---
title: 'Everyone says Gen Z isn''t spending. Coach disagrees.'
source: 'https://youtube.com/watch?v=I0PfJV9Y1Bw'
video_id: 'I0PfJV9Y1Bw'
date: 2026-08-01
duration_sec: 660
---

# Everyone says Gen Z isn't spending. Coach disagrees.

> Source: [Everyone says Gen Z isn't spending. Coach disagrees.](https://youtube.com/watch?v=I0PfJV9Y1Bw)

## Summary

In this interview from Cannes, Tapestry's CEO explains why Coach is defying the narrative that Gen Z is not spending. She outlines a deliberate strategy focused on first-time luxury buyers, the power of heritage, and AI-driven retail experiences — backed by numbers like 25 million new 18-year-old consumers per year and double-digit growth in average unit retail.

### Key Points

- **Coach's momentum driven by team and growth engine** [00:17] — The CEO credits an intentional growth engine and a culture of creativity for Coach's momentum, enabling the brand to stay focused and relevant.
- **Target market: first luxury bag buyer** [00:45] — Coach defined its target as the point-of-market-entry young consumer buying a luxury handbag for the first time, aiming to be their first luxury bag purchase.
- **JP Morgan stat: 25 million turn 18** [01:30] — Brian Sozzi cites a JP Morgan statistic that 25 million people turn 18, a huge driver for Coach's focus on young consumers.
- **25 million women turning 18 each year** [02:27] — In the markets Coach serves, 25 million women turn 18 this year and every year for the next 10 years, representing a massive opportunity for first-time buyers.
- **Gen Z gives stores 60 seconds** [03:21] — A Gen Z consumer gives a store about 60 seconds to determine whether they want to be there, so Coach invests in making the experience inspiring and accessible.
- **AI training tools for associates** [04:31] — Coach uses AI training tools that give associates real-time tips on how to engage Gen Z consumers, offering a less intimidating way to practice techniques.
- **Gen Z product engagement vehicles** [04:59] — The Brooklyn bag and Terry bag are strong Gen Z engagement vehicles, with innovation in product, store experience, and marketing working together.
- **Heritage: baseball glove inspiration** [05:44] — Coach's glove-tanned leather was inspired by a baseball glove; the brand is built on genuine leather crafted to last, with heritage used to stay relevant today.
- **Double-digit AUR growth for almost five years** [08:36] — Coach has seen double-digit growth in average unit retail for almost five years, with young consumers entering the brand at higher-than-average price points.
- **Higher retention among young consumers** [09:02] — When young consumers have a great first experience, they return with higher frequency; retention rates for this cohort are higher than any other age group.
- **Over 60% of Gen Z gift without occasion** [09:58] — More than 60% of Gen Z consumers give gifts just to brighten someone's day, showing a shift toward living in the moment rather than waiting for traditional gifting moments.

### Conclusion

Coach's growth is not accidental: a precise focus on the first-luxury-bag buyer, combined with heritage storytelling, AI-enabled training, and a strong value proposition, is converting young consumers into higher-spending, loyal customers.

## Transcript

interviews from Cannes. The Tapestry CEO sat down with executive editor Brian Sozzi to discuss the state of the luxury retail market. >> How do you explain all the the momentum behind the Coach brand?
start with our team. We have a great team and we've built our growth engine by design and it really is fueling a culture of creativity. So bringing it
back to why we're here at Cannes, um you know, we've defined our target market. It's a massive TAM, right? We speak to a lot of consumers and we've really gotten focused on this point of market entry young consumer who's buying
a luxury handbag perhaps for the first time. We want to earn the right to be that customer's first luxury bag purchase. And as we get really focused, our team is insatiably curious about how to do that, how to be relevant for that
target customer, bringing all of our brand building capabilities that we've intentionally built over the last 7 years together with the creativity that that customer is craving. And so when we come to a place like this, I think it
explains that real insatiable curiosity that our teams have to learn what's new, to understand culture to deeper level and connect the consumer to our brands winning the day for Coach. >> I I came across this stat and it's
while, maybe because I'm just getting old and it was from JP Morgan and I think they said 25 million people turn 18 and I'm like, that is a huge driver of your
it's it's their first handbag that they ever bought on their own, right? authentic to who we are. If you think about and you know, you and I have been in this business for a long time, is we do work with consumers, we hear
frequently about Coach or Kate Spade and just the fond memories consumers have. It was my first luxury bag purchase. I remember how it made me feel. So, those two moments of inspiration for us are this is authentic to who we are. We are
a brand that speaks to actually 2 billion people around the world can afford to buy one of our handbags. And so, with that large an audience, we had so, with that large an audience, we had to get focused became focused on this
first luxury bag buyer because it is so authentic to who we are and the great news is that 25 million women in the markets where we serve today will turn 18 this year and every year for the next
10 years. So, that provides a tremendous opportunity, but that's all that is is opportunity. Then we have to do the work to understand culture, understand the customer, and take those insights and and bring them forward with great
and bring them forward with great product, great brand experiences, and together in service of the brand and the emotional connection with the consumer. into your store, look, you're 18 years old. You don't have a lot of You don't
probably buying a 8-900 bag. When they walk into your store now, in that Coach store, what are they buying as their first bag? >> Well, an interesting insight, Brian, a Gen Z consumer gives us about 60 seconds
to determine whether they want to be there. there. >> 60 seconds is all we have to have that customer feel like it's a brand for them, that they're in a place where they
can feel inspired, they can be engaged. So, we spend a lot of time understanding what's important to this customer, not just, you know, what kind of handbag and what is the trend style, but how they want to be treated, how we have to
it accessible so they feel that they can be they can touch it and explore it and try it on. We do actually a lot of work on training our associates on how to engage a Gen Z consumer who walks into our store because it doesn't look the
>> do you engage them? Hey, hey, hey, buddy. I did [laughter] this panel. >> It's It's It's knowing that, right? It's knowing how to engage them, knowing that it's not important to just be in their face
every minute. It's It's knowing how to give them help because they don't really want help, but they want help. And understanding that nuance and actually we have AI training tools that help our associates not only train to understand
what to do, but then practice how to do it. And these AI training tools give tips in real time back to our associates, which is a less intimidating way to train on your techniques and in the ways that we engage and approach our
customers. So, I would say that the takeaway is that we understand we take it very seriously to understand what's important to our consumers. And then we invest. We invest behind not only the products that we're delivering. So, you
the Brooklyn bag or the Terry bag, which are, you know, tremendous Gen Z engagement vehicles. They love these bags and the innovation we're bringing there is is terrific. But it also matters the experience that we give them
when they come into the store and the marketing and how they see us where they as well. >> I earlier we got a conversation with uh and he was telling me a story he was trying to tell around his legacy brand
to a store I believe in the late '70s that used to sell music. And I was thinking of you all um amazing heritage uh amazing story to tell there. How is that How is channeling your heritage helped revive this business?
>> What is so critically important is that we're not just a brand for today. We are a brand with heritage and and to your point, we go back to that inspiration of the baseball glove. Our glove tanned leather was inspired by the glove the
>> I got to tell my boss George, he's over there. He's a big baseball fan. >> Yeah, because you know, that is if you you probably still have your childhood >> Well, you you are you are still young. So, you probably still use it, too.
>> But in our house, they may be older, but that leather the patina gets better over time and that inspired the Coach brand from its very beginning. It's it's this genuine crafted to last product that was inspired by a baseball
glove and has built on this credible credibility for being a house of leather over many generations. And so, it is important not to let go of being genuine and and the courage to be real this bringing that back today for a modern
bringing that back today for a modern consumer is about allowing the consumer to build confidence through self-expression with our product and our brand. Genuine leather crafted to last. That is something that has been
consistent over time and will remain consistent into the future. And the reason we're here today is to understand how to take that territory and make it relevant for a young consumer and bring the right product to to market, bring
the right experiences in terms of our store experience or the AI gift concierge that we have at Kate Spade, right? What is that experience that is relevant to a modern consumer but brings the brand heritage forward in a very
important. >> Marriott CEO told me July 4th holiday bookings are strong. What's the state of that consumer that strong, somewhere in between? >> There's a lot written about, you know,
particularly for young consumers, our target consumer group, yet quarter after quarter we're acquiring millions of new consumers every quarter. innovation and the relevance that they're looking for.
selling. >> I think they're prioritizing. And you know, frankly, in a in a world where the consumer may feel more challenged, and again, lot written about that, I love our value proposition in that market.
You know, we are well-positioned to compete and win in any market given the really the strength of our value proposition. But that isn't just a price point. I think it is really important to say that what the consumer's responding
innovation we're delivering. And that innovation happens in product. You know, we've talked about the Tabby bag and the Brooklyn bag and the Terry bag or the Duo at Kate Spade. We're seeing growth in AUR, double-digit growth in AUR.
>> in a row. >> Uh more than that, almost five years in a row now at the Coach brands. So we, you know, we have consistently seen this young customer engage our brand for the first time
and they're coming in at higher than average AUR. So a young consumer who's shopping at a price point that's higher than our average consumer. And now the the beautiful thing is when we deliver a great first experience, we see them
coming back with higher frequency. So retention rates of our young consumer are actually higher than any other age cohort. So we're starting to see the compounding benefits of the work that we're doing. And you know, the the
reason we're here today is because we're not complacent with those results. It makes us even more curious about what's happening in culture so that we can >> So you're planning for a big holiday season?
season. >> every day it's like one day closer to you You there are so many wonderful opportunities to um um to drive our business. Holiday is
showcase our brands and create more emotional connections with our brands to our target consumers. But, we're seeing that in the everyday. Actually, uh over 60% of Gen Z consumers like to give gifts just to brighten
someone's day. So, we're actually seeing the younger consumer not need a reason >> [laughter] >> Please, please. I'm I'm all in. >> You know, and and I think it's it's a signal that that customer isn't just
waiting for the moment in the year where they're supposed to gift. They're doing it because they feel that they want to drive brighten someone's day, drive that emotional connection around to their friend group, and live more in the
moment. This is a consumer group that we often hear is struggling with, you know, affordability issues, but one that is maybe putting off life moments. They're tomorrow or maybe getting married, but they do want to live for today and
really make the best of what they have today. And the value proposition that we deliver, which includes the incredible innovation and creativity that we're delivering, in addition to the trend right silhouette and the price points
that we're delivering, make it a compelling option for our consumers.