Here’s a bold statement: Gen Z is reshaping the luxury handbag market, and brands are scrambling to keep up. But here’s where it gets controversial: while Coach has already captured the hearts (and wallets) of this young demographic, Kate Spade is now stepping into the ring, aiming to replicate that success. Can they pull it off? Let’s dive in.
By Sydney Bradley (https://www.businessinsider.com/author/sydney-bradley)
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2025-12-09T21:29:00.478Z
Gen Z, born between 1997 and 2012, has become the holy grail for luxury brands, and Coach has been leading the charge. According to Scott Roe, CFO and COO of Tapestry (Coach’s parent company), this demographic is the "bull’s-eye" for the brand’s future. And this is the part most people miss: Tapestry isn’t stopping with Coach. They’re now applying the same playbook to Kate Spade, a brand they acquired in 2017, in hopes of winning over Gen Z.
In an exclusive preview of Monica Langley’s Office Hours: Business Edition podcast, Roe revealed the strategy behind this move. The urgency? Data shows that by 2030, Gen Z and millennials will account for nearly 70% of handbag purchases. Meanwhile, Coach’s average buyer was 40 years old. "We said, that’s a problem—we need to get younger," Roe explained. And it worked. Coach’s recent earnings call highlighted 1.7 million new Gen Z customers and a 13% year-over-year revenue increase to $1.7 billion.
Now, Kate Spade is next in line for the Gen Z treatment. Roe emphasized that the brand is targeting 18-year-olds, a pivotal age when students transition from backpacks to handbags. "It’s a natural point of entry," he noted. But how will they make Kate Spade a household name for this demographic? Increased marketing spend is step one, with products like the Duo Crossbody Bag taking center stage as holiday must-haves.
Social media is another key player. While Roe didn’t detail Tapestry’s influencer partnerships, he acknowledged that platforms like YouTube and Reddit are crucial for getting Gen Z to consider the brand. Here’s a thought-provoking question: With Gen Z’s spending power often tied to their "six wallets" (two grandparents and parents), are brands like Kate Spade exploiting family finances, or simply tapping into a realistic market dynamic? Let’s discuss in the comments.
However, winning over Gen Z isn’t without challenges. "They have endless options," Roe admitted. "Breaking through the noise is harder than ever." Tapestry’s solution? Triple down on marketing. "We’re committed to keeping that momentum going," Roe added.
As Kate Spade follows Coach’s lead, the real question remains: Can they capture Gen Z’s attention in an oversaturated market? Only time will tell. What do you think? Is Kate Spade’s strategy a smart move, or are they too late to the party? Share your thoughts below!
- Marketing (https://www.businessinsider.com/category/marketing)
- Gen Z (https://www.businessinsider.com/category/gen-z)
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