Introduction to Brand Height
On paper, the brand height book is relatively easy: reduce excessive discounting and overexposure in the outlet and wholesale channels and increase desirability and exclusivity. This strategy enables brands to increase prices and improve margins.
Challenges in Achieving Brand Height
Although many luxury brands have attempted to increase their brand height, there are fewer current success stories. This suggests that achieving brand height is more complex than it appears on paper.
A Successful Example
Ralph Lauren seems to be an outlier in this context. The brand has achieved average retail unit growth for several years, which is an important metric for a successful brand height strategy. This growth refers to the average sales price of each product.
Key to Success
In the past month, Ralph Lauren reported an 8 percent increase, which is a significant achievement. This success can be attributed to the brand’s strategy, which has focused on reducing discounting and increasing desirability. By doing so, Ralph Lauren has been able to increase prices and improve margins, making it a successful example of brand height.
