They say that imitation is the sincerest form of flattery, and that’s exactly the mindset behind Kate Spade‘s latest business plan. In an effort to increase retail sales and expand into a variety of lifestyle categories including fragrances, jewelry, watches and sunglasses, Kate Spade is determined to become more like Ralph Lauren.
“Ralph Lauren is our business analog,” Craig Leavitt, the company’s Chief Executive Officer, told Bloomberg. “We’re very confident in what we have set out to accomplish.”
Even though Kate Spade has transformed from niche to mainstream throughout the last two decades, it’s still only one-eighth the size of industry giant, Ralph Lauren. But Leavitt has a plan: he plans to expand the company’s international sales, particularly in Asia, throughout the next few years. In an attempt to increase sales in the US, he plans to open more stores and increase the brand’s online presence, which is currently only responsible for 20 percent of total revenue. If all goes as plan, he believes that retail sales will reach $2 billion by the end of 2016.
“The DNA resonates with customers around the world,” he told the publication. “It’s about encouraging the customer to lead a more interesting life. Everyone strives to spend more time in museums and have adventures like seeing a new part of the world or going to a flea market and finding something unique for your home. The brand is optimistic, happy.”
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