Ralph Lauren’s Business, Revenue, and Social Media Models  

Ralph Lauren, an American based global leader in producing and selling premium lifestyle products, has traded for over 30 years, becoming one of the world’s most recognisable families of brands. Collectively they own 151 stores across Europe, North America, and Asia, retailing their 5 main brands:  

• Ralph Lauren Luxury 
• Polo Ralph Lauren 
• Lauren Ralph Lauren 
• Chaps 
• Hospitality 

The brand tailors’ products to different societies and audiences, while expanding price tiers for a diverse market. Primarily retailing apparel, Ralph Lauren have expanded their portfolio to include home wear, a restaurant chain, and a collection of coffee shops (Statista, 2021a). Ralph Lauren’s mission statement “to inspire the dream of a better life through authenticity and timeless style”, is achieve by producing trendy, in-demand fashion for customers, retaining their reputation and brand image. Additionally, the vision statement “to be a global leader in the design, marketing, and distribution of premium lifestyle products” demonstrates dominance in the industry, emphasizing their high-quality products and customer experience. This, alongside “speed, innovation, teamwork, and transparency”, increases customer satisfaction and loyalty, ensuring efficient business operations, satisfied employees, and loyal customers. (Mission Statements, 2022).  

Financially, Ralph Lauren retails their products and a high price, reflecting their quality. Over the last 4 years, their revenue has consistently lied around US$6 million, until this decreased largely in 2021 to US$4,400.8 million, post-pandemic. Following this trend, the higher the revenue, the lower the cost of sales, maximising profit (Ralph Lauren, 2021b). Therefore, in 2019, costs were lowest as revenue was high, however in 2021, revenue was low so costs increased as mass production could not occur, decreasing profit. View Ralph Lauren’s financial performance here.  

Ralph Lauren encourages website views to subscribe to emails before continuing their search, enabling customer relationships to develop through personalised marketing emails. Their activity on Facebook, Instagram, and Twitter also enables them to achieve a high customer reach, boosting their online presence and increasing sales.  

References:  

Statista (2021) ‘Number of retail stores of Polo Ralph Lauren worldwide, as of 2021, by region’. Statista. [Online]. Available at: https://www.statista.com/statistics/268528/number-of-polo-ralph-lauren-stores-by-region/ [Accessed 06/01/2022] 

Ralph Lauren Corporation, (2021a) ‘Brands’. Ralph Lauren. [Online]. Available at: https://corporate.ralphlauren.com/brands [Accessed 06/01/2022] 

Mission Statements, (2022) ‘Ralph Lauren Mission and Vision Statement Analysis’. Mission Statements. [Online]. Available at: Ralph Lauren Mission Statement 2022 | Ralph Lauren Mission & Vision Analysis (mission-statement.com) [Accessed 06/01/2022]  

Ralph Lauren (2021b) ‘Ralph Lauren Investor Relations’. Ralph Lauren. [Online]. Available at: Income Statement | Ralph Lauren Corporation [Accessed 06/01/2022]