Switching to a new category for a fashion brand can get very expensive, but many are still looking for ways to do it. On Thursday, Ralph Lauren became the latest company to license a category extension license to a partner rather than doing it in-house.
Ralph Lauren has teamed up with Delta Galil, an Israeli manufacturer of private label products, to create a line of women’s underwear and nightwear for the American brand. Ralph Lauren does not currently sell women’s underwear, but does make women’s sleepwear. Delta Galil will resume nightwear production and create a new line of women’s underwear for Ralph Lauren. The prices and the exact inventory of the goods are still in the process of being decided. The first collection will be launched next year.
Delta Galil, a publicly traded company with $ 500 million in revenue, has significantly increased its licensing business this year by adding Adidas to its list. Ralph Lauren is another multi-billion dollar company that Delta Galil has secured as a partner. CEO Isaac Dabah said he hopes to increase the company’s licensing business even further in the years to come.
“This partnership represents a significant addition to our licensing portfolio, and we are delighted to be working with such an iconic and timeless brand,” said Dabah. “This marks another important step in our strategy of growing partnership with leading global brands and follows our recent global licensing agreements with Adidas and Wolford. “
The Adidas and Wolford partnerships took place in June.
Ralph Lauren, which in its latest results reported nearly $ 200 million second quarter net profit and quarterly revenue of $ 1.5 billion, is working to grow its female side and d ‘attract a younger clientele, according to CEO Patrice Louvet. A movement towards women’s lingerie, an incredibly fast growing category that has skyrocketed 250 billion dollars worldwide makes sense for Louvet’s long-term ambitions. Buzzy DTC lingerie brands like Parade have seen strong growth in a short period of time, while giants like Victoria’s Secret are switching brands to stay relevant.
“Looking at the major categories that have been successful in the last quarter and looking to the future in terms of investments, we feel very well positioned overall and, in particular, for this young consumer”, Louvet said on the November 2 call for results. He pointed to categories like denim and sneakers, which he sees as underdeveloped parts of the catalog. Ralph Lauren has increased its marketing of these categories over the past six months.
Delta Galil fits well with Ralph Lauren’s ambitions. Victoria Vandagriff, president of the company’s Branded division, said Delta Galil had experience creating underwear and sleepwear for many contemporary Ralph Lauren brands.
“We’re pretty dominant in intimate clothing,” Vandagriff said. “We have worked with Tommy Hilfiger and Adidas, and in children” [underwear], we work with Calvin Klein. It’s a dynamic category right now. There is a lot of interest globally.