Ralph & Russo Falls Into Administration
UK luxury brand Ralph & Russo has announced that they gone into administration, as a result of the drop in revenue due to COVID-19. Begbies Traynor and Quantuma, the appointed administrators of the brand, “will now investigate all possible options to secure the future of the globally celebrated brand for the benefit of all stakeholders. This is a move to assist the brand in restructuring the business side of things after the retail economy across the world has been hit by economic challenges from the pandemic. This is the only way to ensure longevity and success.”
This brand was indeed celebrated, with many celebrities endorsing the brand and their garments, including Beyonce and Angelina Jolie. In 2017, Meghan Markle announced her engagement to Prince Harry while wearing a Ralph & Russo dress. More celebrities include Kaia Gerber at the fashion awards, Izabel Gaulart, Kendall Jenner and Elle Fanning at the Cannes Film Festival, Bella Hadid for the amfAR Gala, Jessica Alba and Hailee Steinfeld at The Vanity Fair Oscars Afterparty, Jennifer Lopez at the Oscars, Blake Lively at the Washington state dinner and more, all in 2017 alone.
On the Financial Times, Ralph & Russo was ”Founded in 2007 by Tamara Ralph and former partner Michael Russo, Ralph & Russo was the first British fashion label to be designated as a “corresponding member” on the haute couture schedule in nearly a century by The Chambre Syndicale de la Haute Couture, French fashion’s governing body.” This is monumental for a UK brand going international, gaining a mass audience and unprecedented amounts of attention as a UK brand in France, also known for its fashion expertise. It was the first time that a British brand had gotten this status in over one hundred years, which took the duo eight years to obtain. With boutiques in Harrods department store, as well as in Doha and Dubai, and Monaco, it had plans to expand to the US, Europe and Asian markets. At this given moment, Ralph & Russo has several categories of fashion, including couture, ready-to-wear and luxury goods lines.
With many fashion brands falling behind and closing while other brands have sky-rocketing sales which have not been seen before, there is room for clientele analysis. UK brand Burberry, has recently announced via the FTSE that the brand has had a strong rebound since December, with revenue expected to rise 28-32% compared to the same period last year, which was the start of the first lockdown. With overall revenue only expected to decline this year by only 10%, digital full price sales in China has tripled. In a country where Burberry is famous for its design and iconic logo, why are other luxury brands falling into administration or worst, closing down permanently?
Hopefully by the next year, we will understand about brand loyalty and how certain brands have bounced back quickly from the pandemic. At this given moment, it is still very difficult to determine given the chaotic timeline of the pandemic that restricts our conversations on when it could potentially end. With many countries like the UK having announced a roadmap of when things “can go back to normal”, we dream endlessly of the time before. After this pandemic, we will learn considerably on what went wrong for brands and how marketing and customer loyalty is paramount to survival.
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