Ralph Lauren has seen a significant increase in sales in China, with a 50% jump in the last quarter. This surge is attributed to the company’s brand elevation strategy and a shift in Chinese consumer behavior towards labels that offer stronger value.

Brand Elevation Strategy

Ralph Lauren’s recent strength in China, where it has around 250 stores, is the result of a multi-year overhaul rather than a short-term rebound, according to executives and analysts. The company’s pricing positions it below European luxury houses, many of which have pushed steep price increases in recent years.

Collector Xiao Neng, a 23-year-old Ralph Lauren superfan, has spent at least $1 million on Ralph Lauren clothing over the past four to five years. He believes that Ralph Lauren provides people with a way to achieve the American Dream through its clothing.

Shift in Consumer Behavior

Chinese consumers are moving away from ultra-high-end luxury towards labels that offer stronger value. Ralph Lauren’s pricing, with dresses typically costing a few thousand yuan and shirts often under 2,000 yuan, is seen as offering great value to consumers.

According to Jacques Roizen, co-founder of Shanghai-based Foresight Performance Partners, a large group of Chinese luxury shoppers has pulled back from top-tier brands as confidence weakened. Ralph Lauren’s recent performance reflects both this shift and years of strategic changes, including a move away from heavy discounting and investments in upgrading stores and marketing.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.