Ralph Lauren has signed a long-term deal with the family-owned Haworth Lifestyle Design group in Michigan to broaden the production and distribution of Ralph Lauren's luxury furniture business.
Haworth will spearhead Ralph Lauren's product development, sourcing, manufacturing, product marketing, and wholesale account management starting April 1, 2024, showcasing the brand's lifestyle offerings across various home categories, including lighting, floor coverings, fabric, wall coverings, bedding, bath, tabletop, decorative accessories, and gifts.
Guillaume Tardy, Ralph Lauren's chief lifestyle and licensing officer, expressed that the home category holds significant potential for them. Partnering with Haworth Lifestyle Design will enable them to benefit from craftsmanship, manufacturing, and customer service expertise. This collaboration aims to expand the distribution of their luxury furniture, accelerating the global growth of Ralph Lauren Home.
Competitive Landscape and Trend in the Luxury Home Market
Ralph Lauren's home business may have once reached $500 million in sales at its peak, but exact figures are challenging to confirm due to its licensed nature. While the company doesn't disclose specific home business segment revenues, last year's licensing revenues from apparel, eyewear, fragrances, and home furnishings were approximately $160 million out of its $6.4 billion total. It was also reported that the company's major home licenses include lighting with Visual Comfort of America and bedding and blankets with Hollander Sleep, now Keeco.
The absence of furniture in Ralph Lauren's significant licenses indicates it may have overlooked the surge in the luxury home furnishings market post-pandemic. The market grew significantly, reaching $58 billion, a 24% increase from 2019 to 2022, per the Bain-Altagamma luxury report. However, this year, the segment is expected to see minimal growth, ranging from -2% to 2%, according to Bain estimates.
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Ralph Lauren's primary competitor in luxury homes, RH advanced, grew over 40% from $2.6 billion in 2019 to $3.8 billion in 2022, although it dropped to $3.6 billion in its latest year. Since 2020, Ralph Lauren's furniture has been produced under license with Theodore Alexander, available on the RL website and through various wholesale accounts, including Macy's and Bloomingdale's.
There's also a dedicated Ralph Lauren Home store in Dallas, which moved from Highland Park Village to its current location in the Knox Street area this year. Despite potential timing concerns, the new agreement with Haworth is expected to be robust. Ralph Lauren and Haworth Lifestyle Design will closely collaborate on bringing the Ralph Lauren Home experience to consumers, focusing on design, marketing, and selecting store locations and designs.
Taking it To The Next Level
Ralph Lauren might have found the ideal partner in Haworth to revive its former success in the home sector. While Haworth is renowned for office furniture and competes with the $4 billion MillerKnoll company, it also boasts other luxury furniture brands beyond its main label. With global sales revenues of around $2.5 billion, operations in 150 countries, and over 8,000 members, Haworth is well-regarded in the interior design trade and is the go-to for luxury consumers in making furniture design choices.
Haworth's portfolio includes renowned brands like Cappellini, Cassina, JANUS et Cie, Karakter, Zanotta, Poltrona Fra, Luminaire, and more. Moreover, it holds licenses for luxury names such as Dolce & Gabbana Casa, Versace Home, Trussardi Casa, Bentley Home, and Bugatti Home, solidifying its credibility in the luxury market.
"Like Ralph Lauren, at Haworth Lifestyle Design we are driven by a passion for craftsmanship, innovation, and helping people around the world lead a life well-lived," said Dario Rinero, Haworth Lifestyle Design CEO.
