Market Capitalization Of The World'S Top Men'S Clothing Brand Ralph Lauren

Ralph Lauren has a market value of more than ten billion dollars, and has developed the world's largest high-end men's clothing company in 50 years.

The market generally believes that the positioning of high-end clothing brand ceiling is low, and RalphLauren started with the designer brand, creating a lot of beyond expectations: 1) the scale of income ranked fifth in the American Apparel Industry.

The company's revenues in the 2018 fiscal year are as high as 6 billion 180 million US dollars, exceeding A shares, and all Chinese clothing companies in the United States are ranked only after NIKE, GAP, VF and PVH.

2) the number of outlets worldwide is over 10000.

There are 13330 stores in the global retail and wholesale channels, of which 7132 are in North America.

3) the market share is at the forefront of Europe and America.

RalphLauren accounted for 2.2% of the men's wear market in the United States, ranking eighth, and 0.5% in Western Europe men's clothing market, ranking nineteenth.

To sum up, RalphLauren occupies a relatively good track and develops far more than Zegna, Armani and Burberry brands. It has become the world's largest high-end men's clothing company.

In the early years (1967-1985 years), RalphLauren's precise positioning and portfolio marketing improved brand awareness better.

Looking back at the early history of the brand, we believe that several factors have contributed to its successful creation and rapid development: 1) binding Polo Sport and laying a high foundation.

In 1971, the company launched the classic Polo logo, and set up a better brand positioning with several top sports events.

2) strengthen the brand of the upper class with the help of movies.

In 1974, "the great Gatsby" was released. RalphLauren became a classic three story suite for the film design, making the image of the brand upper class deeper.

3) the image of the store is ingenious.

As early as 70s, the Lauren brand wore a tie, suit, shirt and so on to display together, bringing crutches, antiques and alligator skin luggage into the counters, and displayed the design according to the gentlemen's club style.

During the golden age (fiscal year 1986-2013), the number of stores and store efficiency continued to rise, and the market value stood at a peak of 16 billion dollars.

During this period, the company's operating income maintained a compound annual growth of 12.7%, reaching US $6 billion 860 million.

1) the number of outlets continued to expand.

In fiscal year 1997, the company had about 6000 outlets, and the number of outlets in fiscal 2006 expanded rapidly to 13721.

2) store store efficiency is constantly optimized.

In the 2001-2005 fiscal year, sales of direct and franchise outlets continued to increase.

In the 2006 and 2008 fiscal year, the company cleaned up inefficient outlets for two times, and the error correction mechanism worked smoothly, paving the way for the two growth.

In the 2005 fiscal year to 2013 fiscal years, the company comprehensively promoted the upgrading of "store in store". After the 2007 fiscal year, the investment exceeded 30 million US dollars each year, and realized the image optimization of 20000 stores.

Overseas brands are encountering resistance in China's market development.

1) the international brand system is chaotic.

Take RalphLauren as an example. Since the regional agent started, the brand image of the wholly-owned direct camp has been pushed forward late, and the brand with Polo elements in the Chinese market has emerged in an endless stream, which has greatly disturbed the high-end positioning and identification of its brand.

2) two or three line sinking is progressed slowly.

At present, RalphLauren, Lacoste and Tommy have 65/339/380 stores in China and are concentrated in the second tier cities.

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1, the fifth largest clothing companies in the United States, American leisure benchmarking

1.1 brand introduction: American leisure benchmarking brand

RalphLauren is a representative brand of high-end clothing in the United States and a symbol of American leisure.

The design of the brand is mainly leisure and comfortable, and the fabric is comfortable knitwear as the main material, highlighting elegance, atmosphere and urban atmosphere.

Its Polo (Polo) shirt, with aristocratic Polo logo as its brand logo, not only highlights American leisure, but also brings the elegance of classical aristocrat into design, becoming one of the popular products in the world.

Besides fashion, the company also sells perfume, children's clothing, household products and so on.

Ralph Lauren, the founder and designer of the brand, is an American clothing giant.

Ralph Lauren was born in New York's Eastern European emigrant family, from the urine to dress up very much.

In 1968, Ralph Lauren set up his menswear company PoloFashions and gradually expanded his business to establish his own fashion empire.

In 1976, Ralph Lauren became the first designer to win two Coty awards for men and women. He won the CFDA Lifetime Achievement Award in 1992. He was selected by Forbes as the 233rd richest person in the world in 2016. He became the richest fashion in the United States by earning 5 billion 500 million dollars. In 2018, CFDA paid tribute to him for his great contribution to the fashion industry.

By the end of 18, 3 months ago, Ralph Lauren and his family had the right to vote in common stock of RalphLauren company 82%.

Ralph Lauren company has more than 10 brands, each brand has its own unique style and positioning, the overall coverage of the clothing, accessories, home, perfume, restaurants, five categories.

RLCollection, purple label and Double RL are their high-end luxury brands, providing tailored dress, suits and other costumes and accessories for buyers.

LaurenRL is its popular clothing brand, with many categories and more acceptable price.

The rich brand and category meet the fine differentiation and differential demand of different levels of consumers. The brand is coordinated, misplaced competition and expanding market space.

The market value of US $12 billion ranked the fifth largest clothing company in the United States.

Ralph Lauren is the top ten clothing companies in the United States.

1) in terms of income and market value, the 2017/18 fiscal year income and current market value are ranked sixth and fifth of the US listed apparel companies respectively.

In fiscal year 2018, RalphLauren achieved operating income of US $6 billion 180 million and net profit of US $480 million.

In the vertical comparison, Nike company ranked first in the apparel industry listed companies with the market value of 132 billion 300 million US dollars and the income of 36 billion 400 million US dollars. The VF group with Timberland, Lee and other brands had a market capitalization of 36 billion 400 million US dollars, earning 12 billion 400 million US dollars, ranking second in the industry.

RalphLauren ranked fifth in US apparel companies with us $6 billion 200 million revenue and US $11 billion 200 million market capitalization.

2) in terms of market share, the company ranks eighth in the men's wear market in the United States and nineteenth in the Western European men's wear market.

According to Euromonitor's data, RalphLauren accounted for 2.2% of the men's clothing market in the United States, ranking eighth, and 0.5% in Western Europe men's clothing market, ranking nineteenth.

Generally speaking, sports and fast wear are the two largest market share of men's clothing market in the United States and Western Europe due to their wide audience and high consumption characteristics.

Compared with other high-end clothing brands, the market share of RalphLauren is very impressive.

3) from the number of stores, the number of retail outlets and wholesale outlets in the world reaches 13330 and the number of stores in North America is 7132.

RalphLauren has a large network of stores in Europe and North America, and relatively cautious in Asia. But in 2017, RalphLauren began to view the Chinese market as an important expansion target.

As of March 31, 2018, the number of RalphLauren shops reached 13330, and the number of shops in North America and Europe reached more than 90%.

2, the history of brand development: 50 years to create a global fashion empire.

In 2018, the establishment of Ralph Lauren was 50th anniversary. We reviewed the history of the company and divided the development process into three stages.

1) initial stage (1967-1985 years): during this period, the company's classic Polo LOGO appeared, and accurately established its leisure style and high-end design positioning, and the brand gradually developed and expanded.

2) mature period (-2013 fiscal year 1986): the flagship store of Madison Avenue opened in Europe, and the stores in Europe successively developed from designer brand to large clothing company and landed on the New York stock exchange.

In fiscal year 2013, the number of stores reached 13721.

3) stagnation and adjustment period (from fiscal year 2014 to the present): the growth of business efficiency and number growth of companies are facing bottlenecks, and the scale of revenue has declined.

The 2.1 empire was founded (1967-1985 years): design brand started, Polo logo first appeared.

Reverse trend, innovation, tie up and build fashion empire.

In 1967, Ralph Lauren served as a necktie designer in the BeauBrummel brand. He made bold innovations in the neckties, not only two times the width, but also brighter and colourful.

Although his innovative design was contrary to the prevailing aesthetics at that time, he achieved great success. His tie was hot and brought the prevailing trend of fashion at that time.

The next year, Lauren set up his menswear company PoloFashions and gradually expanded his business to establish his own fashion empire.

Looking back at the early history of brands, we believe that several factors have contributed to the successful establishment of brands.

2.1.1 bound polo sport, laying a high end foundation.

In 1971, RalphLauren launched the classic Polo logo.

Before that, Polo was a high-end niche sport. Its clothing was mainly used for professional or amateur sporting events. Several major brands of POLO sportswear, such as high-end sports and casual wear, included:

1) Booker (BrooksBrothers) was born in the United States in 1818.

The brand is the representative of ivy elite culture. It has been gradually favored by more than 30 presidents from the beginning of President Lincoln's second inaugural speech.

RalphLauren had worked as a salesperson in the flagship store of Booker brothers Madison street in early years, and bought the naming right of POLO shirt products from his old family after starting his business.

2) U.S. POLO ASSN., founded in 1890.

The brand was established by the US Polo Association, a wholly owned subsidiary of the Polo Association, and was founded much earlier than the RalphLauren brand.

3) Lacoste (crocodile), launched in 1933.

Its founder, Ren e Lacoste, is the French tennis champion, nicknamed "crocodile".

Lacoste designed and ordered people to sew a number of breathable comfortable knitted cotton shirts, using light breathable small convex mesh fabric, and soon this shirt launched a revolution among tennis players, replacing the traditional long sleeved Jersey.

In 1933, Ren e Lacoste, in collaboration with the famous knitted fabric manufacturer Andr E. Gillier, began mass production of a crotch marked turnout sweater.

Ralph Lauren's early brand image was very successful, with the "polo" campaign to lay the high end foundation.

Polo is a very high-end sport. Generally, a polo horse with moderate athletic ability costs about 350 thousand yuan. The top polo horse price is RMB 200-400 yuan, plus the cost of horse breeding, loss, pportation and so on. Polo fans spend 500-1000 yuan annually.

The early Ralph Lauren brand made a better brand image on the consumer level by means of polo LOGO.

Sponsoring top sports events, strengthening brand exposure and enhancing brand reputation.

Since 2005, RalphLauren has been working with several top sports events, which has greatly promoted the marketing and promotion of its sports products.

In 2005 and 2006, RalphLauren co operated with the US Tennis Open and Wimbledon Tennis Championships in the four Grand Slam, becoming its official clothing sponsor.

In 08-16, RalphLauren became the official sponsorship brand of the three summer Olympic Games.

In 2011, it became the largest supplier of apparel in the US Open golf tournament.

2.1.2 combined marketing to strengthen the "upper class lifestyle" label

Strengthen the label of "upper class lifestyle" to stimulate consumers' lifestyle advocated by brands.

In addition to sponsoring sports events, Ralph Lauren pioneered the use of experience marketing and multiple brand management strategies to continuously strengthen brand positioning:

1) design the costumes for the great Gatsby and set the classic upper class brand.

In 1974, the remake of the great Gatsby was released, and RalphLauren designed costumes for the movie.

The great Gatsby is a landmark masterpiece with far-reaching influence in the history of American literature. It ranks second in the hundred hundred English novels in the twentieth Century.

RalphLauren has starred Robert in a very classic pink suit of three pieces in the history of the movie. The film has won two awards for best costume design and best music score in the 47 Oscar (1974), making the brand and RalphLauren designer's brand image of the upper class more popular.

2) store image and product category to create a high-end atmosphere.

As early as 70s, the Raven Lauren brand put together ties, suits, shirts and so on, and decorated the cabinet with mahogany as a gentlemen's club.

Later, the Ralph Lauren brand brought crutches, antiques and alligator trunk into the counters. The whole scene looked like the living environment of the rich in the upper class, and the brand became a symbol of status, wealth and privilege.

2.1.3 multi-layered, rich categories, attracting consumers at all levels.

During the 1971-1985 years, the category continued to enrich and expand the territory to enter the European market.

In 1971, the company's first authorized franchised store and the first shopping boutique were opened in Beverly Hills and New York.

Over the past 72-83 years, the company has launched many categories such as footwear, children's wear, perfume and home.

In 1981, RalphLauren opened its first store in London, and officially entered the European market.

Category segmentation, brand differentiation pricing, attracting multi-level consumers.

For luxury brand manufacturers, how to attract consumers as much as possible without damaging the brand image is a difficult problem.

RalphLauren enables the high-end brand to permeate the public life by setting up multi product lines and layered pricing.

In its development history, Ralph Lauren has operated more than 25 brands, the lowest end product line PoloJean product price is below $100, the most high-end product line purple standard suit coat is all above $2000, the product line's multi-storey division makes its audience customer base increasing day by day.

2.2 golden age (fiscal year 1986-2013): flagship store opened successfully, and thirteen thousand outlets broke through.

In 1986, the flagship store of Madison Avenue opened in New York, and began to accelerate growth.

The great success of the start-up stage has been the driving force for the company's continued expansion. In 1986, RalphLauren's first flagship store opened in Madison Avenue, New York.

Madison Avenue, New York, has more than 150 luxury stores in parallel with the famous Fifth Avenue.

The opening of RalphLauren flagship store marks its successful expansion from niche designer brand to high-end casual wear.

Listed on the NYSE successfully in 1997, the company continued to expand horizontally to enrich the category.

In 90s, the company focused on the vertical deepening of clothing categories.

In 1990, PoloGolf men and women wear series appeared, 93 years and 94 years Polo Sport and DoubleRL were launched.

In the 95 and 96 years, the company launched the high-end Purple Label Series and positioned the cowboy series in the mass market. The first Ralph Lauren restaurant opened in Chicago in 1999.

From the 1995 fiscal year to the 2012 fiscal year, the company's business revenue increased by 5.8 times, maintaining a 11.2% annual compound growth rate.

In the 1995 fiscal year, the company's operating income was $1 billion 20 million, and the company's revenue reached US $6 billion 950 million in fiscal 2012.

During this period, the continuous expansion of the company's momentum was very strong. Besides the 2010 fiscal year, the report revenue maintained an upward trend, but there were also some strategic changes during the period.

2.2.1 retail and wholesale channels expand alternately (fiscal year 1998-2006)

After the listing, the company store has entered a new high-speed expansion period.

In the 1998-2006 fiscal year, the number of retail outlets and wholesale channels increased, and the number of stores increased. In the 2006 fiscal year, the total number of stores reached 13721.

The company's main business is divided into three formats: 1) direct retail sales, self opening stores for sale, mainly flagship stores and OLE stores; 2) wholesale sales, the company sells products to affiliate outlets, then the main outlets are Messi's department stores, and department stores around the world sell them in their stores.

3) authorized operation.

The driving factors of the company's overall revenue growth during this period can be divided into four stages.

1) expansion of retail outlets to promote growth (before fiscal 2000).

In fiscal year 1997, the company had 95 retail outlets and expanded to 229 in fiscal 2000.

We reckon that the retail revenue of retail outlets in fiscal year 2000 is US $3 million 690 thousand, which is much higher than that of wholesale outlets of US $140 thousand. Therefore, although the absolute number of outlets is relatively small, it has greatly promoted overall growth.

From 1997 to fiscal year 2000, the revenue of the company's retail channel increased from US $380 million to US $830 million, and the annual compound growth rate reached 30%, which accounted for 32% of the total revenue of the company from 43% to 43%.

2) increase in store efficiency to boost revenue growth (fiscal year 2001-2005).

During this period, the expansion of the total number of stores was limited, but the store opened earlier, and the efficiency of the shop was improved continuously.

In terms of franchising channels, store revenue increased by 24 and 11% in 2001 and 2002 respectively. In terms of direct channel, 2004 and 2005 sales increased 13% and 9%.

3) expansion of affiliate outlets to promote growth (fiscal year 2005-2006).

In the 2005 and 2006 fiscal year, the number of companies joining the network expanded to the peak of the previous years, with a net expansion of 2517 and 2148 respectively, with the growth rate of 28.9% and 19.1% respectively.

In the first quarter of 2006, the total number of stores reached 13358, and then it didn't break through until the 2016 fiscal year.

2.2.2 clean up inefficient outlets, upgrade stores and optimize image (fiscal year 2007-2013)

In the 2007 fiscal year, the company began to adjust and clean up wholesale outlets to enhance brand image and production efficiency.

2006 at the end of the fiscal year, the number of stores reached the peak, and the number of stores reached 13721. The number of outlets only reached 13358.

With the rapid expansion of network size, a large number of inefficient channels have been accumulated.

In the 2007 fiscal year, in order to maintain brand image and enhance product quality, and at the same time improve the discount rate of overall sales, the company began to promote store clearance.

The 2007 and 2009 fiscal year are the two peaks of the company's clean-up network, which closed 2715 and 4709 inefficient wholesale outlets respectively.

The two large-scale clearance has achieved good results. The company's revenue growth has not been affected, and the average store efficiency has been greatly improved.

2007 fiscal year: closing 2715 wholesale outlets (-20.3%), the company's wholesale revenue grew by 370 million US dollars (+19.2%).

Excluding the two new businesses of the new year and the fluctuation of the reporting level contributed by the euro appreciation, the revenue increased by US $160 million (+8.0%).

As we cleaned up a lot of inefficient outlets in that year, we calculated that the average operating income of those outlets increased by 49.6%.

2009 fiscal year: closing 4709 wholesale outlets (-43.6%), the company's wholesale revenue grew by 20 million US dollars (+1.2%).

As we cleaned up a lot of inefficient outlets in that year, we calculated that the average operating income of those outlets increased by 85.5%.

While cleaning up the outlets, the company continued to invest a lot in upgrading the image of the store.

Most of the wholesale outlets of the company are located in channels of department stores. In the early twenty-first Century, the department stores in the United States had a rather old business format, and clothing brands rarely had independent facades in department stores. The format usually consisted of several brands of the same kind of products (such as men's suits, POLO shirts, etc.), which were concentrated on the same shelf, or a single brand displayed on the adjacent shelves.

RalphLauren takes the lead in promoting the construction of shop-within-shops in department stores. The listed companies jointly invest with the department stores in decorating a region, which is specially used for brand marketing.

In 2004 -2013, the number of stores in the shop increased from 2480 to 20000. After 2007, it invested more than $30 million a year to upgrade and decorate, which greatly improved brand tonality and made a sharp contrast with other scattered sales of clothing brands.

Upgrading the image of the store promotes the growth of the same store.

According to the company statistics, in the 2005 fiscal year to the 2013 fiscal year, the company's comparable direct retail stores maintained positive growth in addition to the financial crisis in the 2009 fiscal year, even up to 14% in the 2012 fiscal year.

2.2.3 overseas market: Europe accounts for about 20%, and Asia is gradually contributing.

Europe is the largest overseas market of Ralph Lauren, and its share of revenue has been maintained at around 20% for a long time.

With the start of the fiscal year 2006, the revenue growth in Europe has exceeded 22% in the US and maintained steady growth. In the 9 fiscal year of 03-12, the composite growth rate was 13.9%, and the operating income in the 2012 fiscal year was 1 billion 490 million US dollars.

Asian layout is relatively late, but its importance is gradually emerging.

RalphLauren is relatively late in Asia. In the 2006 fiscal year, the first flagship store in Tokyo marked the introduction of the east coast lifestyle brand into Asia.

From the 2007 fiscal year to the 12 fiscal year, Asia's income has maintained rapid growth, and the proportion of regional income has increased to 14.1%.

Regional agents turn to wholly-owned operations to help expand overseas.

In order to accelerate overseas expansion and strengthen brand control, RalphLauren has acquired many agents and related stores in the United States, Europe, Asia, Australia and other regions, and turned them into wholly-owned operations.

For example, in 00 years, it bought Poloco, an agent of many brands in Europe, bought footwear business from Reebok in 05 years, began to contract Japan's agency business in 03 years, reorganized the Asia Pacific market in 11 years, acquired the agency power of China and Korea, and began to clean up inefficient stores.

2.3 bottlenecks and changes (2013 fiscal year to date)

The growth rate of income slowed down, and the decline in North America was obvious, and the recovery in the 18 fiscal year was reversed.

12 fiscal year, the company's revenue growth fell to single digit, 15 year -18 fiscal year revenue continued to decline, showing a negative growth trend.

Although the revenue growth in Europe and Asia slowed down, it still maintained a relatively steady growth trend, but the income of North America was obviously declining in the last two years, and the three year income growth rate of the 2018 fiscal year was -14.6%, 2.7% and 5.8% respectively.

In fiscal year 19, Q1's revenue rebounded slightly, up 3.2% over the same period.

The founder resigned, the professional manager was in place, and the strategic reorganization entered the adjustment period.

In 2015, after three consecutive years of double-digit growth in revenue and the first decline, it launched the GlobalReorganization Plan to cope with the decline in performance. In the same year, Lauren left CEO and hired H&M and former Gap President StefanLarsson as the new CEO.

After taking office, Larsson began to carry out vigorous and vigorous reforms, implemented massive layoffs, closed stores, and streamlined the brand. However, due to the lack of improvement in performance and its business philosophy and RalphLauren to the left, the 17 year Larsson left office and was succeeded by Patrice Louvet, former president of Procter & gamble.

Patrice Louvet launched the Way ForwardPlan after taking office. It mainly reforms from four aspects: enhancing brand image and positioning, conducting creative marketing and improving shopping experience, increasing investment in digitalization and globalization, and improving the productivity and flexibility of the supply chain through high-tech sales, distribution and product quality.

The company expects that the strategic adjustment of the "forward plan" will lead to a restructuring cost of about $870 million. Although the pain of reform is undergoing, the recovery of the first quarter of fiscal year 19 has also affirmed the direction of its reform to a certain extent.

With the adjustment of wholesale business channels, shops in Asia are still accelerating.

Strategic restructuring led directly to a large number of Customs adjustment, slowed down the development of stores, and the total number of stores in fiscal 17 and fiscal year 18 declined, closing 431 and 807 outlets respectively, mainly due to the liquidation of wholesalers' stores.

From the point of view of store type, retail outlets continue to grow steadily, although the growth rate is declining.

From the perspective of regional distribution, Europe and the United States all closed down. In the 2016 fiscal year, the US market closed 723 outlets. In fiscal 2018, the United States closed 170 outlets and closed 762 outlets in Europe.

The expansion of Asian stores is accelerating and is expected to become the focus of market expansion in the coming years.

3. Financial analysis and market capitalization

3.1 profitability: net interest rate stability is about 10%, which has fluctuated in recent years.

In terms of profitability, the net interest rate at the initial stage of the listing fluctuated, and it stabilized in the 2002-2013 fiscal year.

The profitability of clothing companies at the reporting level is often greatly disturbed by the proportion of direct business / franchise. The profitability of the two formats is quite different.

After the listing of the company, the company continued to expand its direct business channels for many years. In the 1995 fiscal year, the proportion of gross profit retail business revenue was 29.5%, and it increased to 53.1% in the 2016 fiscal year.

At the operational level, the expansion of Direct stores expands the brand strength of the company, so that the company's control over terminal channels continues to improve.

The financial implications are:

1) gross margin is rising.

From 1995 fiscal year to 2018 fiscal year, the gross profit margin of the company increased from 43.9% to 60.1%, and the direct mode of high margin led to an overall increase in gross margin.

2) the overall operating profit margin is stable.

Under the direct camp mode, the company takes on the operation cost of the stores, and the performance elasticity of the revenue growth is limited; the operating profit rate of the wholesale mode continues to rise, from 7% in fiscal year 1999 to 24.9% in fiscal 2016.

On the whole, the proportion of direct operating business profits with smaller elasticity of performance has been rising. The overall operating profit of the company has stabilized at about 25% in 2005-2014 years, and net interest rate has stabilized at about 10% level.

In the 2014 fiscal year, the company's operating profit margin continued to decline, and there was a loss in the 2017 fiscal year.

This trend is mainly driven by the downward trend of the operating profit margin of the direct camp mode in the 2014 fiscal year.

1) the discount rate has declined and the gross profit margin has declined.

In the 2014 and 2015 fiscal year, the gross profit margin of direct business decreased by 1.1pct and less than 0.4pct, and the discount rate of the direct system decreased.

2) promote pformation, restructuring and cost increase.

In fiscal year 2016, the company spent $140 million on the Global ReorganizationPlan.

In fiscal year 2017, the company spent $720 million on Way Forward Plan.

3.2 operating capacity: good stock turnover and strong bargaining power.

The company has strong inventory management capability and turnover rate is at a relatively high level for a long time.

The inventory turnover rate of the company increased continuously after the listing, reaching 4.5 levels in fiscal year 2009.

After the 2009 fiscal year, due to the further improvement of the retail business share, the share of the company's inventory increased and inventory turnover decreased.

In fiscal year 2016, when the retail business accounted for 53% of the revenue, the inventory turnover rate was 3 times, reflecting the company's good inventory management capability and dynamic sales.

Accounts receivable and accounts payable turnover has increased significantly since the 2000 fiscal year.

The number of suppliers is from 310 in 00 years to more than 700 in 12 years, and the proportion of the largest suppliers has decreased from 12% to 4%. The overall scale of the company has been expanding continuously, and the company's procurement has gradually dispersed and bargaining power has weakened, bringing about a continuous increase in the turnover rate of accounts payable.

In terms of distributors, the size of the network has been expanding, and the bargaining power of the company has been increasing. The turnover rate of accounts receivable has been continuously strengthened since the 2004 fiscal year.

3.3 market value change: peak value of $16 billion, historical valuation interval of 10-20x

In the first round of steady growth period, the average valuation level is about 14.5 times.

1998 fiscal year -2007 fiscal year (1997 Q1-2006 Q1), the company's operating income increased from $1 billion 450 million to $4 billion 300 million, the annual compound growth rate of 12.6%.

Net profit increased from 150 million US dollars to US $400 million and the annual compound growth rate was 11.7%.

During this period, the overall PE valuation of the company was about 15 times. The market value of the company was several times higher in the end of 2000, in the middle of 2004 and in the middle of 2007.

After the financial crisis, the market value of the company stood at the peak of 16 billion US dollars.

Through two rounds of adjustment in the 2007 and 2009 fiscal year, the company cleaned up inefficient stores better, and constantly promoted store decoration, upgraded the retail system in an all-round way, and achieved a certain resumption of growth since the 2011 fiscal year -2015 fiscal year.

During this period, the company's operating income increased from $4 billion 880 million to US $7 billion 620 million, the annual compound growth rate was 8.9%, net profit increased from 310 million US dollars to US $700 million, the annual compound growth rate was 7.9%, and the average PE level was about 18.7 times.

The market value of the company stood at a record high of two times in the first quarter of 2012 and the end of 2014, exceeding 16 billion US dollars.

4, Ralph Lauren in China: obstruction and development synchronization

4.1 expand history: slow development and focus on the Chinese market.

Regional agents start and brand management is chaotic.

In 1983, Hongkong Dickson Concepts became the agent of RalphLauren brand in Asia. In 90s of last century, Dickson opened its first store in Jinjiang Disheng commercial building in Huaihailu Road, Shanghai, and officially introduced it into the mainland of China.

However, the development of RalphLauren brand in China is not smooth. The problems such as poor location, frequent discount activities, over introducing low-end product lines, ignoring marketing and customer relationship, and counterfeit goods like Shanzhai have greatly damaged the high-end image of the brand.

The right of agency is recovered and the brand image is rebuilt wholly.

In 2009, the company withdrew Dickson's dealership and closed all its stores.

In 2010, the company's first direct store in mainland China came to Shanghai The Peninsula Hotel boutique Gallery, adjacent to Chanel and Prada.

In 2012, the company opened shop in Shenyang city hall and Shanghai Rui department store respectively.

According to the official website store, as of now, the company has 64 stores in the mainland of China.

In order to enhance the brand image, the main product of the new store has shifted from the PoloRalph Lauren brand positioning to the Purple Label brand of luxury goods.

Focus on the Chinese market, electricity supplier channels ahead.

In the context of the slow growth in the US and Europe and the rapid development of the Asian market, RalphLauren has gradually strengthened its attention to the Asian market, especially the Chinese market.

In 2017, RL landed on Tmall and Jingdong e-commerce platform, and increased advertising on WeChat, 18 years on-line WeChat small program.

In 2018, when the company was founded 50 years ago, it unveiled China's first official online flagship store. Its products cover the classic Polo brand, including the purple and collection two luxury product lines, providing consumers with the most high-end and the most pure brand experience in China.

4.2 brand dilemma: similar elements emerge one after another, brand maintenance is mixed.

There are many brands of polo elements in China's clothing market.

RalphLauren's store in China is cautious, but the brand and stores that contain Polo elements are common in domestic streets and lanes.

Overall, the quality of some brands with Polo elements is uneven, the pricing system of products is chaotic, and there are differences in store decoration and after-sales service.

It is difficult for consumers to distinguish between brands by brand names, which objectively reduces the image of some high-end brands such as RalphLauren.

The image is rebuilt and blocked, and China's legal rights in the market are progressively promoted.

As Ralph Lauren Corp took over the operation of the Chinese market, the company launched the brand rights protection process.

For example, in 2018, the company reached an agreement with Shanghai Pang Gong and Harbin Shanshan company, and the above companies stopped infringing upon the trademark rights of the company.

4.3 competition pattern: the top four brands of China's high-end casual wear market

China's high-end casual wear market is huge, and high quality high-end brands are scarce.

According to Chi Yan consulting, the overall size of China's adult casual wear market in 2016 is about $642 billion 500 million, of which high-end leisure wear accounts for about 12% of the total scale and the market size exceeds 70 billion yuan.

Among them, the number of high-end brands with positioning movement and fashion is limited, mainly including the voice of RalphLauren (Polo), Lacoste (tennis image), Tommy Hilfiger and so on.

In this part, we analyze the market pattern by comparing the distribution and price of stores.

4.3.1 focuses on sports and leisure, with similar categories and different styles.

Lacoste originated in tennis, and its product is "sports + fashion" style, which is a brand of French lifestyle that passes elegantly and comfortably.

Founded in 1933, the French Lacoste company has been widely recognized and loved by the market for its design and production of comfortable and breathable tennis knitted tennis shirts.

Since its inception, the Lascote brand has always adhered to the "sport + fashion" style and extended its product line to other sports apparel and business dress areas, covering men's wear, women's wear and children's wear.

Lacoste's clothing style is rich and its color is changeable. It conveys the brand concept of comfort, elegance and self-confidence.

Tommy Hilfiger is famous for its natural and concise American style. Its product design permeates youth vitality, covering sports, leisure, business and other fields.

In 1985, American designer TommyHilfiger launched its own fashion brand.

Tommy brand advocates natural and concise fashion, and its design idea is permeated with the vitality and vigor of youth, and has a strong American style. At the early stage of its brand establishment, it was loved by the younger generation of Americans and quickly occupied the fashion market.

TommyHilfiger has many sub brands, which cover sports, leisure, business, vacation and other fields.

It is focused on golf series and life casual series, positioning "three high one new".

It was founded in 2003. The main brand product line mainly includes two categories: professional golf series and life leisure series, focusing on sports and leisure market segments.

The professional sports series mainly highlights the functionality and comfort of clothing, and the leisure life series fully combines the comfort and fashion of sportswear, emphasizing "natural comfort, healthy leisure".

The target group is golf enthusiasts and middle class consumers who agree with golf culture and dress styles.

4.3.2 price discrepancy is limited, and international brand stores are sinking slowly.

The overall price of the four brands is similar, higher than that of Ralph and Lauren.

Judging from the pricing of competing products in China, the price of Ralph Lauren's terminal brand PoloRalph Lauren is in the same range as other brands, and its main category is more similar to competing products.

Further subdivision, Polo RalphLauren is best at shirts and Polo shirts priced at two categories slightly higher than other brands, but jacket and down clothing two categories of prices are slightly lower than other brands.

The price of brevien spring summer suit is slightly lower than that of Polo RalphLauren, and the price of winter clothing is higher.

We have counted the distribution of three overseas brands in the Chinese market, and the store data provided by Ralph Lauren and its rival brand official website.

Ralph Lauren store development is slow, stores only concentrated in the first and second tier cities.

Since RalphLauren began to deploy the Chinese market in the form of direct marketing in 2010, the number of stores is far less than that of other brands.

Up to now, RalphLauren has 64 stores in the whole country, covering 23 first-line and second tier economically developed cities.

Specifically, Beijing and Shanghai in the first tier cities are their key stores, and they have 13 stores respectively.

Second tier cities in Chengdu and Hangzhou, respectively, the layout of 5 and 4 stores.

Lacoste stores are more and more widely distributed.

Up to now, Lacoste has 339 stores in the country, covering 111 cities.

Stores are mainly concentrated in the first and second tier cities, but there are three lines and cities below.

Subdivision, Beijing and Shanghai are the most important layout areas of Lacoste, with 36 and 39 stores respectively.

In the second tier cities, Hangzhou, Chengdu and Nanjing are the key areas of expansion, with more than 10 stores.

Up to now, TommyHilfiger has 380 stores in China, covering 108 cities, with the largest number of stores and the most extensive coverage in similar competitive brands.

Tommy stores are mainly concentrated in the first and second tier cities, but there are three lines and cities below.

Subdivision, Beijing and Shanghai are the most important layout areas, with 29 and 32 stores respectively.

In the second tier cities, Hangzhou, Chengdu and Chongqing are the key areas to enter, and they have more than 10 stores.