Luxury / news
Ralph Lauren Reports 50% Sales Surge in China as Value Strategy Pays Off
Ralph Lauren posted a 50% sales increase in China last quarter, outperforming a subdued luxury market, driven by a multi-year brand overhaul and a shift in consumer preference toward value-oriented labels.
The company operates around 250 stores in China, and CEO Patrice Louvet attributed the gains to long-term brand-building rather than a temporary rebound. He said on an earnings call that the company is laying foundations for the next 10 to 20 years.
The brand's strategy aligns with a broader Chinese consumer shift away from ultra-high-end luxury toward brands perceived as offering stronger value. Ralph Lauren's pricing is below that of major European houses, which raised prices 36% on average between 2020 and 2023, according to Bernstein.
The broader luxury sector remains challenged by weak consumer confidence, a property downturn, and concerns over jobs and income. Bain projects a "slow recovery" for China's luxury market in 2026 after several years of contraction.