Ralph Lauren uses new millennial clientele to increase sales

Ralph Lauren took an unexpected turn with its second quarter earnings. While analysts expected the brand to experience a 0.9 percent decrease in sales, Ralph Lauren instead saw an overall growth in sales by 1.6 percent, amounting to 1.69 billion dollars.

Ralph Lauren’s sales and customer-base had been shrinking in recent years, due to its lack of discounts and promotions, the brand believes. Its second quarter earnings show that the brand has turned this around through its new marketing strategy.

Ralph Lauren has turned its focus to boosting its social media marketing, targeting high-spending millennials with celebrity and influencer strategies. The brand reportedly spent 30 percent more than normal on its marketing endeavors between July and September. In addition to the use of social media, Ralph Lauren has used events such as its 50th anniversary celebration and collaborations with streetwear brands such as to reach a younger audience.

Most recently, Ralph Lauren teamed up with British streetwear brand Palace for a collaborative line of menswear including outerwear, shirts, chinos, shoes and accessories. Palace is quickly growing and has become a favorite by celebrities including Rihanna and Jay Z. Its revenue increased by 79 percent between January 2017 and January 2018, turning over about 25.9 million pounds, according to Business of Fashion. Teaming with popular younger brands such as this seems to be the right move for Ralph Lauren. Their collaborative collection launched this week.