rebranding.