By Owen Patterson

July 27, 2023

“Ralph was actually telling me recently that the first tie [he launched] was twice the price of a Christian Dior tie”, Said Patrice Louvet, CEO of Ralph Lauren (Sherman, 2022). European fashion has long been the image of Luxury fashion. Ralph Lauren, an American brand, was founded by Ralph Lauren in 1967. To learn more about the brand’s origin, listen to Owen’s Exhibit S1 EP17. Now, the brand is aligned to assimilate luxury fashion because of internal decision making and external trend forces. Decisions related to raising prices and putting on fashion shows are some ways RL is aligning itself with the luxury image. Luxury prestige also comes with having the attention of mass consumers and influential figures. RL has the perfect opportunity to capitalize on current trends because its timeless Americana/Western aesthetic and understated pieces are in trend. The Ralph Lauren brand is on track to join European brands on the luxury pedestal because of their decisions to increase prices and host fashion shows, and because their product offerings coincidentally align with trends. 

Mass consumers have not been oblivious to the recent hikes in prices. RL has been strategically increasing prices for the past few years to appear more premium and be in the same price range as other top luxury brands. Ralph Lauren said “it has raised the average price of its products by around 80 percent since 2018” (Bloomberg, 2023). An 80 percent price hike far exceeds usual patterns and is an obvious move toward the high-end luxury price point. Louvet’s plan to increase prices is meant to improve the cachet of RL’s brands (Bloomberg, 2023). Price increases are just one way decision makers at RL are positioning the brand to penetrate the high-end luxury fashion circle. 

A second way that RL decision makers are boosting the brand’s luxury appeal is by hosting elaborate fashion shows. “Most recently, Lauren appeared on the Milan Fashion Week Men’s calendar in June, during which he debuted a Purple Label collection, titled Dolce Vita” (Kelly, 2023). News has been circulating about an upcoming show for the brand. According to WWD, “Ralph Lauren is returning to New York Fashion Week in September. The designer plans to stage a women’s fashion show on the evening of Sept. 8” (Lockwood, 2023). It has been a few years since the brand has shown during NYFW. The decision is motivated by clear intentions. Referring to a runway show in Los Angeles during October 2022 that showcased 120 looks from RL sub-brands, “Louvet noted that the company has in fact increased its marketing spend, committing to allocating 6.5 to 7 percent of its budget to these sorts of projects, up from around 4 percent pre-pandemic” (Sherman, 2022). Fashion shows are key to building and maintaining brand perception. Fashion shows, “When done in a modern light,” Louvet said, “it continues to be the type of activity that spikes the most brand interest.” (Sherman, 2022). For a brand to be on the same level as Louis Vuitton, Gucci, and other top European luxury brands, sending models down the runway makes sense. “To some degree, Ralph Lauren and competitors like Michael Kors and Coach — no strangers to lavish, star-studded fashion shows themselves — are all chasing the same goal: compete against the European luxury heavyweights not only in terms of sales growth and margins, but brand affinity, too” (Sherman, 2022). The commitment to put on fashion shows is just another way RL is making decisions that reflect its trajectory to become a top luxury fashion brand.

Then, there are external forces at play. Western themed and “Quiet Luxury” trends are looks that RL caters to through its brands Double RL and the Purple Label respectively. Increased demand for Ralph Lauren products because of having on trend styles will give the brand more affinity which it needs to reach the European luxury sphere. “Cowboy core is having a moment. The cowboy aesthetic and Western inspiration had long permeated American fashion from the days of Western movies to the commercialization of country music. Cowboy boots and cowboy hats are often the sartorial basis for many a country music video — but now, the country vibes seem to be branching further into pop culture. Cowboy core is the latest trend sweeping the internet and has found an audience from TikTok’s Gen Z fashion lovers to Beyoncé’s die hard “Beyhive” fans” (Fraser, 2023). Those familiar with Ralph Lauren know the brand embodies and reflects a Western theme. “High fashion Western wear owes a huge debt to Ralph Lauren, who made the frontier look chic” ( Hyland, 2022). Western wear is core to the brand’s image. Another trend that RL caters to is “Quiet Luxury”. According to Jackson, ““Quiet Luxury” is a look that will stand the test of time, as it’s essentially a synonym for elevated basics” (2023). Jackson adds, “Thanks to the pared-back stylings of brands such as The Row, Bottega Veneta, and Khaite, we have seen a return to a more low-key approach to luxury—“quiet luxury” as some people are calling it, or non-trend trends”  (Jackson, 2023). Activist Malala Yousufzai, has worn a few understated looks by Ralph Lauren. British Vogue invited Malala to Wimbledon, where she wore a white outfit by Ralph Lauren which closely resembled traditional Pakistani clothes (Images Staff, 2023). “Styled by Dena Neustadter Giannini, the Malala Speaks Out writer opted for a long solid shirt paired with matching culottes, creating a simple yet elegant look” (Images Staff, 2023). Before she served a RL look at Wimbledon (notice the pun), Malala was seen wearing RL at the Oscars. “At the prestigious event, she turned heads in a sequined silver hooded gown by the same designer which featured exquisite ruching at the waist” (Images Staff, 2023). Malala’s choice to wear RL reflects the brand’s appeal to influential people and its ability to create elegant yet understated styles. Ralph Lauren has a strong foundation in Western and simple elevated styles to appeal to current trends which will result in the type of consumer affinity and demand that top luxury brands’ possess. 

But with all this information, how do we know that Ralph Lauren is already on track to become a top luxury brand? Because consumers associate the brand with luxury fashion, and popularity for the brand is growing. Since Louvet’s appointment as CEO in 2017, “Ralph Lauren has cut costs, raised prices and moved away from obvious discounting with the intention of cementing the label’s status as a luxury brand. – (Internal surveys show that globally, 74 percent of consumers view Ralph Lauren that way.) (Sherman, 2022). Data shows the brand has achieved luxury status in consumers eyes. “In the past four years, the company has acquired some 20 million new customers, many from segments of the population — geographically, ethnically and gender-wise — that it might not have engaged with in the past” (Sherman, 2022). A growing customer base is just what RL needs to place it alongside luxury’s top fashion brands. Data showing consumer perception of RL as luxury and increased customers, reveals that RL is right on track with its aim for the stardom that was previously reserved for European fashion houses.

There are multiple internal and external factors that are aiding RL’s journey to the top. It appears they made a great choice by appointing a new CEO. Without him, it is hard to determine whether joining luxury’s best was even in the plans. Cowboy core and “Quiet Luxury” were not in the plans. But the trends are contributing to the brand’s success. You too, may have never considered the Polo bear eyeing up to conquer Gucci or Burberry. If you consider the internal decision making and external trend forces at play, you’ll realize that RL is set up to join the top luxury fashion brand circle. For an in-depth history about the brand, listen to Owen’s Exhibit S1 EP17. 

References

Bloomberg. (2023, July 18). Ralph Lauren Raising Prices to Enhance Brand Prestige. Business of Fashion. Retrieved from https://www.businessoffashion.com/news/luxury/ralph-lauren-raising-prices-brand-prestige/

Fraser, K. (2023, February 14). Cowboy Core: The Latest Trend Taking Over the Internet, From Beyoncé to Fashion. WWD. Retrieved from https://wwd.com/pop-culture/culture-news/cowboy-core-latest-trend-internet-beyonce-1235516158/

Hyland, V. (2022, September 12). The Western Fashion Trend Isn’t Going Anywhere in 2022. ELLE. Retrieved from https://www.elle.com/fashion/a41092576/western-fashion-trend-2022/

Images Staff. (2023, July 11). Malala’s white Ralph Lauren outfit had everyone’s attention on her at Wimbledon [Image]. Images. Retrieved from https://images.dawn.com/news/1191916

Jackson, L., & Montgomery, J. (2023, March 6). The Rise of Quiet Luxury: How Subtle Elegance Became a Trend. Vogue. Retrieved from https://www.vogue.com/article/quiet-luxury-trend

Kelly, D. (2023, July 10). Ralph Lauren to Return to New York Fashion Week in September. HYPEBEAST. Retrieved from https://hypebeast.com/2023/7/ralph-lauren-return-new-york-fashion-week-september

Lockwood, L. (2023, July 10). Ralph Lauren Will Return to the Runway for New York Fashion Week on Sept. 12. WWD. Retrieved from https://wwd.com/fashion-news/designer-luxury/ralph-lauren-will-return-to-the-runway-for-new-york-fashion-week-on-sept-1235720569/

Sherman, L. (2022, October 17). Ralph Lauren Appoints Patrice Louvet as CEO of Luxury. Business of Fashion. Retrieved from https://www.businessoffashion.com/articles/luxury/ralph-lauren-patrice-louvet-ceo-luxury/