The New Luxury

To map out international expansion in these areas, Ralph Lauren is modeling its approach on its second-largest market, Japan (the company doesn’t break out specific sales by country, only region). Six years ago, the brand turned sales around in Japan by localizing its regional management team, building a network of small but profitable stores, and putting resources behind Japanese social media channels, celebrities and local trend preferences. It also improved the brand’s positioning by reducing several hundred promotional or underperforming retail outlets in Japan, and raising prices on every piece it sold. In that time frame, revenue grew by 6 percent each year, with net sales up 20 percent each year.