Tapestry, Inc. (TPR): Business Model Canvas

Introduction

The fashion and lifestyle industry has been growing exponentially over the years, with the demand for luxury goods increasing at an unprecedented rate. In the United States alone, the personal luxury goods market is projected to reach 88.5 billion USD by 2025, growing at a CAGR of 4.8% during the forecast period. With consumers becoming increasingly conscious about the brands they choose and the products they buy, companies must adopt innovative business models that cater to their needs.

Tapestry, Inc. is a prime example of such a company, employing a multi-brand business model canvas that offers a diverse selection of luxury handbags, accessories, footwear, and apparel under Coach, Kate Spade New York, and Stuart Weitzman brands. The company has established a strong foothold in the industry, with distribution channels in specialty stores, e-commerce platforms, and department stores around the world.

As the market continues to grow, Tapestry, Inc. aims to expand into new geographies and product categories, such as men's fashion, to increase its market share and profitability. Additionally, the company invests heavily in innovation, digitalization, sustainability, and diverse talent to improve customer experience, brand image, and corporate social responsibility.

• Personal luxury goods market in the US will reach 88.5 billion USD by 2025
• Tapestry, Inc. operates under a multi-brand business model canvas
• The company designs, manufactures, and markets luxury handbags, accessories, footwear, and apparel under Coach, Kate Spade New York, and Stuart Weitzman brands
• The company has established a strong distribution network worldwide
• Tapestry, Inc. aims to expand into new geographies and product categories to increase its market share and profitability
• The company invests in innovation, digitalization, sustainability, and diverse talent to enhance customer experience, brand image, and corporate social responsibility

Key Partnerships

Tapestry, Inc. recognizes the importance of having strong partnerships to support our business operations and goals. Some of our key partnerships include:

• Suppliers: We work closely with our suppliers to ensure we have access to high-quality materials and textiles for our products. Our relationships with these partners are crucial to our ability to create beautiful and durable items.
• Retailers: Our retail partners allow us to connect with our customers and showcase our products on a global scale. We work with a diverse set of retailers, including department stores, specialty boutiques, and online retailers.
• Digital Platforms: Our digital partners help us reach our customers in the digital world. We leverage social media platforms, e-commerce marketplaces, and other online channels to showcase our products, build brand awareness, and provide an easy and convenient shopping experience.
• Manufacturers: We partner with manufacturers to produce our products efficiently and cost-effectively. Our partnerships with manufacturers enable us to scale our production while maintaining our high standards of quality.
• Industry Associations: As a leading brand in the fashion and lifestyle industry, we collaborate with industry associations to stay up-to-date on the latest trends and technologies. We are active members of the Council of Fashion Designers of America (CFDA), the National Retail Federation (NRF), and other relevant associations.

Our key partnerships allow us to create top-quality products, expand our reach, and build a strong brand presence in the market.

Key Activities

The key activities of Tapestry, Inc. include:

• Designing and producing high-quality handbags, accessories, and footwear
• Identifying and targeting specific customer segments based on demographic data and market research
• Developing and implementing marketing and advertising campaigns to increase brand awareness and drive sales
• Cultivating relationships with suppliers to ensure reliable and cost-effective sourcing of materials
• Managing inventory levels and supply chain logistics to minimize costs and maximize efficiency
• Establishing and managing retail locations, including designing and merchandising store layouts to optimize sales
• Developing and maintaining strong relationships with customers through exceptional customer service and targeted loyalty programs
• Investing in research and development to continually innovate and improve product offerings
• Managing financial performance through strategic planning, budgeting, and analysis

These key activities are critical to the success of Tapestry, Inc. as they enable the company to create and market high-quality products, build brand recognition and loyalty, maintain efficient operations, and drive financial growth.

Key Resources

Tapestry, Inc. is a leading luxury fashion company that operates internationally. In order to operate effectively and provide high-quality products and services, the company needs a range of key resources to support its operations.

Manufacturing facilities

• Tapestry, Inc. relies on having accessible and efficient manufacturing facilities to produce its products. These facilities are equipped with modern technologies and tools required for the production of quality goods, meeting the high standards of the luxury fashion industry.

Supply chain and distribution network

• The company has a well-planned and established supply chain, which provides the necessary raw materials, fabrics, and accessories for its manufacturing processes. Tapestry, Inc. maintains healthy relationships with suppliers globally, ensuring the availability and quality of materials.
• The company also has a reliable distribution network that efficiently delivers its products to different parts of the world. This includes partnering with several courier, shipping, and logistics companies to ensure timely delivery.

Human resources

• The company values its employees and hires qualified, skilled and experienced individuals in all departments including design, marketing, operations, sales and more to support its operations effectively.
• Tapestry, Inc. runs training programs and provides support for employee career growth and skills development to enhance employees' knowledge, skills and boost productivity.

Brands and intellectual property

• Tapestry, Inc. is known for its premium brands, which includes Coach, Kate Spade and Stuart Weitzman. These brands are well established in the market and are protected by intellectual property laws carrying considerable revenue potential for the company.

Financial Resources

• The company requires significant financial resources to support its operations, which includes investments in technology, innovation, research and development, marketing, manufacturing and more.
• The company raises funds through various sources, including equity, bank credits, lines-of-credit, IPOs and bond markets, to finance its operations and ensure continuity.

Value Propositions

• High-quality products: Tapestry, Inc. prides itself on delivering high-quality Tapestry products to our customers, which include brands like Coach, Kate Spade, and Stuart Weitzman. We ensure that every product that leaves our factories maintains our high level of quality and meets our customers' expectations.
• Appealing designs: Our team of expert designers continually creates beautiful and compelling designs for our products, from leather goods to footwear, that capture the latest trends and styles. This ensures that our products stand out in the market, attracting a wider range of customers.
• Exceptional customer service: At Tapestry, Inc., we believe that providing exceptional customer service is instrumental in building brand loyalty. Our highly trained and knowledgeable customer service team is always available to support our customers through their shopping experience, from answering questions to handling returns and exchanges.
• Broad product line: Our broad product line includes a wide range of Tapestry products, including leather goods, footwear, and accessories. By offering a variety of products, our customers can select from a wide variety of products that cater to their unique tastes and preferences.
• Emphasis on sustainability: Tapestry, Inc. values protecting the environment and promoting sustainability. Our products are made with eco-friendly materials, and we work to minimize our environmental impact at our production facilities, warehouses, and stores. Our customers can feel good about purchasing Tapestry products that align with their values.
• Loyalty program: We have a loyalty program that rewards our frequent customers with exclusive benefits. Our customers can earn points on their purchases, which can be redeemed for discounts, special offers, and access to exclusive events.

Overall, Tapestry, Inc. aims to provide customers with high-quality products, appealing designs, exceptional customer service, a broad product line, and a commitment to sustainability. Through these value propositions, we strive to build brand loyalty and customer satisfaction.

Customer Relationships

Tapestry, Inc. (TPR) is committed to building strong and lasting relationships with our customers. We believe that our success as a company is directly tied to our ability to provide exceptional service and experiences to our customers.

Our customer relationships are built on a foundation of trust, authenticity, and personalized attention. We strive to understand our customers' needs and preferences so that we can tailor our products and services to meet their unique needs.

We have developed a multi-channel customer service approach that allows us to connect with our customers through various touchpoints. These include:

• In-store experience: Our retail stores are designed to create a warm and inviting atmosphere that welcomes customers and makes them feel at home. Our sales associates are trained to provide personalized attention and assistance to customers with their purchases, making recommendations based on individual preferences.
• Online experience: Our eCommerce platform offers a seamless shopping experience for customers who prefer to shop online. We offer a customer service chat feature that allows customers to connect with a representative in real-time for personalized assistance with their purchases.
• Customer loyalty program: We offer a Rewards program that incentivizes repeat purchases and rewards customers for their loyalty. Members receive exclusive discounts, early access to new products, and free shipping on all orders.
• Social media presence: We maintain an active presence on several social media platforms to connect with our customers, share new products and promotions, and engage with our community.

Overall, we are committed to fostering long-term relationships with our customers by providing exceptional service and experiences at every touchpoint.

Channels

Distribution Channels:

Tapestry, Inc. will primarily distribute its products through various channels. These channels will include its own retail stores, websites, and its wholesale distribution partners. The company will continue to leverage these channel strategies to achieve its sales targets in the most efficient manner possible.

• Retail Stores: Tapestry, Inc. has a global network of retail stores that carry their brands, which provide customers with an immersive brand experience. The company will continue to invest in its retail stores to ensure their continued success.
• Websites: Tapestry, Inc. will also sell its products via websites. Customers can browse for products online and place an order. The company will continue to invest in its e-commerce website to improve customer experience.
• Wholesale Partners: The company will continue to partner with wholesale distributors to ensure its products are available to consumers via other retail outlets

Marketing Channels:

Tapestry, Inc. will also use various marketing channels to reach and interact with potential customers.

• Brand Website: The company will drive traffic to its main website to promote its brands and products.
• Social Media: Tapestry, Inc. will use social media channels, including Facebook, Twitter, Instagram, and Pinterest, to drive social engagement with its brand.
• Advertising: The company will use print, TV, and online advertising to reach a wider audience.
• Events: Tapestry, Inc. will participate in and host events to drive brand awareness and customer engagement.

After Sales Channels:

Tapestry, Inc. will aim to maximize customer satisfaction by providing exceptional after-sales services.

• Customer Service: The company will provide a dedicated customer service team to assist customers with any post-purchase queries or issues.
• Warranty and Repairs: Tapestry, Inc. will offer warranties and repairs for its products to ensure customer satisfaction.

Customer Segments

To create a successful business model canvas for Tapestry, Inc., it is important to identify the specific customer segments that will be targeted. The following customer segments have been identified for Tapestry, Inc.: Luxury Handbag Users: This customer segment is the core customer segment for Tapestry, Inc. The company's brands, which include Coach, Kate Spade, and Stuart Weitzman, are primarily focused on designing and selling luxury handbags. Women: The majority of Tapestry, Inc.'s customers are women. Women are more likely than men to purchase luxury goods, particularly handbags, so this customer segment is crucial to the success of the company. Millennials and Gen Z: Tapestry, Inc. is shifting its focus towards millennials and Gen Z customers. These customers are more likely to purchase luxury goods online, and Tapestry, Inc. is investing heavily in its e-commerce capabilities to reach this customer segment. Affluent Consumers: Tapestry, Inc.'s luxury handbags are expensive, and the company targets affluent consumers who are willing to spend a significant amount of money on a handbag. This customer segment values high-quality products and is willing to pay a premium for them. Lifestyle Customers: Tapestry, Inc. has expanded its product offerings beyond luxury handbags to include clothing, footwear, and accessories. The company targets lifestyle customers who are interested in the entire Tapestry, Inc. brand rather than just its handbags. Tapestry, Inc. recognizes the importance of understanding its customers' needs and desires in order to successfully target and serve these customer segments. By focusing on luxury handbag users, women, millennials and Gen Z, affluent consumers, and lifestyle customers, Tapestry, Inc. can develop effective marketing strategies and products that meet the needs of its customers.

Cost Structure

Tapestry, Inc. operates on a cost structure that is largely dependent on some key factors, which are highlighted below:

• Production Costs: Tapestry, Inc. has to invest in raw materials, manufacturing equipment, and labor to produce its product offerings. The cost of these activities is a significant expense that must be carefully managed.
• Marketing and Advertising Costs: Tapestry, Inc. invests heavily in marketing and advertising to create brand awareness and drive sales. This includes expenses related to market research, creating ad campaigns, and media buying.
• Distribution Costs: Tapestry, Inc. incurs expenses related to the transportation and logistics of its products. The company must manage inventories, warehousing, and shipping to ensure that products are available to customers.
• Personnel Costs: Tapestry, Inc. relies on a team of talented professionals to run its operations, including designers, sales staff, and management personnel. The company must provide competitive compensation and benefits to retain its valuable employees.
• Administrative Costs: Tapestry, Inc. must bear expenses associated with all of its administrative activities, including IT infrastructure, legal compliance, and accounting and finance.

Tapestry, Inc. is committed to managing its cost structure in a way that allows it to offer high-quality products and services while remaining competitive in the marketplace.

Revenue Streams

Tapestry, Inc.'s primary revenue streams are generated by the sales of its luxury fashion products, including leather goods, accessories, and clothing items. These products are sold through various channels, including Tapestry's own branded retail stores, department stores, specialty stores, and e-commerce websites.

The company's revenue streams are also derived from the following:

• Licensing: Tapestry, Inc. has entered into licensing agreements with various partners that allow for the use of its brand name and intellectual property. Revenue is generated from the royalties paid by these partners.
• Services: Tapestry, Inc. provides various services, such as repair and customization services, to its customers. These services generate revenue for the company.
• Wholesale: Tapestry, Inc. sells its products wholesale to other retailers and distributors. The company generates revenue from the sale of products to these wholesale customers.
• International: Tapestry, Inc. generates revenue from its international operations, including sales of products and licensing fees, primarily in Asia, Europe, and North America.

In addition, Tapestry, Inc. continues to explore new revenue streams through strategic partnerships and acquisitions.

Conclusion

After a thorough analysis and discussion of Tapestry, Inc.'s Business Model Canvas, it can be concluded that the company has a strong foundation for sustained growth and success in the fashion industry.

• The company's strong portfolio of luxury brands, including Coach, Kate Spade, and Stuart Weitzman, provides a diverse and attractive product offering to consumers.
• Tapestry, Inc.'s commitment to sustainability and corporate social responsibility is evident through their initiatives in ethical sourcing, reduction of waste, and community involvement.
• The company's omni-channel approach, which includes a robust e-commerce platform and brick-and-mortar stores, allows for convenience and accessibility for customers.
• The organization's emphasis on innovation, particularly in the areas of data analytics and technology, will provide a competitive advantage in the rapidly evolving retail landscape.

Overall, Tapestry, Inc.'s Business Model Canvas exhibits strengths in various areas of the business, positioning the company for continued growth and success in the future.