Ralph Lauren initially focused on licensing in the Chinese market. In 2010, the company took back its direct franchise and began to improve its sales network, constantly upgrading its luxury brand positioning. At present, the company’s strategy to expand the Chinese market is to tap the demand for Polo shirts.
Patrice Louvet says it expects to generate $50 million in sales in mainland China in fiscal year 2017, accounting for less than 1% of global sales. According to the data provided by research firm Millward Brown, the popularity of Polo brand in China is as high as 83%. Ralph Lauren has greater visibility and growth potential than many competitors who have penetrated the Chinese market deeply.
The company will boost growth by strengthening offline and online marketing and distribution. Ralph Lauren has partnered with local fashion opinion leaders and invited celebrities to endorse him in an effort to reach out to more Chinese consumers. At the same time, Ralph Lauren has begun to march into China’s e-commerce platforms such as Tianmao, Jingdong and Weixin, and has steadily strengthened its multi-channel solutions.