Ralph Lauren has become a "bundle purchase 神器"
Ralph Lauren became a "shopping cart 神器" for consumers during the Double 11 period, with GMV exceeding 2 billion, but the return rate reached as high as 95%. Consumers quickly applied for refunds after reaching the threshold for discounts using its high-priced products, leading to increased operational costs for the brand. Although insiders at Alibaba claimed that the return rate data was inaccurate, the phenomenon of consumers using Ralph Lauren products to meet spending thresholds still exists, and previously, Burberry also faced a similar situation
Author | Zheng Qiao
Editor | Wang Xiaojuan
Unexpectedly, Ralph Lauren, the representative of old money style that has swept the globe in recent years and the originator of the polo shirt, has surprisingly become a tool for order fulfillment.
Information obtained by Wall Street News shows that during the Double 11 shopping festival on Taobao and Tmall, the American fashion brand Ralph Lauren suddenly "exploded" with orders, with GMV exceeding 2 billion.
However, at the same time, there are reports that the return rate for Ralph Lauren is as high as 95%. A large amount of GMV is not actual consumption but is used as a "tool" for order fulfillment.
So far, neither Ralph Lauren nor Tmall has directly responded to this. An insider from Alibaba stated that the flagship store of Ralph Lauren performed very well during Double 11, and the so-called "high return rate" figures are purely rumors.
However, the fact that Ralph Lauren is being used for order fulfillment does indeed exist.
To meet the threshold for discounts, consumers often choose to add some high-priced items, and Ralph Lauren is among them. Once the overall discount is enjoyed, the added items can be immediately refunded through the "seven-day no-reason refund" policy, allowing the actual purchased items to be obtained at a lower price.
What was initially thought to be a sudden windfall turned out to be just a fleeting illusion.
However, it is not surprising that Ralph Lauren was chosen; it perfectly meets the conditions for order fulfillment: it participates in the 88VIP large consumption coupon discount activity but does not participate in the 300-50 discount activity, making it easier for consumers to calculate; and once the total amount is paid, consumers can immediately apply for a refund, which is credited instantly.
Many well-known brands have had experiences of being used for order fulfillment to varying degrees. Previously, Burberry also had to take some products off the shelves due to being used for order fulfillment.
Wall Street News has learned that this is not the first time Ralph Lauren has been concentrated for order fulfillment; it was also used as a fulfillment partner during last year's 618 shopping festival.
For consumers, it is understandable to purchase products at the lowest cost within the rules set by the platform, but for brands like Ralph Lauren that are being used for order fulfillment, it clearly increases certain operational costs.
An e-commerce industry practitioner revealed: "In previous large promotional events, Ralph Lauren has also been used for order fulfillment, and it requires customer service to process only refunds, which can affect inventory turnover."
Some netizens jokingly said that this incident is not entirely without benefits for Ralph Lauren; although it did not gain huge wealth, it attracted significant traffic.
However, Ralph Lauren does not seem to lack traffic. In recent years, it has been regarded as one of the "three treasures of the middle class" alongside Arc'teryx and Lululemon, and has received favor from many public figures.
Stars like Anne Hathaway, Ouyang Nana, and Yu Shuxin are all "wild ambassadors" for Ralph Lauren, and Ralph Lauren appears in their shared casual outfits, bringing the brand high exposure and attention Even amidst the fervor of the U.S. elections, photos of Donald Trump's son Barron Trump wearing Ralph Lauren have been widely circulated on social media, with some netizens calling Barron a "Ralph Lauren boy from childhood to adulthood."
The "old money style" created by Ralph Lauren is deeply ingrained in people's minds, partly due to its frequent appearances on screen. Over the past few years, Ralph Lauren has often been associated with upper-class elites on screen, and many classic images have become iconic in the minds of consumers.
In the TV series "Gossip Girl," many dialogue scenes take place in Ralph Lauren's stores, becoming a part of the characters' social lives; while in "Succession," almost every character wears Ralph Lauren.
Additionally, Ralph Lauren designed costumes for the movie "The Great Gatsby," particularly the pink three-piece suit for Robert Redford's portrayal of Gatsby, which has become a classic scene in film history and further entrenched the notion that "wearing Ralph Lauren signifies integration into high society."
Despite being caught in the whirlpool of being a secondary choice, Ralph Lauren seems to have remained unaffected by consumers' more cautious spending, continuing to grow.
Recently, Ralph Lauren's second-quarter financial report for fiscal year 2025 showed that its net revenue was $1.7 billion, a year-on-year increase of 6%; adjusted operating profit was $197 million, with a profit margin rising to 11.4%; and net profit was $148 million, slightly higher than $147 million in the same period last year.
According to LadyMax, the second-quarter revenue growth of 6% was mainly driven by the European and Asian markets, especially with a 10% increase in the Asian market. This is particularly remarkable given that many luxury and high-end beauty brands are losing growth.
The "Global Luxury Market Research Report" jointly released by Bain & Company and the Italian luxury goods manufacturing industry association Altagamma shows that amidst weak demand, wealthy individuals in China are avoiding ostentation and opting for more understated luxury brands.
Ralph Lauren is one of the selected brands. Previously, Ralph Lauren executives stated in a conference call that China is one of the fastest-growing markets.
However, there are many brands currently imitating Ralph Lauren in the market. The popularity of counterfeit goods not only divides its original market share but also damages Ralph Lauren's brand image. Many unsuspecting consumers only realize after purchase that what they bought is not genuine Ralph Lauren, but rather products from other brands that resemble its logo.
A part-time Ralph Lauren employee told Wall Street Insight that, in her view, Ralph Lauren's current brand positioning is not clear enough. For example, many consumers find it difficult to distinguish between the Black Label, Purple Label, and Blue Label series. At the same time, the price range of products is quite large, with low-end Polo shirts available for just a few hundred yuan, while high-end Polo shirts can cost several thousand yuan Ralph Lauren has indeed won a certain market share with its classic old-money style; however, fashion is cyclical. Under the hunt of many alternatives and emerging quiet luxury brands like The Row, how long Ralph Lauren's growth can be sustained and how it can continuously provide freshness to users in a constantly changing market are challenges it must face