Kate Spade Swot Analysis

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Luxury fashion brands tended to target their customers demographically by their age, gender, income, and lifestyle. Kate Spade & Company used to target middle aged women, suburban moms; it was well-known for its minimalist, angular handbags. Later on, Kate Spade & Company shifted its demographic groups to have a target market of females, and ranged from 20 to 35 years of age. Though the company generally targeted a middle and upper-class audience, Spade had designed her brand to have an image of a college-educated, urban type of girl. Its customers wanted a lifestyle brand, with classic but clever designs. They wanted something that fit into their lifestyle, therefore they ranked that as a priority when considering to purchase a Kate Spade…show more content…
The company then proceeded to reach millennium customers by creating Kate Spade Saturday. It offered a more casual and affordable fashion for younger customers who were assumedly not ready for the sophisticated styles. Kate Spade & Company ended up closing Kate Spade Saturday in 2015 as customers thought it was missing the classic elements. Customers described their experience as not feeling right for them to buy casual clothes from Kate Spade Saturday. The younger customers, Saturday’s main target, perceived Kate Spade as a luxury brand rather than a casual brand. They went for Kate Spade products because of its chic characteristics, thus they did not want the casual look. Customers have always viewed Kate Spade a luxury brand. They found it hard to change their perception and considered the brand differently. Despite failing to capture millennial customers’ attention with the casual products, Kate Spade & Company caught on the new trends. Millennials prefered smaller bags with subtle logos. They preferred no labels and logos on their clothing, bags or accessories. The company did not shift completely to the new products but offered more of a variety with some adjustments. The company’s online business was also thriving as its target customers became increasingly online shoppers. The company was building its presence online and “Over 20% of sales come from ecommerce channels” (Loeb,

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