.jpg)
This article is part of our Vogue Business Membership package. To enjoy unlimited access to Member-only reporting and insights, our NFT Tracker, Beauty Trend Tracker and TikTok Trend Tracker, weekly Technology, Beauty and Sustainability Edits and exclusive event invitations, sign up for Membership here.
Ralph Lauren is in the dreams business — at least that’s what the designer and founder told his brand’s president and CEO Patrice Louvet over breakfast at his Telluride ranch more than six years ago, not long after Louvet joined the company from a 30-year career in consumer goods at P&G.
To fashion observers and aspiring entrepreneurs alike, recreating Lauren’s success in today’s industry can feel much like that: a dream. Can there ever be another Ralph Lauren?
“His approach is quite unique. The purpose that drives him, and us, is quite unique,” Louvet says, speaking in conversation with executive Americas editor Hilary Milnes at the Vogue Business Executive Summit. “I don’t think there will be another Ralph Lauren. But, I hope there will be other individuals that rise with a vision and ambition that’s distinctive, that’s timeless and can last not a year or series of seasons but decades.”
Louvet is busy thinking about Ralph Lauren’s own longevity, from here forward. In 2018, he introduced the brand’s ‘Next Great Chapter’ plan, which boils down to measures meant to reelevate Ralph Lauren’s status as a luxury brand by cleaning up its wholesale business and gaining back control over its distribution. The strategy’s most recent iteration, a three-year ‘Accelerate’ plan introduced last September, is designed to build on that initial premise by expanding key categories and growing the business internationally.
It’s been many years of growth for the business, which has come to define a lifestyle brand. The brand speaks to everyone, including the quiet luxury cohort and the “sophisticated casual” customer who has traded in more structured office attire for comfortable clothing, maybe an RL chunky cable knit. The US is its biggest market, but this year, pandemic rebounds hit a wall. In the first quarter of fiscal 2023, Ralph Lauren’s North American sales fell 10 per cent.
Times like these reinforce the leverage that high-end luxury brands have, says Louvet. “During crises, the customer tends to gravitate towards brands that they know, products they trust, and so that plays nicely for us.” More value-oriented shoppers are being hit by inflation and rising cost of living, but that’s a smaller and smaller group of Ralph Lauren customers, he says. How does that speak to everyone? “We’re a democratic brand. The team does a good job of combining familiarity with desirability.” That applies to the Ralph Lauren flagship, the online store and the metaverse, where Ralph Lauren has invested in establishing its ground and building worlds on platforms like Roblox.
Louvet makes clear it’s important not to chase trends, at risk of confusing customers. The key to staying close is to put in the time: Louvet says he and Lauren both visit stores, talk with associates and get consumer feedback on new releases. They look outside of fashion for inspiration and information on emerging technologies, like generative AI. Things are changing fast, and expectations and pressures on brands to be global, successful, sustainable and good are mounting higher. Does it ever get to him?
“We need to be purposeful,” Louvet says. “And that applies to our teams, the way we engage with our customers and our partners and the communities we operate in. We have a role to play to move the needle on the citizenship and the sustainability front.”
On the sustainability front: Louvet believes that the fashion industry must come together to share resources and work. “If we want to be here 50 years from now, this is core to everything that we do.” However, aligning growth and sustainability goals is often incongruous. Louvet says that while the brand’s revenue is growing, it’s selling fewer units. That’s part of the brand’s up-levelling strategy. “When you shift away from T-shirts, from hoodies, we’re able to increase revenue while not dramatically increasing the number of units. We’re focused on that and our innovation strategy is part of that as well.”
It’s easy to wonder if the Ralph Lauren brand has already been everywhere, done everything — and its next phase will entail refining that presence. Louvet says there’s much left to do.
“What excites me is the diversity of the growth drivers looking ahead. We have geographic opportunities [such as China and India], we have product category opportunities [such as outerwear and handbags]. We have gender opportunities. And we’re experimenting with hospitality. Our greatest challenge is making choices. We have a brand that is so broad, we can play in a lot of different spaces. We need to sequence how we do it.”
Comments, questions or feedback? Email us at feedback@voguebusiness.com.
