Product details

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Abstract

American fashion designer Ralph Lauren (Lauren) built his iconic apparel brand with the elite American lifestyle as the foundation and founded one of the world's most successful business empires, the Ralph Lauren Corporation (Ralph Lauren). After decades of consistent growth, the company's sales were declining. Experts felt this was due to years of heavy discounting and a strategy of flooding the struggling fashion market with its lower-end goods. They also felt it was time for the founder to step down and bring in new blood at the top level. Subsequently, Lauren stepped down as CEO in 2015 and brought in Stefan Larsson (Larsson) who was known for increasing sales at low-end retailers such as, Old Navy and H&M. But Larsson's 'Way Forward Plan' failed to revive the fashion house. In addition to this, a clash with its founder led to the resignation of Larsson in early 2017. In July the same year, Patrice Louvet (Louvet), a veteran of P&G, who had no fashion experience but a boatload of turnaround and branding experience, was brought in as the new CEO. By 2019, Louvet's long term plan for the company's turnaround entitled 'Writing Our Next Great Chapter' was beginning to show results in Europe and Asia, even as the performance in the North American market remained weak. Experts wondered whether Louvet's gambit would change the fortunes of Ralph Lauren.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Ralph Lauren
Employees:
10000+
Turnover:
USD 6.18 billion (2018)
Type:
Public company
Industry:
Fashion apparel and accessories

About

Abstract

American fashion designer Ralph Lauren (Lauren) built his iconic apparel brand with the elite American lifestyle as the foundation and founded one of the world's most successful business empires, the Ralph Lauren Corporation (Ralph Lauren). After decades of consistent growth, the company's sales were declining. Experts felt this was due to years of heavy discounting and a strategy of flooding the struggling fashion market with its lower-end goods. They also felt it was time for the founder to step down and bring in new blood at the top level. Subsequently, Lauren stepped down as CEO in 2015 and brought in Stefan Larsson (Larsson) who was known for increasing sales at low-end retailers such as, Old Navy and H&M. But Larsson's 'Way Forward Plan' failed to revive the fashion house. In addition to this, a clash with its founder led to the resignation of Larsson in early 2017. In July the same year, Patrice Louvet (Louvet), a veteran of P&G, who had no fashion experience but a boatload of turnaround and branding experience, was brought in as the new CEO. By 2019, Louvet's long term plan for the company's turnaround entitled 'Writing Our Next Great Chapter' was beginning to show results in Europe and Asia, even as the performance in the North American market remained weak. Experts wondered whether Louvet's gambit would change the fortunes of Ralph Lauren.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2019.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Ralph Lauren
Employees:
10000+
Turnover:
USD 6.18 billion (2018)
Type:
Public company
Industry:
Fashion apparel and accessories

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