Ralph Lauren to pursue higher margin customers; to reduce wholesale distribution

The US-based fashion retailer Ralph Lauren, unlike many of its competitors, is still trying to get back its digital business on track. In fact, its Q1 digital sales in North America grew just by 3 per cent even in these tough times.

As a part of its efforts to bring back its e-commerce business on track, the retailer is now working on defining a customer base that’s more high-end than the existing one.

And how’s it doing it!

The fashion label is creating ‘smart customer profiles’ in some regions that will enable it better target advertisements and avoid sending promotions to those consumers who are willing to purchase products at full price.

However, the retailer is unsure how many high-end consumers will rush to purchase high-end products.

Ralph Lauren is still keen to hit this segment as it believes to be more accommodating of its recent hike in price, reduced promotions and selection of higher-end items.

Meanwhile, the retailer has said it intends to reduce its wholesale distribution though it still has significant presence of stores. However, as per reports, to better oversee Ralph Lauren aesthetic and consumer targeting in wholesale, the company is one of very few brands to integrate its digital team with Macys.com.

Ralph Lauren, which produces products ranging from mid-size to luxury segments, generates revenue of US $ 6.182 billion.





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