Polo Ralph Lauren to open own China stores

Polo Ralph Lauren is planning to open its first company-owned stores in mainland China. Roger Farah, president, told analysts the brand was looking for store locations not only in the fashion capitals of Beijing and Shanghai, but in other

Chinese cities. “A lot of second- and third-tier cities are now beginning to gel and exhibit customer demand, and so we are going to have to look at those at the same time we’re looking at the primary cities for key locations,” Mr Farah said.

Many brands prefer to operate their own stores instead of licensing product, so that they can control the integrity of the brand and increase profits.

Farah said Polo Ralph Lauren planned to establish an e-commerce presence in China and elsewhere in Asia to reinforce its brand, describing China as a “once-in-a-lifetime opportunity.”

“We are going to have to move quickly to accelerate our strategy of e-commerce in that region because I think that will help overlay the brand positioning we’re trying to achieve,” he said.

Asia accounted for just over 9 per cent of the group’s revenues of $4.9bn in its most recent fiscal year, with about 70 per cent of its business coming from North America.

Mr Farah said Polo Ralph Lauren was also looking to open high-profile, company-owned stores throughout Asia, in contrast with its previous dependence on licensees focused on selling its men’s wear line through concessions or leased space in department stores.

In its home US market, Polo Ralph Lauren has used its stores, such as the 26,000 sq ft faux Gilded Age mansion opened last year in Manhattan, to reinforce its image as a lifestyle brand that embraces not only fashion but accessories, home furnishings and other items.

Polo Ralph Lauren’s decision to take control of its local Asian licensees mirrors a similar move in Asia by Coach, the luxury handbag and accessory brand, in 2008, before significantly expanding its presence in China, Hong Kong and Taiwan.

Image: Polo Ralph Lauren SS11
Source: FT©