• Ralph Lauren has just announced strong sales in Asia, particularly in China.
• The iconic American brand appears to be resisting the luxury slowdown in China.
• Classic luxury, which Ralph Lauren embodies, resonates with Chinese consumers.

Ralph Laurenthe quintessential American brand, achieves what many of its luxury peers currently find almost impossible: obtaining Chinese consumers spend.

An integral part of Ralph Lauren’s success is that it is unafraid of its all-American character.

At a time when luxury conglomerates like LVMH and Kering are seeing their sales fall in China, hampered by problems such as its real estate crisis and the rise of “the shame of luxury”, the New York-based company finds quite the opposite.

In its second-quarter fiscal 2025 results, released Thursday, Ralph Lauren reported that global same-store sales were up 10%. Asia led growth, with same-store sales up 11% in the quarter. The company said revenue growth in Asia was up 10% in constant currency, with the China market alone growing by around 15%.

China remains a relatively small source of revenue for Ralph Lauren, accounting for only 8% of its overall business. But he’s heading towards something – and he knows it.

“I’ve said it before but it bears repeating in a volatile environment, Ralph Lauren is resolutely offensive,” Ralph Lauren CEO Patrice Louvet said Thursday during a conference call with analysts.

The logos are out, but “Preppy” is still present

A contributing factor the slowdown in luxury in China This is a move away from ostentatious displays of wealth, fueled in part by government policy.

Xi Jinping’s government has spent more than a decade discouraging ostentatious displays of wealth, fueling the rise of “luxury shame” among Chinese consumers.

Neil Saunders, managing director of GlobalData Retail, told Business Insider via email that while this movement has hit “overt” and “flashy” brands hard, it has created brands like Ralph Lauren, known for its ” classic and discreet luxury. , to prosper.

He said Ralph Lauren’s style and brand position is very supportive of current trends, in which consumers are not looking to flaunt their wealth but want products with longevity.

Martin Roll, global business strategist and senior advisor to consulting giant McKinsey, also told BI by email that Ralph Lauren’s embodiment of the “classic American lifestyle” was essential.

As the Chinese market shifts from ostentatious spending to “more refined, ‘timeless’ luxury,” Roll said, consumers want brands that “represent quality, authenticity, heritage and status.”

Speaking to analysts on the conference call, Louvet said staples such as cable sweaters, polo shirts and Ralph Lauren sport coats are what have driven sales, both in China and abroad. stranger.

“Our core resonates in Tokyo, Seoul, Shanghai and Milan,” he said. “At a time when consumers are worried about the future around the world, when they are more discerning about how they spend their money, they are truly transforming the brands they know. They are transforming product categories into who they trust.”

American, but avant-garde in China

While Ralph Lauren isn’t hiding his Americanism in China, he’s reinventing how he targets consumers there, which Roll says is key to his success.

“Ralph Lauren has established a strong online presence on major e-commerce sites such as Tmall and JD.com, as well as social media platforms like WeChat,” Roll said. “This omnichannel strategy allows the brand to reach a broader audience and engage consumers through multiple touchpoints outside of retail stores. »

He added that Ralph Lauren is connecting with China’s Generation Z, who are increasingly making up a growing share of luxury purchases through these same digital platforms, pop-up stores and exclusive collections.

With its physical stores, Ralph Lauren has thrived by doing more with less.

It targets only six key cities in China, including Beijing, Shanghai and Chengdu, in contrast to some luxury brands that have gone all out to open new, larger stores across the country during the post-COVID luxury boom. -19, some of them. now sit empty.

Leaning on sustainability — which Olivia Plotnick, founder of Wai Social, an advertising and social media company in Shanghai, says is another way younger generations in China are redefining luxury for themselves — plays also in favor of Ralph Lauren.

“Sustainable practices are becoming increasingly important to Ralph Lauren as it appeals to a younger, greener Chinese customer base,” Roll said, citing the company’s “Color on Demand” cotton dyeing initiative as an example. launched in 2021.

“This China for China approach demonstrates respect for local culture and values,” he added. “And it appeals to national pride and fosters loyalty to the Ralph Lauren brand.”

However, with The re-election of Donald TrumpLooming tariffs against China raise questions about how long Ralph Lauren’s victory in the region will last.

Roulé said American brands may have more difficulty attracting Chinese consumers following tariffs due to the rise of nationalist sentiment.

“It won’t be easier to be an Apple. It’s not going to be easier to be an LVMH. It won’t get any easier to be a retail brand in China, at least in the near future,” he said.