Ralph Lauren has been a well-known name in the fashion industry for over five decades. However, the brand’s reputation and offerings have varied significantly over this period.
Ralph Lauren used to be known as a luxury brand, though the introduction of many different sub-labels diluted the brand’s prestige. The Ralph Lauren Purple Label and Collection line can be considered luxurious labels, though other offerings from the brand do not fall in the luxury category.
The Ralph Lauren Corporation has seen great growth over the years but also a marked change in the perception of the brand’s prestige.
From aspirational brand to a ubiquitous name
The brand was founded in 1967 and initially targeted itself towards consumers seeking aspirational lifestyles, from businessmen to athletes and more. However, over the decades the brand began to diversify its portfolio offering, introducing a variety of different lines from clothing to homewares.
By venturing into mid-tier and discounted retail channels, the Ralph Lauren brand was able to grow. It attempted to offer a balance of retaining more luxurious offerings while expanding into more affordable offerings, a strategy that certainly benefited it financially.
This diversification broadened the brand’s appeal and made it more accessible, though arguably the different lines were not differentiated significantly beyond their price points. This meant consumers could purchase similar styles from different lines at vastly different costs, which resulted in lower sales and excess inventory.
The brand also experienced long lead times, resulting in discrepancies for supply versus demand. The brand had to order merchandise 15 months in advance, meaning they were ordering stock with no reference for how the current year’s offerings would perform, let alone the following year’s demand and what retailers might want to order.
By the end of fiscal 2016 the brand had experienced far greater growth in inventory over a three-year period than growth in actual sales.
The brand produced large amounts of inventory in an effort to continue pushing growth in mid-tier retailers. However, it was too much inventory and the retailers and even the brand’s own stores couldn’t sell it all.
This resulted in retailers having to discount stock and more items being sold in the brand’s factory stores in order to reduce excess inventory. In turn, this increased Ralph Lauren’s ubiquity and decreased the luxurious status of the brand.
A lack of consolidation and focus in their offerings and branding resulted in Ralph Lauren losing much of its former glory in regards to being a luxurious brand.
One brand, many labels
While people think of the brand Ralph Lauren as a whole, there are many different sub-labels that vary in quality, price, and target markets. While some of these labels could be considered luxurious, others would not fall within this category.
Rather than considering whether Ralph Lauren is a luxury brand as a whole, it may be more useful to distinguish whether any of the brand’s labels are luxurious.
The Ralph Lauren Purple Label is the brand’s most expensive label and features their most premium items. Pieces in this label are often made in smaller numbers than the brand’s other labels and fall within luxurious price points.
The Purple Label line was launched in 1994 to provide premium men’s apparel and offers expertly tailored styles and meticulous construction. Inspired by London’s Savile Row tailoring, apparel under this label is often made in Italy by expert tailors and suitmakers.
Ralph Lauren’s Collection line can also be considered a luxurious line. The line features a range of premium women’s apparel, with many of the items crafted in Italy.
However, many of the brand’s other labels are not luxurious lines. So the question remains, can a brand truly be considered luxurious when it retains more affordable lines?
A turnaround?
The Ralph Lauren Corporation brought in a new CEO in 2015, Stefan Larsson, in order to reverse the company’s declining sales and diminished prestige. Though Larsson was CEO for less than two years, he began to implement various measures to overhaul the company, including reduced lead times, a more focused offering, and even destroying excess stock to prevent it being sold at discounted prices and devaluing the brand further.
A new CEO, Patrice Louvet, was brought into the fold in 2017 and for the most part seems to be adhering to the guiding principles laid down by Larsson to steer the brand back to its former glory. The company’s profits have risen and their discounting has reduced significantly, though many would argue there’s still a long way to go to reach Ralph Lauren’s former luxurious heights.