Gap is entering the accessories market. The total size of this segment reaches fifteen billion dollars. The brand is launching a new collection of stylish bags. The products were designed by renowned designer Reed Krakoff. He previously helped build the global brand Coach. Prices for the new items start at thirty dollars. The maximum price for base models is one hundred and forty-eight dollars. A limited-edition patchwork model costs four hundred and ninety-eight dollars.
The new bags will go on sale on September 8. The new items will be available in physical stores and online. The designer noted the complexity of the engineering challenge. Early denim prototypes quickly lost their shape. The company developed a special non-stretch denim. The fabric resembles the rigid materials of classic jeans. The flagship Five-Pocket Tote model reproduces clothing details. The bag features belt loops and buttons. The Hoodie Tote model is made from soft fleece. The item has a neoprene lining and a drawstring. The designer told Vogue magazine about the possibility of machine washing.
CEO Richard Dickson outlined the strategic context. He spoke on the quarterly earnings call. The executive called accessories an important accelerator of overall growth. Dickson gave an interview to The Wall Street Journal. Accessories are not a new business for the company. However, the brand has never pursued them convincingly. Reed Krakoff received an important position last year. He became the company's Executive Creative Director of Accessories. The designer also has experience working at Tiffany. Management praised the embodiment of the Gap brand philosophy.
The collection launch puts pressure on direct competitors. Tapestry is the most vulnerable publicly traded player. The Coach brand generates a large portion of Tapestry's revenue. Any market share gained will come at Gap's benefit. Tapestry shares were declining ahead of market open. The stock continued to fall over the preceding thirty days. The dynamic cannot be explained by a general negative market trend. S&P 500 futures were losing less ground. The new collection is designed to close a strategic gap for the company. The collection turned out to be truly distinctive and unique.