Coach CEO Champions American Design in China Market Amid Tariff Uncertainty

Coach’s Strategic Positioning in China

Coach CEO Todd Kahn has expressed confidence in the brand’s ability to succeed with Chinese consumers, attributing this advantage to American design principles. According to Fortune‘s interview with Kahn, Coach’s parent company Tapestry saw Greater China revenue grow 5% to $1.1 billion in its last fiscal year, even as other foreign brands struggle against domestic competitors. “A great bag is a great bag everywhere,” Kahn stated, emphasizing that Coach’s brand positioning “aligns really well with the young Chinese consumer.”

Coach’s Strategic Positioning in China
Navigating Tariff Uncertainties
Gen-Z Connection Through Social Media
Financial Performance and Market Position
Broader Industry Context

Sources indicate that Coach employs extensive research methods combining big data from millions of customers with ethnographic studies that follow consumers into their homes and shops. Kahn reportedly told Fortune that “this administration should value the fact that we can win with a Chinese consumer because of American design. That combination is very powerful.”

Navigating Tariff Uncertainties

The interview occurred shortly after former President Donald Trump threatened new 100% tariffs against China, though analysts note he has since moderated his tone. While Coach doesn’t manufacture in China, Kahn acknowledged that “business generally does better when there’s more certainty. The lack of certainty makes it really hard to plan, to invest and do things.”

According to the report, Kahn expressed optimism about Coach’s positioning in the $300 to $600 price range compared to luxury competitors facing $3,000 price points. “I’m much happier about being in the $300 to $600 range than if I’m at $3,000 now having to deal with tariffs,” he stated during the Singapore interview.

Gen-Z Connection Through Social Media

Coach’s success reportedly stems from strong social media engagement and Gen-Z appeal, with products like the iconic Tabby bag driving demand. Kahn credits building a “holistic story” around products and retail experiences for this success. “If you’re just [focusing] on product, but the environment isn’t inviting for Gen-Z, you’re not going to capture them,” he told Fortune, adding that “fashion has always looked to the youngest generation for inspiration.”, according to additional coverage

The brand is testing new retail concepts like the Coach coffee shop in Singapore’s Sentosa Island, similar to Ralph Lauren’s Ralph’s Coffee strategy. During the interview, Kahn reportedly pointed out young shoppers taking selfies with products, illustrating the brand’s successful engagement with younger consumers., according to emerging trends

Financial Performance and Market Position

Coach has demonstrated strong financial performance, with shares up over 75% for 2025 so far, according to reports. As the most successful division of parent company Tapestry (ranked No. 534 on the Fortune 1000), Coach generated $5.6 billion in revenue in its most recent fiscal year ended June 28, compared to $7 billion for the broader company.

Kahn, who joined Tapestry in 2008 as general counsel and secretary before becoming interim CEO in 2020, has overseen this growth period. The brand’s affordable luxury positioning appears to be resonating globally despite economic uncertainties and tariff discussions.

Broader Industry Context

The report comes amid wider industry concerns about tariffs, with former Sears Canada CEO Mark Cohen warning in a separate Fortune interview that tariffs represent a “burden on every element in the supply chain.” Cohen suggested that CEOs aren’t speaking up about tariff concerns due to fears of “retaliation,” indicating that retailers won’t be able to avoid impacts on holiday goods.

Meanwhile, Coach’s approach to international markets and younger consumers demonstrates how brands are adapting to changing global dynamics and shopping behaviors, particularly through social media engagement and strategic price positioning.

References & Further Reading

This article draws from multiple authoritative sources. For more information, please consult:

This article aggregates information from publicly available sources. All trademarks and copyrights belong to their respective owners.

Note: Featured image is for illustrative purposes only and does not represent any specific product, service, or entity mentioned in this article.

Japan faces significant economic challenges if forced to replace Russian LNG supplies from the Sakhalin-2 project, according to government officials. Industry Minister Ryosei Akazawa warned that alternative procurement would cause electricity prices to surge. The comments come amid U.S. pressure to reduce energy purchases from Russia.

Energy Security Concerns

Japan’s liquefied natural gas supplies from Russia’s Sakhalin-2 project play an “extremely important role” in the nation’s energy security, according to reports from the industry ministry. Industry Minister Ryosei Akazawa stated that replacing these supplies would be costly and would likely cause higher electricity prices for Japanese consumers.