Coach CEO Todd Kahn: ‘We can win with the Chinese consumer because of American design’
Good morning. Asia editor Nick Gordon is here, replacing Diane Brady.
Executive Coach Todd Kahn has a lot to be happy about. The brand is thriving on a wave of demand fueled by social media, as Gen Z shoppers flock to products like the popular Tabby bag. The coach is the most successful department of the parent company texture (No. 534 on the Fortune 1000 list), reported revenue of $5.6 billion in its most recent fiscal year (ending June 28), compared with $7 billion for the broader company. Shares are up more than 75% for 2025 so far.
Kahn has led Coach since 2020, when he took on the role of interim CEO and brand president — an appointment that became official a year later. He joined Tapestry in 2008 as General Counsel and Secretary, having previously held positions in the apparel and fashion industry.
I sat down with Kahn at the new Coach Café on Singapore’s Sentosa Island earlier this month. Similar to how Ralph Lauren is used Ralph’s Coffee as an entry point For selfie-hungry Gen Z consumers, Coach is piloting a space brilliantly designed for young Singaporeans. Over a cup of spicy crab soft serve ice cream, we talked about tariffs, selling American brands to Chinese consumers, and how social media is building the next generation of Coach fans.
Regarding tariff escalation. Kahn and I met a few days after US President Donald Trump threatened to impose new 100% tariffs on China. (Trump has since softened his tone.) Coach does not manufacture in China, however, Kahn noted, “Business in general does better when there is more certainty. Lack of certainty makes it really difficult to plan, invest, and do things.” Kahn is optimistic that Coach’s focus on fewer, more affordable and consistent products puts it in a better place to manage increases in costs and prices than its competitors. “I’m much happier being in the $300 to $600 range than if I were in the $3,000 range right now and having to deal with tariffs.”
On sale in China. Tapestry grew its revenue in Greater China by 5% to $1.1 billion in its latest fiscal year, even as other foreign brands struggle to fend off more affordable local brands. “A great bag is a great all-around bag,” Kahn said, explaining that Coach’s brand positioning “aligns well with the young Chinese consumer.” He pointed out that Coach seeks to expand and deepen its research, as it combines big data from millions of its customers with “ethnographic work” that tracks consumers to their homes and stores. “This administration must appreciate the fact that we can win with the Chinese consumer because of American design. That combination is very powerful,” Kahn said.
When communicating with Gen-Z. Coach bags have been a hit on social media, which Khan attributes to building a “holistic story” around the brand’s products and retail experience. “If you’re just (focusing) on the product, but the environment isn’t conducive to Generation Z, you won’t be able to capture them,” he said. “Fashion has always looked to the younger generation for inspiration.”
Case in point: As we wrap up our conversation, Khan points to two young shoppers taking a selfie in front of a product display, spicy crab ice cream in hand.
If you want to hear more insights about design and business, be sure to check out Fortune Design brainstormingscheduled to be held in Macau on December 2. We’ve previously featured famous designers like industrial designer Tom Dixon, former Ford chief designer Anthony Lu, and Gensler co-CEO Elizabeth Brink. Stay tuned for more news about this event in the coming months.
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Contact the CEO daily via Diane Brady at diane.brady@fortune.com
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