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25 April 2024

Clear, consistent message is key to brand growth for American luxury label

Ralph Lauren watches are now available in the UAE. (SUPPLIED)

Published
By David Tusing

David Lauren wants to create greater clarity for fans of his brand in the Middle East. As the vice-president and communications director for the $1.3 billion (Dh4.7bn) Polo Ralph Lauren, he thinks now, more than ever, is an essential time for consistency.

"There's no doubt that the Ralph Lauren brand is very well known around the world. But since we began more than 40 years ago, there's been a lot of product segmentation and diversity and as a result things are being rethought all the time.

"In America and Europe, it is very much thought of as a luxury brand and we are trying to create that consistency in every region."

Lauren, the son of Ralph Lauren, founder of the eponymous lifestyle brand, was in Dubai recently – his first in the region – to reiterate what he calls the company's "renewed interest" in the region.

"We have new attention being paid to the Middle East and also to China and we want to make sure that the brand feels strong and that they everyone gets a clear sense of who we are," says Lauren.

"That's why we opened our luxury flagship store last year in Dubai, as a testament to our success in the region, and recently launched our exclusive watch collection in the city. We've been around for many decades but this is the first time we are taking active interest in these two growing markets."

Last year, Ralph Lauren Watch and Jewelry Company revealed its first collection of timepieces at Salon International de la Haute Horlogerie watch fair in Geneva, Switzerland. The company, also based in Geneva, is a joint venture group between Ralph Lauren and Swiss luxury goods maker Richemont, with the partners each owning 50 per cent of the new entity.

Prices for the watches, which retail at Ahmed Seddiqi & Sons in the UAE, start at $9000.

American fashion designer Ralph Lauren founded the company in 1967 and still presides as CEO and Chairman. Polo Ralph Lauren went public in 1997 and is traded on the New York Stock Exchange.

The company, with the help of local partners the Chalhoub Group, manages four boutiques in Dubai, one of which, at 6,700sq ft, is its biggest and flagship store in the region, which opened in April last year at The Dubai Mall.

One of the first fashion houses to actively diversify, there are currently 25 brands under the Polo Ralph Lauren umbrella. The company is also in the process of buying back a number of brands which had been licensed out to various companies around the world.

"There is a significant growth opportunity to take control of the brand and grow it quickly," says Lauren.

"Sometimes, it's best to have control of your brand. But depending on the market and the products, we also get into partnerships for the many products we create because they bring in an expertise. Where we feel we can do it ourselves, we do it. Either way, we make sure our partner brings the quality that is associated with the brand and is exciting."

Brian Duffy, the head of the company's European operations, under whose watch the Middle East market falls, told Emirates Business last year that it was making a concerted effort to wrest back control of all its brands.

In 2001, it bought back its European luxury brands division from an Italian licensee and then gained control of the menswear and childrenswear line from a partner in Paris in 2002.

Then in 2006, Ralph Lauren bought Polo Jeans Co, a denim brand targeted at younger consumers, from Jones Apparel Group, an American wholesaler of branded clothing for a reported $355 million.

The brand, launched more than 10 years ago, was never directly owned by the company. "We've been very consistent in that regard. We are already in possession of some of the world's best brands. We have very strong cash reserves and a wonderful balance sheet," Duffy said in the interview.

Lauren, who has also actively pushed the brand online, said the company will soon launch online sales for Europe very soon. "We do hundreds and millions of dollars' worth of business on our website but right now, it's only for shoppers in America. We are looking to soon open it for people around the world.

"We were one of the first fashion brands in the world to pioneer the use of the internet and host some of our shows online. The internet is indeed the future and brands that are not accessible easily only lose being left behind," he says.

Another major interest is in sports marketing, something the company is looking to expand on, he adds.

Ralph Lauren was the official outfitter for the US teams at the 2008 Olympic games in Beijing and the recently concluded Winter Olympics in Vancouver.

The company has also been signed on to design team outfits for the coming 2012 Games in London.

"We are very diversified and we look for many avenues to reach our customers. From the internet, mobile technology, glamourous sports events or through sports marketing," says Lauren.

"We outfit golfers, tennis players and pick sporting events that are appropriate for our brand value. Our marketing has to be very clear and very focused and I think we have done that better than everybody."

Founder Ralph Lauren paved the way for other fashion brands when he launched a home collection in 1983. Many designers have followed suit and have diversified into various lines.

Lauren says his company would only put its name on a product only if it was sure it would add to the brand.

"We have been the first to develop many brands. The shop-in-shop concept was created by Ralph Lauren and the designer store was something he helped to pioneer.

We're always looking for new opportunities. We are opening a restaurant in Paris, which will be our first in Europe – we already have one in Chicago – and we are hoping this will open new doors for us and will reach new customers in new ways," he says.

"When we feel there is a market and we feel the customers are there for it and that the time is right, we go ahead. And most of the times we have been successful."