One new store a week for Ralph Lauren China
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Ralph Lauren CEO Patrice Louvet has promised to open a store a week in China. Speaking at The New York Times Luxury Conference in Hong Kong last week, Louvet said stores “are crucial for projecting the company as aspirational” which is why Ralph Lauren China is committed to expanding its network despite widespread concerns over an economic slowdown.
“We concluded that we are in the dream business,” Louvet told the conference. “So to some extent, we think we are closer to a company like Disney than we are to other apparel brands … we don’t believe we are just selling stuff, we are selling a dream, a lifestyle, we are offering worlds that customers can be a part of.
“[So] for us to provide those experiences, we need both the digital world and the brick-and-mortar world.”
That is part of the philosophy behind the launch of the Ralph cafe, the brand’s first coffee shop, which opened recently in Hong Kong.
In the latest quarter, Ralph Lauren’s sales in Greater China rose more than 20 per cent, with the mainland growth rate double that.
Ralph Lauren is targeting $500 million in revenue from Greater China within five years.
Questions & Answers
Q.What is the primary reason Ralph Lauren is expanding its store network in China despite economic concerns?
What is the primary reason Ralph Lauren is expanding its store network in China despite economic concerns?
Ralph Lauren sees stores as crucial for projecting the company as aspirational. CEO Patrice Louvet believes they are in the 'dream business', selling a lifestyle and experiences, which requires both digital and physical presence.
Q.What recent financial performance has Ralph Lauren seen in the Greater China region?
What recent financial performance has Ralph Lauren seen in the Greater China region?
In the latest quarter, Ralph Lauren's sales in Greater China increased by over 20 per cent. The growth rate on the mainland was twice this amount, indicating strong performance.
Q.What is Ralph Lauren's long-term revenue goal for Greater China?
What is Ralph Lauren's long-term revenue goal for Greater China?
Ralph Lauren is aiming to achieve $500 million in revenue from the Greater China market within the next five years. This target underlines their significant investment and expansion plans.
Q.How is Ralph Lauren diversifying its brand experience beyond traditional apparel stores?
How is Ralph Lauren diversifying its brand experience beyond traditional apparel stores?
Ralph Lauren is diversifying through initiatives like the recently opened Ralph cafe in Hong Kong. This brand's first coffee shop is part of their philosophy to provide immersive customer experiences, akin to being in the 'dream business'.
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