Yang Lu’s initial interest in technology began when she emigrated to the U.S. from China at the age of 12 and didn’t speak a single word of English. “Technology was a big equalizer for me,” she says. “When I walked into a computer science and programming course in high school, nobody knew the language.” It gave Lu an opportunity to learn something new along with her peers.
She joined luxury giant Tapestry eight years ago, partly to steer a technology transformation the company was undergoing as a result of a string of acquisitions, including the 2015 purchase of Stuart Weitzman, and that of Kate Spade two years later. Tapestry worked quickly to consolidate and harmonize all technology, across all brands, and for nearly all geographies, excluding China.
That means nearly all software, point-of-sale systems at retail stores, inventory management, supply chain, and all other technologies are synonymous across the entire business.
Lu, who ascended to the role of CIO in September, says the advantage of this structure is that Tapestry is able to test out technology solutions for one brand and if they like it, roll it out to the rest of the portfolio. And the company is okay with occasional failures. “My mantra is iteration is the new perfection,” says Lu.
In her new role as Tapestry CIO, Lu was ready to apply that same playbook to Capri—owner of the Versace and Michael Kors brands—which Tapestry was set to acquire for $8.5 billion. But Tapestry officially called off the deal this month due to the FTC's efforts to block it on anti-competitive grounds.
“We’ve always had multiple paths and how we can enable our brands to grow,” says Lu, adding Tapestry is confident in its business and is “thrilled that the Street is just as confident.” Tapestry's shares rose 9% on Thursday after the deal died.
With the task of integrating with Capri now off the table, Lu can dedicate more time to innovative technologies, like artificial intelligence, which she says can boost employee productivity and improve the customer shopping experience.
One recent example is a new AI-enabled tool that generates more emotionally evocative descriptions for handbags and other accessories that goes beyond simplistic product dimensions. “We were able to quickly roll out for one brand, Coach, and then see that really draw up higher conversion and higher revenue per visit,” says Lu, who later applied the technology to the other two brands.
Tapestry is piloting an internal version of ChatGPT, a chatbot called Stitch, which pulls data from the company’s industry research, policies, and procedures to answer employee questions. The company is also beginning to use AI to monitor and correct coding errors, exploring a relationship with an AI image generator to create creative assets, and uses AI and machine learning for price elasticity, which allows a retailer to command the highest price possible for its goods without seeing a dip in demand.
Another tool is called “Tell Rexy,” named after the dinosaur emblem that frequently is featured on Coach’s bags, wallets, and keychains. Store associates can audio record feedback from shoppers—including thoughts on products or even if the holiday music playlist just isn’t hitting the right note—and generative AI summarized insights that are shared with the corporate office.
Tapestry encourages the company’s workforce, including IT, to frequently visit stores and talk to associates and customers. “Every technologist needs to think business first,” says Lu.
As for AI, cloud, and other technologies, Tapestry explores relationships with multiple vendors depending on business needs, including Amazon and Google. For AI, there are three paths Tapestry intends to pursue, according to Lu: build their own solutions, partner with vendors for Tapestry-specific tech, and buy off the shelf.
“It’s our job to stitch it together in a seamless way,” Lu says.
John Kell
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