The ‘Ralph Lauren Christmas’ trend is marketing gold

If you’ve been scrolling through social media lately, you won’t have escaped the plaid trimmings, pine garlands, and rich red ribbons, all warmed by the glow of a roaring fire.

Welcome to “Ralph Lauren Christmas.” The aesthetic, which demonstrates how to create Ralph Lauren Corp.’s signature style for the holidays, has been trending recently, sending the brand’s visibility soaring.

This viral moment has been years in the making. Ralph Lauren has been polishing its image and honing its product range for the best part of a decade. And luck has been on its side, with the company squarely in the intersection of several fortunate trends.

Preppy style is having a major fashion moment and Ralph Lauren is the look, thanks to its traditional staples such as cable-knit sweaters, blazers, and rugby shirts. Even the quarter zip craze, which heralds a return to more sophisticated casual dressing, is contributing to the brand’s popularity, Laurent Vasilescu, analyst at BNP Paribas SA, wrote in a recent note.

Social media narratives take inspiration not just from how we dress but also how we feel. In uncertain times- particularly over the holidays- we often take comfort from the traditions of the past. Add in the old money vibe of quiet luxury, which might be in its final throes of popularity but refuses to disappear, and searches for “Ralph Lauren inspired Christmas” on Pinterest are up 3,000% in the four weeks to November 15 compared with the year earlier. 

So, how did the company position itself for this moment in the viral sun? Under chief executive officer Patrice Louvet, who took the reins in 2017- and of course its eponymous founder, who remains actively involved- Ralph Lauren has moved closer to the European luxury houses such as LVMH Moet Hennessy Louis Vuitton SE. It’s done so by taking its image upmarket and cutting back on selling through less chichi retailers. Even its outlet stores, which play an important but undisclosed role in the business, have undergone a glow up.

As part of this strategy, Ralph Lauren has invested in its core stores- where its particular holiday look is very much in evidence- and concentrated on the products it is best known for. The timing has been fortuitous: the brand is looking both luxe and accessible even as European rivals have aggressively increased prices.

The turnaround has been augmented by effective marketing, such as taking its Polo Bear from merchandise to the big screen, with the mascot’s first animated film. And through its cafes and restaurants, the brand has been at the forefront of luxury’s push into hospitality.

While Ralph Lauren Christmas grew organically, the company has encouraged an association with the season. This includes  holiday pop-ups in Seoul, Tokyo, Los Angeles, and London, where in Sloane Square visitors can sip hot chocolate, buy a holiday gift, make a seasonal floral display, or visit Santa’s grotto. 

The queues for selfies by the vintage red pick-up truck- with some sporting the signature Polo Bear sweater- underline Ralph Lauren’s marketing genius. The founder himself is Jewish, born Ralph Lifshitz in the Bronx. Yet his ability to draw people from all walks of life into his particular vision of the American dream has made his company as much a Christmas staple as eggnog and It’s a Wonderful Life. And it’s worth noting that he’s done so by embracing rather than ignoring the country’s diversity. For an example, look to the retailer’s 2022 collaboration with two historically Black colleges, which continued this year with a collection celebrating Oak Bluffs, a town on Martha’s Vineyard that is a summer haven for Black Americans.

Ralph Lauren isn’t the only one to benefit from the Christmas trend, according to retail intelligence company Edited. Styles featuring a palette of red, burgundy, and green, punctuated by hints of gold, as well as tartans and teddy bear motifs are appearing in chains on both sides of the Atlantic. Vans, for example, has gone big on plaid. Some social media posts show how to get the look for less at the likes of Amazon.com Inc. At the other end of the price spectrum, Hugo Boss AG has collaborated with teddy bear maker Steiff, while Burberry Group Plc has created a Gund bear as part of its tie-up with Macy’s Inc.’s Bloomingdale’s.

But given that the style is so intrinsically linked with Ralph Lauren, the company is likely to be the biggest winner. The holiday pop ups have so far generated about $6 million in value from social media posts, engagement and articles, according to Launchmetrics.

Revenue in the all important golden quarter looks to be benefiting as well. Based on Bloomberg Second Measure data for the third quarter to date, Ralph Lauren’s sales through its own US stores and website are tracking well ahead of consensus expectations for North American sales growth, according to Mary Ross Gilbert, an analyst at Bloomberg Intelligence.

The shares, which slipped after some investors were underwhelmed by the next stage of the turnaround outlined in September, hit a fresh high in late November.

Social media fads can quickly fade: Google and Pinterest data indicate that the Ralph Lauren holiday aesthetic may have already peaked. But the halo around the brand over the past couple of months should have helped it deepen its connection with shoppers.

The narrative has also highlighted Ralph Lauren’s home décor and hospitality offerings, reinforcing its broader lifestyle credentials, something the company is keen to develop.

And when the preppy look wanes, as it naturally will, Ralph Lauren should be able to adapt. It is one of the few luxury companies to retain distinct sub-brands, from its high-end Purple Label to the heritage workwear of Double RL, so it has a good chance of tapping into whatever fancy comes next. Its strategy of growing in womenswear, particularly handbags, is another way to make up any shortfall.

There is scope for Ralph Lauren to continue flexing its marketing muscles, too. It recently revealed the uniforms that the US Olympic and Paralympic teams will wear for the winter games opening and closing ceremonies in Milan in February, and will outfit athletes again for the Los Angeles summer games in 2028. Ralph Lauren should consider an LVMH-style takeover of the event on its home turf to keep its name at the forefront of consumers’ minds.

Ralph Lauren looks well positioned to adjust to changing seasons- and changing fashions. If so, the buzz around the brand should linger long after the pine needles have dropped and the tree trims have been packed away.