Ralph Lauren changed chaussure from a licensed to owned segment in 2006 and restarted in 2008. At the meantime, the company got direct authorization of its licensed handbags and leather goods business. After then, the leather goods category has increased at an average of twenty percent annually. Currently, handbags, footwear and leather goods represent less than ten percent of total sales. The company has declared that they intended to increased this category to about twenty percent of the top-goods, which should support that this kind of goods will have gain more benefit than apparel.
So, Ralph Lauren (RL) change the appearance and sensation of the stores. Before then, when visitors come to the store, they are very possible to find the polo staple on the display.but now people will discover luxurious goods and accessories. The company is adopting careful methods to draw a very obvious distinction between its Polo based lineage and its aspirations as a serious competitor in the high-end luxury space.
When the company launched Ricky handbag, then, it will start at a price of two thousand and five hundred dollars and extends to eighteen thousand dollars, the company is putting into direct competition with the likes of Hermes, Dior, Valentino and Louis Vuitton, other brands. Ricky handbag is not so smooth at the beginning time. It adopted the strategy is that small profits but quick turnover, but the shift in strategy is clear.
The purpose behind the change towards the higher classes of luxury seems to be higher profits, but an swapped explanation is possible.The company can use this chance to re-engineer its brand image all around the world. Especially, it will improve the brand image in Asia, especially China.Then, it can also promote its sale amount and profits. Asia is just a ordinary market just now, and it only forms about twelve percent of the company’s current sales but this market will be promising in the future.China is the will be the biggest luxury market in the worldwide which spending on luxury goods in 2013-the majority of this spending was directed towards watches, personal care goods, perfumes and leather hand bags and so one. The Ralph Lauren brand is new to Chinese consumers and this provides considerable leeway to the company in terms of how it wants to sell its brand image. As a result, the company is using this time frame to gain a firmer foothold in the luxury goods market. The Polo Ralph Lauren will be accepted by more and more Chinese.