Retailing and the world of luxury fashion is all aflutter with the appointment of Stefan Larsson as CEO of Ralph Lauren. Larsson came up through fast fashion giant H & M and then went on to get Old Navy back on track. As you know, Lauren built his business with fashion that called to mind Old Wealth which was personified in an upscale preppy way of dress and lifestyle. One could say he took the Brooks Brothers approach, added more of a fashion element, and marketed the fashion with Old World trappings. The price point wasn’t cheap, but it was accessible, compared with the look he imitated. Aspirational luxury. Is it here to stay in fashion, travel and lifestyle in general?
Now this new CEO has a totally different background in new -to- the- brand market segments and comes from the egalitarian Swedish society. One’s first reaction. Can he recreate this aura of luxury lifestyle, albeit updated, which Lauren obviously wanted to do by going with such a radical new hire? Or, as Barbara Thau wrote in Forbes.com, does this mean aspirational luxury is dead so he’s going to take a totally new approach to the brand?
She also ties that in with her contention that conspicuous consumption is a thing of the past. I don’t agree with either premise.
First, conspicuous consumption. As I’ve written about before, during the Great Recession, extravagance was seem as unseemly and, in the hotel business in particular, a serious negative. Companies couldn’t be seem as having luxury trips for executives when the public was suffering financially. But all of that has changed. The elite 1% has no compunctions about spending — the media is filled with stories about extravagance and over the top purchases reflecting the reality of what’s going on out there.
And as for aspirational luxury, I contend that it will always be with us. What will change is what is the desired luxury lifestyle to be emulated. There will always be a “luxury uniform” as Thau called it, though it will change. Instead of rich Mahogany paneled studies filled with antiques and Persian rugs, maybe there will be minimalist Italian furniture that cost five figures, and technology that’s in the same ballpark budget. The clothes? No gold buttoned blazer to be sure, or a fine Egyptian cotton bespoke shirt and custom trousers. How about a t-shirt made from some hard to get hi-tech fabric, a hoodie from the rarest of rare cashmere along with custom sneakers and a Hermes Apple watch? And, a new turn is having fashion reflect one’s individuality and creativity — perhaps the ultimate luxury?
Hotels you say? Much less about baroque palaces from European nobility with Michelin star chefs in formal dining rooms. Think Richard Branson and the kind of hotels he builds and travel experiences that personify the adventurous, innovative lifestyle. Things certainly are a changing. Lauren got that right as he has been so prescient with many other customer aspirations. It will be fascinating to watch.