What factors are causing the increased return rate for Tapestry's Kate Spade wallets in the past month?

Introduction

The increased return rate for Kate Spade wallets at Tapestry over the past month is a concerning trend that requires immediate attention. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal factor. Has this increase in returns coincided with any particular holiday or shopping event?

Why it matters: Seasonal trends can significantly impact consumer behavior and product expectations. Expected answer: There was a slight uptick during the holiday season, but the trend has continued beyond that period. Impact on approach: If seasonal, we'd focus on holiday-specific strategies; if not, we'd look at more systemic issues.

• Considering product quality, I'm wondering if there have been any recent changes in manufacturing processes or materials used. Have there been any alterations to the wallet production in the last few months?

Why it matters: Changes in production can directly affect product quality and customer satisfaction. Expected answer: No significant changes have been reported in the manufacturing process. Impact on approach: If changes occurred, we'd focus on quality control; if not, we'd explore other factors like marketing or customer expectations.

• Thinking about customer demographics, has there been a shift in the target audience or marketing strategy for Kate Spade wallets recently?

Why it matters: Changes in target audience can lead to misalignment between product features and customer expectations. Expected answer: There has been a push to attract younger consumers through social media campaigns. Impact on approach: If confirmed, we'd analyze the fit between product design and new target audience preferences.

• Considering the return process, has there been any change in the return policy or procedure in the past few months?

Why it matters: Changes in return policies can significantly impact return rates and customer behavior. Expected answer: The return window was extended from 30 to 60 days three months ago. Impact on approach: If confirmed, we'd analyze how this policy change might be affecting customer behavior and return rates.