{"id":3621,"date":"2022-05-03T17:11:28","date_gmt":"2022-05-03T09:11:28","guid":{"rendered":"https:\/\/www.cherry-insights.com\/media\/?p=3621"},"modified":"2023-05-23T16:13:41","modified_gmt":"2023-05-23T08:13:41","slug":"will-an-elevated-ralph-lauren-resonate-in-china","status":"publish","type":"post","link":"https:\/\/cherry-insights.com\/media\/?p=3621","title":{"rendered":"Will an Elevated Ralph Lauren Resonate in China?"},"content":{"rendered":"\n
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After years of falling revenue, Ralph Lauren is doubling down on its luxury positioning. But is it too late to change its perception in China? Photo: Ralph Lauren<\/span><\/p>\n\n\n\n

Ralph Lauren\u2019s comeback was nothing short of classy. On March 22, the American lifestyle leader transformed the Museum of Modern Art into a cozy replica of its founder\u2019s living room for its first live runway since the pandemic, featuring pieces from both its Fall 2022 women\u2019s collection and men\u2019s Purple Label. With form-fitting evening gowns, structured blazers, and RL-emblazoned sweaters, the 61-look show read like a love letter to New York City.<\/p>\n\n\n\n

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Playing with black and white, Ralph Lauren\u2019s Fall\/Winter 2022 collection celebrates timeless luxury style. Photo: Ralph Lauren<\/p>\n\n\n\n

Founded in 1967, Ralph Lauren epitomizes American fashion \u2014 striking a balance between aspirational and approachable. Although the company houses various labels, none is more recognizable than Polo Ralph Lauren: think polo shirts, embroidered ponies, and East Coast prep. However, over the years, its high-end image has slipped as these popped collars became ubiquitous on the discount racks of Macy\u2019s and TJ Maxx and the number of sub brands grew <\/a>without proper distinction. <\/p>\n\n\n\n

Brand elevation is just one of its many challenges. With fiscal 2021 revenue plunging to $4.4 billion amid COVID-19 shutdowns, Ralph Lauren\u2019s current figures are a far cry from the $7 billion-plus<\/a> made in the mid-2010s. On top of this, the fashion giant is still playing catch up in China where it entered much later than other brands.<\/p>\n\n\n\n

Now, will doubling down on its luxury positioning help Ralph Lauren accelerate momentum in China and around the world? Or has the polo shirt maker already peaked?<\/p>\n\n\n\n

Turning the page<\/strong><\/p>\n\n\n\n

Faced with a crisis, CEO Patrice Louvet unveiled the \u201cNext Great Chapter\u201d<\/a> in 2018 to revitalize the company. The plan was to win over a new generation of consumers, drive regional expansion, energize core products, lead with digital, and operate with discipline to \u201creturn Ralph Lauren to sustainable long-term growth.\u201d <\/p>\n\n\n\n

Put into practice, this largely meant that Ralph Lauren would distance itself from the off-price market. That\u2019s why, back in 2017, the fashion house started pulling back products from underperforming department stores at a rate as high as 25 percent<\/a> while shrinking its inventory to avoid excess stock. At the same time, the New York company consolidated its brand portfolio by transitioning the mid-range Chaps brand<\/a> to a licensing model, further reducing exposure to the US wholesale channel.<\/p>\n\n\n\n

\u201cWherever we show up we want to make sure the brand is portrayed in a way that is consistent with the image,\u201d said Louvet<\/a> during a fireside chat in January. In that spirit, Ralph Lauren also doubled down on its own stores \u2014 both in quality and quantity. Among the 80 locations<\/a> opened last year, new concept stores in Beijing and Shanghai capture this emphasis on elevated experiences. In addition to a smart retail environment<\/a> powered by Tencent, the Ralph\u2019s Coffee and WeChat Mini Program features like \u201cMy Fashion Consultant\u201d and \u201cRL Reading Club\u201d work to enhance customer engagement. <\/p>\n\n\n\n

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Ralph Lauren\u2019s store on West Nanjing Road in Shanghai features a Ralph\u2019s Coffee for an added hospitality component. Photo: Ralph Lauren\u2019s Weibo<\/p>\n\n\n\n

China challenges<\/strong><\/p>\n\n\n\n

But will these tactics bode well in China? First, it is important to note the context: Ralph Lauren entered the Chinese market in 2011, well behind other luxury brands like Louis Vuitton (1992) and Gucci (1997). As such, the market penetration is low \u2014 although Louvet views this<\/a> as \u201cgood news, because that means there\u2019s a significant upside.\u201d <\/p>\n\n\n\n

To close this gap, the American icon has quickly grown its footprint, especially in Shenzhen, Chengdu, Shanghai, and Beijing, via brick-and-mortar stores and online channels like Tmall, JD, and WeChat. In fact, mainland sales jumped 22 percent in 2021 and its brands ranked No. 2 on both Tmall\u2019s Luxury Pavilion and JD\u2019s luxury platform during Singles\u2019 Day activations, according to CFO Jane Nielsen. Ralph Lauren also teamed up with actor Xiao Zhan to launch its first major fragrance, selling 40,000 units of Ralph\u2019s Club fragrance in a 6-hour period in December 2021.<\/p>\n\n\n\n

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Ralph Lauren Fragrances welcomed Chinese actor Xiao Zhan to Ralph\u2019s Club as its new brand spokesperson in December 2021. Photo: Ralph Lauren Fragrances\u2019 Weibo<\/p>\n\n\n\n

That said, strong sales do not necessarily equate to luxury status. As Hazel Diliziya, a cultural and marketing researcher at Cherry Blossoms Intercultural Branding<\/a>, told Jing Daily<\/em>, \u201cRalph Lauren may not be seen as a luxury brand, but as a premium brand, for a significant number of Chinese consumers\u2019 impression of the brand is limited to its relatively inexpensive polo shirts, and only a few know its high-end branches.\u201d Additionally, the group \u201cis behind the times for Chinese people since sports like polo or golf are not exclusive to the upper class anymore.\u201d<\/p>\n\n\n\n

There are other issues that come with Ralph Lauren\u2019s delayed start. \u201cWhile their official market entry may have only taken place relatively recently, their iconic polo shirts have been a mainstay of China\u2019s once ubiquitous fake fashion markets for the last 20 years,\u201d said Adam Knight, cofounder of cross-cultural agency TONG<\/a>. \u201cReshaping perceptions of the brand is an uphill struggle, requiring significant investment and a savvy consumer-centric strategy.\u201d <\/p>\n\n\n\n

RECOMMENDED READING<\/small>Ralph Lauren Soars As China Leads Asian Growth<\/a>By Kevin Rozario<\/p>\n\n\n\n

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Potential opportunities <\/strong><\/p>\n\n\n\n

According to Louvet<\/a>, \u201cHeritage sometimes isn\u2019t enough.\u201d And while that\u2019s true, Ralph Lauren\u2019s American DNA and vintage aesthetic are partly how it can differentiate itself in China. One opportunity for the company, Diliziya noted, is to lean into the vintage trend, which has become popular among young Chinese consumers. Another is to leverage the rise of gender-neutral fashion: \u201cRecognized as simple, comfortable and all-purpose fashion items, many of Ralph Lauren\u2019s gender-neutral style shirts and suits have become Chinese female consumers\u2019 new favorite,\u201d she added.<\/p>\n\n\n\n

More broadly, Knight believes that one area Ralph Lauren should focus on is brand collaboration. \u201cRalph Lauren has one of the highest levels of logo recognition globally,\u201d he explained. Partnering with a domestic designer would leverage \u201cexisting audiences and consumer trends as a short-cut to growth.\u201d Already, Polo by Ralph Lauren has teamed up with Edison Chen<\/a>, creative director of CLOT, to bring Silk Royale prints and frog button closures to its well-known silhouettes.<\/p>\n\n\n\n

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Polo by Ralph Lauren x CLOT draws style inspiration from Edison Chen\u2019s Hong Kong heritage. Photo: Ralph Lauren\u2019s Weibo<\/p>\n\n\n\n

Ultimately, whether or not it manages to attain its desired \u201cluxury\u201d recognition, Ralph Lauren is on the rise. The New York corporation\u2019s adjusted gross profit margin expanded 60 basis points in its recent third quarter to 66 percent, driven by improved pricing and a better product mix. Now, it expects constant currency revenue growth of up to 41 percent <\/a>for fiscal 2022 to $6.2 billion. It\u2019s not the $7 billion of its heyday \u2014 and certainly nowhere near the $71 billion <\/a>LVMH made in fiscal 2021 \u2014 but it\u2019s a step in the right direction.<\/p>\n\n\n\n

And Ralph Lauren has no intention of slowing down.\u00a0\u201cThe brand elevation never stops,\u201d Louvet told\u00a0Business of Fashion<\/a>. \u201cIn 20 years, we\u2019ll still be talking about brand elevation.\u201d<\/p>\n\n\n\n

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via: https:\/\/jingdaily.com\/ralph-lauren-brand-elevation-china\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

After years of falling revenue, Ralph Lauren is doubling down on its luxury positioning. But is it too late to change its perception in China? Photo: Ralph Lauren Ralph Lauren\u2019s comeback was nothing short of classy. On March 22, the American lifestyle leader transformed the Museum of Modern Art into a cozy replica of its founder\u2019s living room for its first live runway since the pandemic, featuring pieces from both its Fall 2022 women\u2019s collection and men\u2019s Purple Label. With form-fitting evening gowns, structured blazers, and RL-emblazoned sweaters, the 61-look show read like a love letter to New York City.\u2026<\/p>\n","protected":false},"author":8,"featured_media":3626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[56,49,55,50,52,53,51,54],"class_list":["post-3621","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quotes","tag-brand-elevation","tag-chaps","tag-counterfeit","tag-gender-neutral","tag-krane-rl","tag-patrice-louvet","tag-polo-shirt","tag-ralph-lauren"],"blocksy_meta":"","_links":{"self":[{"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/posts\/3621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3621"}],"version-history":[{"count":2,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/posts\/3621\/revisions"}],"predecessor-version":[{"id":3628,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/posts\/3621\/revisions\/3628"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=\/wp\/v2\/media\/3626"}],"wp:attachment":[{"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cherry-insights.com\/media\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}