There is a new trend that has been growing with Gen Z since 2021, where the style is called “quiet luxury” which means the stealth wealth of “Old Money” that has been rich for generations.
Millions of posts on social media with hashtags #OldMoney and #OldMoneyAesthetic have helped this trend of refined, enduring, timeless, classic style become popular.
The first brand that comes to mind when considering “old money” – appearance without aggressive logos and the demonstration of wealth is Ralph Lauren (RL, Financial), which introduced more modern touches into the classic concept without extravagant bling.
Ralph Lauren reported its second quarter of Fiscal 2025 with revenue increasing by 6% to $1.7 billion on both a reported and constant currency basis. RL has its fiscal year beginning from April to March therefore the second quarter fiscal year 2025 is equivalent to the period of July, August and September in the calendar year 2024.
RL's revenue increased by 9% in Asia to $380 million in the reported quarter, beating many expectations. In China itself, part of the broader Asia market, RL's sales grew by 39%, whereas other luxury brands struggled particularly in China. The same story applies in Europe and North America with 7% and 3% increases, respectively. With its branding, RL is well-positioned for organisational success during economic threats and difficulties.
However, things were different for RL's sales story before 2021.
In the past decade, Ralph Lauren enjoyed growth only after 2021 when the old money aesthetic began gaining traction among Gen Z. Years before 2021, the “old money” brand struggled with decreasing sales due to the COVID-19 pandemic, a decline in wholesale and retail sales, economic uncertainty, and store footprint reduction.
RL responded to its younger consumers quickly by leveraging digital channels and now sees a staggering 34% growth in e-commerce sales, significantly contributing to the company's overall revenue increase.
the general luxury goods market is suffering due to issues like inflation as well problems with the Asian market, and yet RL receives boons from the new popular 'Old Money' aesthetic.
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