How Coach's Iconic Tabby Bag Climbed to the Top of Lyst’s Luxury Fashion Rankings

A Lesson in Accessible Luxury World Building

Coach has scored a coup d’etat by coming in at number #3 on the industry’s most-watched brand-ranking list.?

The Lyst Index just released its report on the second quarter of 2024, and according to the platform the best-performing products within the luxury fashion industry saw Coach’s iconic Tabby bag come in at number 3 in its ranking of the Top 10 products for the quarter.

“Mixing heritage appeal with refreshed designs, the brand's ability to blend accessible luxury with on-trend aesthetics has resulted in a 27% increase in searches this quarter, driven by demand for its Tabby bag, this quarter’s third hottest product.” The Lyst Index, Q2, 2024

The inclusion - which no one had on their fashion bingo card for 2024 - could be partly due to the astronomical price increases at luxury houses such as Chanel and Hermès, even in the face of a cost-of-living crisis and economic uncertainty. Which has led to an unending search for designer dupes from the likes of AliExpress, Temu, and DHGate, by those being fed a lifestyle that is wholly unattainable in today’s climate. However, while headlines have continuously focussed on the top and bottom ends of the market, what has often been overlooked is the middle market, which caters to a customer still seeking good quality products with the recognition of a luxury brand name, at an accessible price point - the near-impossible to achieve trifecta.?

This, however is a corner of the market that Coach have mastered. After a remarkable brand turnaround they have changed the perception of what they stand for, transitioning into a contemporary luxury go-to, which reflects the evolution of American style codes (preppy, grungy, sporty), and also understands and caters to its customers lifestyle needs. It is no more trying to be the next Ralph Lauren, nor compete with the likes of Jacquemus, and in running their own race Coach is gaining new fans, especially via mediums like social media where its TikTok account has close to 1M followers, with the “Coach Tabby” search term boasting over 46.4M posts.

A quick review of their e-commerce site demonstrates a comprehensive offering with a considered price architecture, and a point-of-difference within each style range, and an indication of where their successful strategy comes into play. When opting for up-cycled ‘made-with-waste’ products, there is the Coachtopia project which faces into the Gen Z customer. Then there is the Gen X friendly Willow Shoulder Bag embossed with faux croc. But, it’s the Tabby bag, which the brand reveals is a customer favourite, that has captured hearts and market share. Coming in multiple sizes (it’s ultra-mini version allows for an easy add-on purchase for customers who want to play into the maximalist ‘Bag Charm’ trend), quilted and faux fur finishes, crochet and canvas, as well as a backpack iteration.

In contrast to Coach Owner Tapestry Inc’s most recent positive sales result, the wider luxury industry - in contrast - appears to be in freefall. In the last few weeks we’ve had Gucci reporting a fall in sales of 20%, while the LVMH group saw its revenues slip with a dip of 1% in the second quarter of the year, and a more significant drop of 14% in Asia according to the Business of Fashion. Hermès, Zegna, and Moncler are 3 of the luxury outliers who reported positive growth in sales or exceeded their forecasts. And it would seem that Coach is a part of that group of outliers. It’s second quarter revenue came in at $1.2 billion, up 3% YOY, beating company expectations according to Vogue Business. Quietly building their brand on the cultural influence and digital savviness of Gen Z, while never forgetting to cater to their core customer who has remained loyal to the brand which would have been their first luxury purchase. The latter being the older Millennials who saved up to splurge on a logo-heavy tote in the early 2000s to mimic the lifestyles of the, then new crop of young celebrities - Paris Hilton, Mischa Barton, Lindsey Lohan, and Kim Kardashian - whose every move was captured by the blogs in the pre-social media era.

Perfectly sized, utilitarian in nature (in that it will fit more than a Rhode lip balm), versatile enough to be dressed up or down (depending on the finish you opt for), and at an affordable entry price point, Coach’s Tabby is one of the most fashionable bags on the market, in the fact that it is inclusive i.e. designed for it’s people. With prices ranging from ￡250 for a signature canvas wristlet to a Lil Nas X collaboration in shearling at ￡495, its quilted Tabby shoulder bag also satisfies the desires of those who see status in higher price points, yet don’t want to tip into the world of the ￡2000 handbag market, topping out the Tabby bag price architecture at ￡725 according to the brands e-commerce site.

Acknowledging the ways in which younger consumers discover brands - via multiple platforms, peer-to-peer recommendations, UGC on TikTok and Instagram - Coach announced last Fall that they would be selling (with a small trial at first) on Amazon. A smart move, as comparable luxury marketplaces that would have been the more obvious choice as wholesale partners are experiencing their own season of volatility. FarFetch has been acquired by Coupang and Matchesfashion is in the process of closing after being placed into administration by its owner the Frasers Group. As Tapestry Inc. CEO Joanne Crevoiserat told WWD:

“Amazon is important…We know younger consumers search and discover brands on that platform, and we wanted to put our best foot forward there”

And Coach is in good company, being present in the spaces where their customers are searching for their next purchases, the accessible luxury brand joins the likes of Altuzarra, Zimmermann (pre-loved), Roksanda (pre-loved), Elie Saab and Giuseppe Zanotti who also sell on the platform as part of their ‘Luxury Stores’ vertical.

Coach, rather than playing in the popularity olympics, is focussed on building out an engaged community of customers. Going beyond the tent-pole event of the semi-annual fashion show - which is a key marketing moment, but not the be-all and end-all of their multi-pronged approach - the brand is constantly a part of the fashion conversation via immersive pop-ups (from ice-cream vans to subway train replicas and inflatable playgrounds), its inter-generational range of ambassadors (Jennifer Lopez, Lil Nas X, Normani, Jayson Tatum, Wu JinYan), events that celebrate its community (London Boiler Room collaboration for the #Couragetobereal campaign), an ongoing presence at the Met Gala, and its dedication to immersing itself in virtual worlds.

Whereas many luxury brands have rolled back their experimentation with the Metaverse and transitioned the roles of (or cut) their Chief Digital Officers, Coach has firmly planted its flag into land that takes no physical form. Participating in the first and second outings of Decentralands ‘Metaverse Fashion Week’ the brand invested heavily into its UX design, and as a result created one of the most memorable and engaging spaces during the event. A virtual world where users could enter a giant Tabby to complete a quest with a prize of winning an AR try-on of the Tabby bag via a collaboration with Zero10. It is also building out into the world of gaming with Roblox by launching its spring 2024 collection (with Zepeto) with digital wearables. “Coach’s Tabby bag was much more dominant in these games than in other games they researched, and that’s how they landed on Roblox and Zepeto” according to WWD. Then there is its latest virtual ambassador Imma, a ‘Virtual girl in Japan’ (according to the avatar’s Instagram account) who is leading their #Couragetobereal campaign allowing real-world customers the opportunity to explore digital worlds and “unlock self-expression”. Coach’s continued immersion into virtual and gaming spaces demonstrates the brands foresight into where its next cohort of customer is likely to show up and discover its brand universe. Which if executed in the right way will transfer into real-world product sales.

Coach coming in at number 3 on the latest Lyst Index should have luxury brands asking themselves if they are truly providing what their customer wants. Far from being over-exposed, Coach’s backing of the Tabby bag as its ‘Hero’ product has allowed them to harness it as a visual tool to draw in customers across an array of immersive experiences, activations, and an innate ability to remain aligned with what is trending. From Y2K silhouettes to denim fabrics, pillow soft textures, glossy metallic finishes, and the uptrending boho aesthetic. Coach has also managed to remain attainable in the way it has? held its appeal for younger generations exploring entry-points into the world of luxury fashion.?

This ranking also signals that a high price tag isn’t always necessary for a bag to gain ‘It’ status. The Tabby bag is a rare success story at a time when the industry is scrambling to shore up sales by predicting what the consumer wants, which is resulting in a flattening of creativity a failure to loosen the chains on those responsible for the direction of said creativity, or tapping into the fast-moving zeitgeist with often mixed - if not cringe-worthy - results. In doubling down on what makes Coach, well Coach, and not chasing after an elusive single-digit percentage of society, the American brand is redefining the future of accessible luxury, driving demand for its products through the concept of ‘Everyday Desirability’.?

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