Episode 35: A Tapestry Made of Leather

In this episode of Brick & Data:

  • Coach is now Tapestry (sort of) and people are losing their minds
  • Under Armour isn’t Cool Anymore
  • Amazon Flexing its supply chain muscles once again

Coach is now Tapestry (but isn’t) and people are losing their minds

http://www.npr.org/sections/thetwo-way/2017/10/12/557287019/coach-changes-corporate-name-to-tapestry-brand-name-is-unchanged

  • It’s been a very busy 10-12 months for Coach. They barely look like the company they were last year.
  • Now Coach Inc (the corporate monicker) is called Tapestry. A holding company for Coach, Stuart Weitzman, and Kate Spade. Important to note that Coach still exists.
  • Coach has been Coach since 1941, when it began as a family-run workshop in Manhattan with handmade wallets and billfolds. The company announced three years ago that it would reinvent itself — evolving from a “monobrand specialty retailer to a true house of emotional, desirable brands.”
  • This is similar to what other retailers, tech companies, and media groups have done in the past.
    • Google’s restructure in 2015, naming Alphabet its holding company
    • Urban Outfitters (URBN) with Anthropologie, Free People, Urban Outfitters, in addition to a few other smaller companies

Under Armour isn’t Cool Anymore

http://www.businessinsider.com/under-armour-not-cool-teens-survey-says-2017-10

“Under Armour’s brand perception among America’s youngest consumers is falling.

According to Piper Jaffray’s newest Taking Stock of Teens survey, teens just aren’t into Under Armour anymore. It was the No. 1 brand that upper-income male teens said they are no longer wearing for the full year, according to the survey.

In a ranking of preferred apparel brands among upper-income male teens, Under Armour fell into 11th place, down from 8th place a year ago. It fell from 6th place into 9th place among average-income male teens. “

“In a survey of young male consumers by Wells Fargo earlier this year, Under Armour shoes ranked near the bottom in terms of favorability.

For comparison, the young male consumers who were surveyed ranked Adidas at 70%, and Nike at the top with 81%. Participants could check as many boxes as they wanted.

That’s not the end of the bad news for Under Armour, however. In another survey question, the bank asked which brands the participants were more interested in purchasing than before, and which they were less interested in purchasing. About 33% of the respondents said they were less likely to buy Under Armour shoes, and only 17% said they were more likely to buy them. That put Under Armour dead last with a net rating of -17%.”

Amazon Flexing its supply chain muscles once again

http://www.retaildive.com/news/Amazon-Seller-Flex-UPS-FedEx-analysis-retail-supply-chain/506727/

With ‘Seller Flex’ Amazon is piloting a new delivery service component where it would transport vendor packages to customers’ homes directly from a warehouse. This would increase the number of Prime Goods and free up warehouse space. This will help it optimize its logistics chain, reduce costs and expand 2-day delivery around the country.

Amazon’s…approach signals a rising reliance on data and vertical integration by retailers. At the same time, it also shows the need for managed services by those companies lacking Amazon’s resources. The news is further evidence that last mile logistics and optimizing the supply chain are top of mind for retailers right now…’

The event, based on a report by Bloomberg’s Spencer Soper:

  • The service, dubbed “Seller Flex,” is in a pilot phase in West Coast states, but Amazon plans to expand it in 2018.
  • Seller Flex seeks to help Amazon boost the number of goods eligible for its Prime free two-day delivery and free up warehouse space, Retail Dive’s Daphne Howland reports.
  • The report was hardly controversial, except for one line that suggests Amazon is going after UPS and FedEx: Seller Flex) will push the online retailer deeper into functions handled by longtime partners UPS and FedEx Corp

The words sent UPS and FedEx’s shares tumbling in pre-market trading, forcing the companies to go into damage control and issue the following statements to MarketWatch, among others: “Amazon is a valued customer. We support all our customers with industry-leading e-commerce solutions and expect to expand these relationships further in the future,” UPS said in its statement.

 

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