Coach just opened its first restaurant and a coffee shop in Jakarta, Indonesia.
Business of Fashion's Diana Pearl writes that the restaurant and coffee shop's decor bids homage to its NYC roots: "The restaurant—which has a replica of a New York City yellow cab hanging upside down from the ceiling—is a reinterpretation of a New York steakhouse, while the coffee shop sells slices of pizza and soft-serve ice cream in addition to coffee."
Both were designed by Coach's creative director, Stuart Vevers, and interior/exterior designer, William Sofield. They incorporated nods to the Coach brand throughout the spaces: "[combining] natural and industrial materials into refined architectural elements, paying homage to Coach's craftsmanship and New York heritage. Notable features include bronze mirror walls, stainless and blackened steel staircases, and tropical wall panel wood louvers, creating an intimate and memorable dining experience."
Why Indonesia, you may ask? Pearl cites Todd Kahn, Coach's CEO and president, stating that the country has a large and growing youth population: "About half are Millennials, Gen-Z or younger." Coach has also been growing its presence in Southeast Asia over the last few years with Coach Play Shophouse in Singapore.
These are just two shops in the brand's plan for hospitality expansion for the future.
This is not the first example of a luxury brand expanding into hospitality. Enny Bakers wrote about this in her LinkedIn Pulse piece, "The Seamless Transition: Luxury Fashion Brands Make an Entrance Into the Hospitality Industry." She said expansions "represent a natural evolution for luxury brands seeking to offer a comprehensive lifestyle experience to their discerning clientele." Recall my piece about Burberry Streets in LFW FW23? How about the example of J. Crew? Ralph Lauren?
Creating a brand story is a great way to sell a product because you're not just selling a product; you're selling a lifestyle. If you buy this skirt, you'll instantly be transported to the Hamptons on a yacht with your male model boyfriend. This can be done on socials and/or on the e-commerce website.
Even better is creating a 3-D, tangible flagship store. This will give your customers the chance to enter the brand's world. Think of Ralph Lauren's stores. When I worked at RL, the Chicago Mansion was the epitome of luxury. You felt like you were walking into Ralph's house with the dark wood, leather chairs, and equestrian vibe.
Best is creating a space for customers to connect with the brand. An article by Elle Education states, "Brand spaces can have different formats, either as spaces intended for mere enjoyment and relaxation, a flagship store where the commercial activity takes place or at its opposite pole, non-commercial spaces intended to connect with historical, narrative, artistic elements, or any other discipline close to the core values and the brand purpose."
Bakers emphasizes the importance of brand expansion, "The successful transition from fashion to hospitality reflects an understanding that luxury consumers seek more than just material goods; they crave an all-encompassing lifestyle that embodies the values and aesthetic of their preferred brands."
Brand expansion is not a new concept. The European's Dr. Florent Girardin points out, "In the luxury sector, brands have long-since leveraged their reputations to enter into new product categories – from perfumes and luxury accessories, to jewelry and designer eye-wear. However, the concept of global brands expanding into hospitality, is something that constitutes a modern trend." Girardin continues to explain that this expansion is significant as luxury brands look towards millennials and Gen Z - the next generation of luxury consumers. Older generations wanted items to display their status, while younger generations prefer experiences.
This is my favorite PR move. I love exploring brand differentiation and diving into its world. This creates a deep connection between the brand and its consumer, taking a brand from being 'just a place to shop' to part of the consumer's life and personality. From hotels to restaurants to pop-ups, there is plenty of room for creativity in bringing your brand to life.
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