Coach is buying Kate Spade to reach the Millennial market. According to Coach, about 60% of Kate Spade customers are Millennials, while Coach draws a decidedly older demo; one consumer even tweeted that Coach is “boring,” “brown,” and “unoriginal.” But despite Kate Spade’s comparative appeal to youth, the company has been struggling to turn a profit in the competitive handbag industry, and Coach will be cutting back on the brand’s “deep discounts” and “online flash sales”. (Reuters, Washington Post)
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