Ralph Lauren Will Dig Deeper Into China'S Market Potential

According to the world clothing shoes and hats net, the United States is famous.

Brand Ralph Lauren has focused on reforming business models in the past two years.

Constant changes and challenges in the industry.

The company's new chief executive, Patrice Louvet, is taking the lead in the pformation of the CEO Stefan Larsson as she took office in October.

Patrice Louvet has been working closely with brand founder Ralph Lauren, and recently announced the company's three main goals:

1) urgent need to improve the quality of performance and distribution network.

2) Ralph and Lauren are lagging behind peers in promoting products and marketing to attract young consumers.

3) expand digitalization and international expansion.

At the recent analyst conference call, Patrice Louvet made it clear that China

It is the primary goal of the company's expansion strategy.

At present, Ralph Lauren has a relatively small business in the Asian market.

As of September 30th, the sales volume of Ralph Lauren in the Asian market in the second quarter increased by 4% on the basis of the fixed exchange rate, but the sales volume in Asia was below 217 million US dollars at the current exchange rate. It was unchanged from the same period last year. However, after a long period of losses, the Asian market turned into a deficit and realized a profit of 26 million 500 thousand US dollars in the current quarter.

Ralph Lauren initially authorized business in the Chinese market. In 2010, the company took back the right of direct sale and began to improve its sales network, so as to continuously enhance its positioning of luxury brands.

At present, the company's strategy to expand the Chinese market is to tap the demand for Polo shirts.

Patrice Louvet said that in fiscal year 2017, the company expects to generate 50 million US dollars in sales revenue in mainland China, accounting for less than 1% of the world's total sales revenue.

According to the data provided by research firm Millward Brown, the popularity of Polo brand in China is as high as 83%.

Compared with many competitors who have penetrated deeply into the Chinese market, Ralph Lauren has higher popularity and greater potential for growth.

The company will boost growth by strengthening offline and online marketing and distribution.

In order to win more Chinese consumers, Ralph Lauren has worked with local fashion opinion leaders and invited several celebrities to speak.

At the same time, Ralph Lauren began to enter Tmall, Jingdong, WeChat and other Chinese e-commerce platform, and continuously strengthen multi-channel solutions.

Patrice Louvet introduces that in addition to strengthening Ralph Lauren's business in China, the company also pays attention to opening up physical stores, increasing profit margins, and adjusting the pricing structure of all sales channels.

Last year, Ralph Lauren opened 15 small stores in mainland China.

By the end of fiscal year 2018, the company plans to increase the number of stores to 60.

The average age of consumers is 34, and the ratio of men to women is equal.

Of course, for Ralph Lauren, the attraction of the Chinese market is not only on the huge scale of consumers, but also in other attractive places.

For example, Chinese consumers are keen on high priced products and accessories products of Ralph Lauren.

At the same time, the Asian market is the best market area for brand profit margin.

With more mature markets in China's Hongkong, Macao and Taiwan, Patrice Louvet has shown great confidence in Greater China: "our goal is to achieve sales of about $500 million in Greater China within five years, and sales in the 2017 fiscal year are about 170 million dollars."

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