Kate Spade plans furniture future
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The luxury apparel retailer has announced four new licensing agreements – for bedding, bath, wallpaper, rugs, furniture and household items, according to a report on Bloomberg.
In the first year, Kate Spade aims to sell US$100 million to US$150 million worth of the new lines, representing a fraction of its total turnover. But if it makes target in the year it will encourage a broader international rollout of the new categories, and further expansion of the range.
“The breadth of our home décor line will feature products at all access points in both pricing and distribution from an $8 notebook to an $8000 piece of furniture,” Kate Spade CEO Craig Leavitt said.
Bloomberg opines the move would make Kate Spade more like Ralph Lauren, and differentiate it from other fashion rivals like Coach, Michael Kors and Tory Burch “which don’t sell couches”.
Questions & Answers
Q.What new product categories has Kate Spade announced through licensing agreements?
What new product categories has Kate Spade announced through licensing agreements?
Kate Spade has announced agreements for bedding, bath, wallpaper, rugs, furniture, and other household items. These new product lines will broaden the brand's offering beyond its traditional luxury apparel.
Q.What is Kate Spade's sales target for these new lines in the first year?
What is Kate Spade's sales target for these new lines in the first year?
In the initial year, Kate Spade aims to sell between US$100 million and US$150 million worth of the new products. This target represents a small proportion of the company's overall turnover.
Q.What is the strategic significance of this move for Kate Spade, according to Bloomberg?
What is the strategic significance of this move for Kate Spade, according to Bloomberg?
Bloomberg suggests that this expansion will make Kate Spade more akin to Ralph Lauren. It also helps to distinguish the brand from fashion competitors like Coach, Michael Kors, and Tory Burch, none of whom offer furniture.
Q.What is the planned price range for the new home décor items?
What is the planned price range for the new home décor items?
The home décor line will feature a wide range of products at various price points and distribution channels. Prices will span from an £8 notebook up to an £8,000 piece of furniture.
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