The well-known clothing manufacturer announced its intention to “strive for growth through digital initiatives.”
“Digital initiatives” refers to steps such as the use of a subscription and rental system for clothing, as well as its resale. The company will not be renting things on its own, but through cooperation with Urban Outfitters services from Nuuly and Rent the Runway. As for the subscription, to implement this idea, an agreement was concluded with the Trunk Club service from Nordstrom. With these steps, Ralph Lauren seeks to attract members of the younger generation who consider themselves to be a socially responsible group. That is, those who believe that constantly buying new clothes and then throwing them away after a couple of months is irresponsible behavior that damages the environment.
At the same time, Ralph Lauren is cutting back on advertising campaigns, focusing on other ways to promote, like the digital initiatives described above. However, although the clothing manufacturer is focused on the digital direction, its wholesale operations, although declining, nevertheless remain an important source of income.
The company also announced its intention to raise prices to offset tariffs that have increased due to the current economic and political situation. But at the same time, it is promised that the rise in prices will eventually lead to an expansion of the range and improvement of services.
It looks like the company is moving in the right direction. After all, net income Ralph Lauren for the second fiscal quarter of the current fiscal year increased to $182 million, from $170 million in the same period last year.