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
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.