Archive for February, 2008

Tomato/Tomahto; Potato/Potahto . . . Let’s Call the Whole Thing RALPH!

Posted in Blogroll on February 19, 2008 by nmb

. . . This past week, a group of apparel power vendors and I hit Penney’s to check out the just-landed Ralph-Lauren-created American Living brand launch . . . Any doubts that I harbored regarding Ralph’s (and Penney’s) ability to first, wedge yet another proprietary brand into Penney’s stores and second, to execute a multi-category lifestyle brand without leveraging any of the world-of-Ralph brand monikers (Ralph, Polo, Chaps, My Little Pony . . . oh wait, that’s something entirely different) quickly washed away as we beheld lifestyle-branding at its finest …

 

J.C. Penney’s latest mega-launch may be called American Living; however, one glance at the madras, gingham and seersucker juxtaposed within Penney’s sea-of-khaki men’s department (that’s right, men’s) leaves no mystery as to the creator, particularly since Ralph’s usual morphalicious translations in women’s, kids and home didn’t miss a beat.

 

American Living is unmistakably Ralph, down to the white wood display shelves, all-American flag-with-eagle brand ID (placed prominently, and prodigiously, throughout the collection), generous use of fabric and color, and strength-in-numbers displays of core essentials . . . okay, maybe a pink short sleeved polo shirt isn’t exactly a men’s essential in the middle of February at Penney’s . . . or, at $34.99 “on sale” (compare at the usual yikes price of $75.00 for the Polo version at your neighborhood better department store), perhaps it is.  That brings me to two areas of concern that the group and I all shared in an otherwise stellar program launch:

 

1.       Isn’t it a bit “Penney’s wise and pound foolish” for JCP to carry its usual pseudo markdown pricing shenanigans into this program right out of the starting gate?  Just about everything was marked down a minimum of 30% the week it all landed.  I’m feeling an early loss of credibility for a program that promised to build the top end at Penney’s . . . talk about “train ‘em to wait” strategy at its worst . . . maybe next week it’ll be at half price?  Wait and see!

 

2.       Penney’s program was out in full spring glory; pink, green, madras, seersucker, supplex.  Compelling enough to make me want to plan that golf vacation . . . and I don’t even golf.  Walking across the lifestyle center (where else would you buy lifestyle brands?), Dillard’s had a whole lotta real-Ralph out . . . all of it drastically-reduced FALL merchandise, nary a Bermuda short in sight.  Cowl neck sweater with those cords?  Surely Dillard’s and other struggling better-to-best retailers won’t take kindly to Ralph delivering such an intact beauty to Penney’s while they are sitting on coats in rounder strength! 

 

This one will be fascinating to watch . . .

  

Quick review:  Launched in 575 Penney’s stores, catalog and on jcpenney.com,  American Living is the first major deal struck by Global Brand Concepts, an entity which Polo Ralph Lauren formed late last year to develop lifestyle brands as exclusives for department and specialty stores . . . while GBC will provide varying levels of design, production, marketing and advertising support (depending on the deal), one very important caveat for any and all brands, none of the GBC brands will have any references to Ralph Lauren.  (Interesting aside, Ralph Lauren just poached Gail Onorato from Liz Claiborne to be president of women’s wear for American Living and Chaps, Lauren’s exclusive brand for Kohl’s.)

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Ralph Lauren & J.C. Penney: A Study in Partnership vs. Ownership

Posted in Blogroll on February 13, 2008 by nmb

Look for our full coverage of the American Living program at Penney’s this week . . . 

The Ralph Lauren/Penney’s collaboration speaks to a larger trend: the fast-moving world of retail has moved beyond traditional “private label” and into lifestyle branding, and from ownership to partnership; a new world in which retailers and brands do what they do best rather than pretending that everyone can do everything. Wal-Mart’s most recent change in the apparel division (moving sourcing and product development to New York) isn’t about favoring the Big Apple over Bentonville, it’s about taking less ownership of manufacturing by re-partnering with suppliers who do it best, and augmenting private label by partnering with brands that come with instant consumer awareness. If that means licensing brands rather than owning brands (a la Op), then so be it. Macy’s partnered with Zoom Systems and J&R Electronics knowing that they need to be relevant in consumer electronics while acknowledging that they don’t have the expertise, or time, to build the category internally. The premise of Lauren’s Global Brand Concepts (a concept in no way intended to remain a Penney’s-only project) is that Ralph Lauren’s well-honed brand development expertise has earned him the cred to churn out proprietary power brands for specific retailers without putting his name or logo on the products he creates. As for Penney’s, in spite of their terrific private brand building track record (Arizona anyone?) rather than arrogantly plowing ahead with a sea of self-created brands, they had the wisdom to partner with the king of lifestyle brand creation for their biggest power launch. Remember all of the nay-saying about Penney’s partnership with Sephora? J.C. Penney knows when to say “Don’t try this at home!”