Tapestry Weaves Consumer Data Through the Value Chain
Tapestry’s expects its CapEx and cloud computing costs to be in the area of $300 million and approximately one-third of this spend will be related to openings and renovations with the balance dedicated to ongoing digital and IT initiatives, including investment in a new fulfillment center in Las Vegas, NV.
“We are leveraging [consumer data] through the full value chain from product creation as we understand and do market mapping and understand what our consumers are looking for from our brand as well as from our product — including the younger consumer — and we are leveraging it as we think about how we market and which products resonate with which consumer bases,” she noted.
Tapestry has a technology infrastructure that is allowing it to harness consumer data and embed it into the decision making that's happening day-to-day,” she explained. The capability is revealing opportunities to drive higher lifetime value.
“We understand how customers are coming into our brands, what they're likely to purchase next in terms of driving frequency, and how we engage them more fully in our brand and not just in one product at one price.”
This capability hinges on having a direct-to-consumer platform and a modern technology infrastructure that allows Tapestry to move very quickly to apply new technology, to allow it to utilize that data even better, she explained.
Coach CEO and brand president Todd Kahn noted data is informing the brand upfront, not just in hindsight, and the company is tapping it to inform pricing, promotions, and placement.
“It really informs everything we do,” he said. “I'm very excited by the platform.”