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Ralph Lauren wants to build “ecosystems” around its brand in local markets and has determined that some, including retail offerings in Los Angeles, are underdeveloped. So the brand famous for preppy Americana, Colorado ranch style and New York glamor extended its universe to Southern California this week for a three-day extravaganza centered around the presentation of its spring 2023 collection on Thursday in the venerable Huntington Gardens in San Marino.
J-Lo and Ben were there, as were Ashton and Mila, and Diane Keaton. Sly Stallone arrived early for pre-show cocktails. Robin Wright slid into her seat just in time for the podium. But beyond its celebrity appeal, the event marked a new stage in the development of Ralph Lauren. The ecosystem strategy, first tested in China, is now being transported to the United States.
Behind this new approach is Bob Ranftl, who was promoted earlier this year from chief operating officer (commercial) at Ralph Lauren to general manager for North America. In one of his former roles, Ranftl had been tasked with developing the label’s business in China. It took a city-by-city approach – building ecosystems around a flagship product, with smaller ancillary stores, and supported by wholesale and digital.
The brand quickly learned that where its ecosystems are robust, with healthy flagships and smaller stores and wholesale accounts nearby, the average unit of income is higher, meaning shoppers spend more and buy more expensive items. Digital sales are also increasing, Ranftl says.
In his promoted role, he now focuses on developing 14 ecosystems in North America (there will be 30 worldwide), largely based on cities with centers of wealth, including Los Angeles, San Francisco, Seattle, Chicago, New York, Atlanta and Miami. “We’re taking the Asian model and building store ecosystems,” says Ranftl, who spent part of the past week in San Francisco looking for potential retail space. In September, the brand – which reported revenue of $6.22 billion for its fiscal year 2022 – unveiled plans to open 250 new stores over the next three years, across North America, Asia-Pacific and in Europe. Ranftl said 15 to 20 of those stores will be in North America, where he said the brand is “underdeveloped” outside of the northeastern United States.
