Ralph Lauren, the American luxury apparel brand, saw a substantial spike in sales on Tmall during China’s recent Singles' Day shopping event. Reports indicated that while the brand’s gross merchandise value (GMV) on the platform exceeded ¥1.6 billion (approximately $220 million USD), the return rate allegedly reached a staggering 95%. Although both Ralph Lauren and Tmall have refuted these claims, the high rate of refunds illustrates how Ralph Lauren’s premium pricing inadvertently positioned it as a "bundling solution" for consumers looking to maximize discounts.
Singles' Day is China’s biggest annual sales event, and it offers extensive coupon stacking options for shoppers to reduce total costs. To meet spending thresholds for larger discounts, many consumers included high-value Ralph Lauren items in their carts, only to refund them post-purchase. Ralph Lauren’s high item prices and efficient refund process made it an ideal “bundling store” for discount-driven consumers. Last year, similar strategies led to Burberry’s popular items temporarily going out of stock, with Ralph Lauren emerging as the sales leader. This year, brands like Uniqlo have also become popular for bundling; however, Uniqlo preemptively disabled its refund option on non-delivered items for a brief period during Singles' Day.
Although Ralph Lauren has historically enjoyed success among affluent Chinese consumers, its brand presence in the Chinese market remains relatively modest. Unlike European luxury brands, which often derive over 30% of their global revenue from Asia, Ralph Lauren’s sales in China contribute approximately 6% to its global revenue, as noted by CEO Patrice Louvet in a 2023 interview with Women’s Wear Daily. However, the brand has seen recent growth amid the rising popularity of "old-money" style trends in China. In the 2024 fiscal year, Ralph Lauren’s revenue in China grew by 25%, helping to boost its Asia-Pacific revenue by 14%.
Despite this positive trend, industry experts warn that becoming a top choice for refund bundling may present challenges for Ralph Lauren’s luxury positioning. Retail industry analyst Ma Gang noted that while this surge in "bundling" popularity has increased brand visibility, it may also reflect a potential gap in consumer loyalty or perceived value, with consumers viewing Ralph Lauren more as a strategic choice for savings rather than a luxury purchase.
Responding to the refund rate rumors, Tmall’s spokesperson asserted that the reported figures are inaccurate. Ralph Lauren, while silent on specific figures, emphasized that its overall performance during Singles' Day showed notable growth, with increased transactions, high customer engagement, and rising brand loyalty metrics.
As Ralph Lauren continues to expand in China, where it’s seen consecutive quarters of growth since 2020, the long-term impact of such discount-driven sales on its luxury reputation remains to be seen.
