STRENGTHS:
- Global Brand Recognition: Ralph Lauren is “a global leader in the design, marketing and distribution of luxury lifestyle products in apparel, footwear and accessories… and one of the most widely recognized families of consumer brands” (World Economic Forum). Known for its prestigious luxury reputation and high-quality products, the brand has a global reach that ensures brand loyalty, retention, and customer satisfaction.
- Diversified Product Portfolio: Ralph Lauren offers a wide array of products including apparel, accessories, home furnishings and fragrances. Additionally, the Ralph Lauren brand includes a broad portfolio of brand names like Polo by Ralph Lauren, Chaps, Ralph Lauren Purple Label, and RL Collection. The diversification of these products allows the company to capture multiple revenue streams and appeal to a wide array of consumer preferences.
- Strong Americana Brand Identity: The brand is known for its American luxury and classic design that not only appeals to the US audience, but also resonates with consumers worldwide. Through consistency in design and quality standards, the company’s brand identity and niche has been a key differentiator within the fashion industry.
WEAKNESSES:
- Affordability: Within the luxury fashion space, the brand uses a premium pricing strategy that can function as a barrier to entry for younger consumers, families with children with less disposable income, and price-conscious customers. Because of this, affordability remains a challenge for potential new customer segments.
- Limited Appeal to Younger Audience: With the brand’s emphasis on timeless, classic designs of sweaters, polos, and more reserved clothing, younger generations are less likely to be interested in the Ralph Lauren brand. Young consumers who prefer trends may not be willing to purchase Ralph Lauren classics and the misalignment may lead to missed opportunities for an untapped audience.
- Operational Costs: According to Yahoo Finance, Ralph Lauren has faced challenges with operational costs. Selling, general, and administrative expenses rose from $900.8 million last year to $967.6 million this year. This growth in expenses could potentially diminish operating margins over time, and create a need for an analysis of operational efficiencies.
OPPORTUNITIES:
- Social Media Advertising & Influencers: While the primary target audience (older adults) may not be on social media, Gen Z and millennials are. With this in mind, Ralph Lauren has an opportunity to acquire new customers through social media by reaching them on platforms they already are on and partnering with influencers that younger generations trust and listen to.
- International Growth: By leveraging its strong brand image, Ralph Lauren can expand into international markets and hone in on new customer segments. By strategically opening retail stores in international cities, the brand can harness the spending power of higher-end consumers and convert them into returning, loyal customers.
- New Collections To Attract Younger Audiences: By creating more affordable, trendy collections that target younger consumers, Ralph Lauren has the opportunity to tap into a new audience and revitalize the brand to be more engaging to the youth. To best help sell the collection, the brand can parter with celebrities and influencers that align with Gen Z and millennials to leverage their fan base.
THREATS:
- Luxury Fashion Competition: Operating in a highly competitive industry, many brands are fighting for market share. To remain relevant, Ralph Lauren must continue to innovate and adapt to changing fashion trends (Yahoo Finance).
- Slowing Luxury Market Due To Inflation: Due to the current economy and inflation, the luxury market is slowing down and spending habits are shifting. Because of the increased cost of living, people are less likely to splurge on designer clothing and on non-essentials like designer clothing.
- Counterfeit Products: Due the the widespread influx of counterfeit products, Ralph Lauren may be up against a problem with ongoing legal battles and anti-counterfeiting efforts to maintain their brand integrity and profitability. Counterfeit Ralph Lauren products dilute brand value, misleads consumers, and can impact sales.
*All content is for academic purposes only and in no way affiliated with Ralph Lauren.