Ralph Lauren has arrived in Moscow – “style guru”, “the most successful designer in the USA”, “the man who dressed America”, etc., etc. In addition to all the titles that the world press has awarded Lauren, he is also a paradoxical man: the son of poor Jewish immigrants from Russia, who became a trendsetter for the richest people in America and the rest of the world; a designer without a specialized education, who has collected all the prizes of the US fashion industry; a businessman who has made a billion-dollar fortune on his name (everything from sofas to dog bags is sold under the Ralph Lauren brand) and whose company produces nothing on its own...

Ralph was born and raised in New York City to Frank and Frida Lifshitz. His father, a painter from Pinsk, came to the United States in search of a better life. The Lifshitz family was not rich, and Ralph, the youngest child in the family, had to wear his older brothers' clothes. Already at school, he amazed his classmates with his ability to add charm and chic to old things with small details. "Ralph could talk for hours about buttons and scarves," recalled one of his classmates. At 16, Ralph changed his last name from Lifshitz to Lauren ("Simply because Ralph Lauren sounds better," he explains).

After dropping out of college and serving in the army, Ralph Lauren worked as a clothing salesman at Brooks Brother's and Bloomingdale's, then got a job as a tie designer at the New York firm Beau Brummel. But Lauren's tenure as an employee was short-lived - in 1967, he created his first collection of ties, and the following year, he registered the company Polo Fashions. Ralph Lauren's expensive silk ties amazed wealthy buyers - until then, even wealthy Americans wore cheap synthetic suits and ties. Ralph Lauren was sure that he would be able to convince them to buy very expensive and very high-quality clothes. And so it happened. In 1969, Lauren's former employer - the fashionable department store Bloomingdale's - invited him to open his own section. In 1971, Ralph Lauren launched a line of women's clothing and, following the example of European designers (he was the first American fashion designer), opened a single-brand boutique - naturally, in the land of millionaires, in Beverly Hills.

But the following year, the company was on the verge of bankruptcy: things were going too well, it was growing too fast and, like many young companies, it became unmanageable. Ralph Lauren was helped by Peter Strom – in exchange for investments, he received a 10% stake in Polo Ralph Lauren and the position of president. The partners reorganized, and the company began to grow even faster than before. In 1978, Ralph Lauren perfume appeared, and in 1983 (the company by that time had already received the name of its founder – Polo Ralph Lauren), – a collection of home decor items. “The Ralph Lauren Lifestyle” was finally formed and won millions of fans.

Ralph Lauren's style is a stylization of different eras: English fashion, colonial, Wild West, which has become an independent style. In fact, who can say for sure how cowboys dressed and lived in the 19th century? Ralph Lauren offers his own version: when he failed to find a suitable ranch, he built his own "authentic 19th century ranch" from scratch in Colorado.

From the very beginning, Ralph Lauren decided that he would not be involved in production - only in design and sales. Today, Polo Ralph Lauren employs about 350 manufacturing companies that produce almost the entire range of goods that define the concept of "lifestyle" - from sports shoes to evening dresses, from tableware to saddles. This style is promoted through almost 300 Ralph Lauren stores around the world. Control over manufacturers and sellers is very strict - right down to how exactly certain goods should be displayed on the shelves.

Naturally, Polo Ralph Lauren does not have good relations with all manufacturers. Analysts say that the company's biggest mistake was the contract for tableware production with JP Stevens in the 80s - the quality did not match the price at all, and delivery dates were constantly missed. A promising licensing agreement with clothing manufacturer Jones Apparel also ended in scandal - the parties had to sort things out in court.

But overall, Polo Ralph Lauren is doing very well: sales for the 2005-2006 fiscal year grew by 13.3% to $3.746 billion, and net profit by 61.7% to $308 million. Lauren's latest business projects are a licensing agreement with the Italian company Luxottica to produce eyewear (they went on sale in April) and a joint venture with the Richemont Group, which will produce Ralph Lauren watches starting in the fall of 2008. For Ralph Lauren, this joint venture will be the first experience in production, and for the Richemont Group, one of the largest manufacturers of luxury watches and jewelry, the first joint venture with a designer brand.

Talent and a well-chosen business strategy made the poor boy from the Bronx very rich: Forbes magazine ranks Ralph Lauren 66th on the list of the 400 richest Americans with a fortune of $3.9 billion. In his six homes, the designer has surrounded himself with luxurious exclusive items; he is one of the largest collectors of vintage cars in the world (his collection is estimated at $100 million) and watches.

Arriving in Moscow for the opening of his two boutiques, Ralph Lauren met with a Vedomosti correspondent.

A matter of taste

– Information that Polo Ralph Lauren Corp. was going to start a business in Russia appeared back in the late 90s of the last century. Why did this event take so long?

– We wanted to come to Russia when we found people who would help us develop our brand. Over the years, we had negotiations with many people, and then we met with Mercury. They expressed a strong desire to work with our brand and told us how they were going to do it. I decided that this is exactly what we needed.

– Was it just a question of finding the right partner? In an interview with the British The Times in 1999, you said that you were not sure that Russian buyers had mature enough taste for your things.

– Taste can be developed. Although what I read about Russia at that time showed that the taste was for things more flashy than what I do.

But for me it has always been fundamental what I want to communicate to my customers (in any part of the world) and how I do it. For me it is fundamental that the store is in the right place. In England I first opened a small boutique and then decided to move to a bigger place. I was offered a lot of buildings, but the one I chose was occupied until such and such a year. I said: I will wait. And in the end I got it.

In Moscow, our stores are also in the right places, and I feel that we have found the right partner in Russia – Mercury has a lot of experience in retail.

- But why did you decide to operate in Russia through a partner? After all, other large manufacturers of luxury goods - LVMH, Richemont Group, on the contrary, are starting their own business in our country.

- Yes, I know - I talked to them. And I think that for our positioning and experience, our choice is correct.

– You have rethought the British style of clothing, created the safari style for Africans (and the rest of the world), the cowboy style for Americans (and others). Maybe it is time for the Russian style?

– I had a Russian collection five or six years ago. If I see something interesting in Russia, maybe it will awaken my imagination.

– What result will your company achieve in its first year of operation in Russia?

- I can't give you any numbers. I just have a feeling that we're doing everything right.

“We don’t own factories.”

– The global trend for luxury companies is to take control of production. You are still developing licensed production. At the same time, you bought the polo.com website and a share in Ralph Lauren Japan. Can you formulate your strategy: what is Polo Ralph Lauren going to do independently, and what is it ready to give to partners?

– I started my business with very limited money: I had only $50,000 in credit. As the business grew, licensed production became more and more important to me. This gave me the opportunity not to bother with production issues, but to focus on opening new stores. Our strategy is this: we do not own the factories where Ralph Lauren products are manufactured, we are responsible for the design, quality control of the manufactured products and sales. And our licensees work under our very strict control. If we feel that we have more knowledge about the subject, we will buy the license back. If the subject is very difficult to manufacture and our licensee copes well with their tasks, we will keep the license. But I want to emphasize that you must have a very good relationship with your licensees - in bad partnerships, such relationships do not work.

– How is your relationship with the Richemont Group, which will produce Ralph Lauren watches, formalized?

– We have a 50/50 joint venture with the Richemont Group. I came up with the concept of this watch and its design – I have always loved watches and I made the watches that I would like to wear myself and that I hope my clients will want to wear: there will be a sports line, a classic line and a jewellery line. Richemont is responsible for production. We have chosen the right mechanisms, which is very important for watches. In the fall of 2008, you will see these watches. And we are only at the beginning of the journey – over time, I hope, Ralph Lauren watches will develop their own mechanisms.

– How much will your watch cost?

– From 10,000 euros.

– What will the newly created company Global Brand Concepts do?

– Large department stores sell a lot of different brands and even goods under their own labels. But retailers have little experience in design. We have experience in retail and we have experience in design. And we decided to offer this experience to other stores and brands by creating a specialized company: we will develop the concept of their own brands for them. For example, for the JC Penney chain, we developed the concept of the American Living brand. Of course, my name will not be used in this case – this is an exclusive design for customers.

– You hold the positions of Chairman of the Board, CEO and Chief Designer of Polo Ralph Lauren Corp. What are your responsibilities?

– I founded this company, and I have a vision of how it should develop. This is my main mission: developing the Ralph Lauren concept – after all, we offer not just clothes or interior items, but a lifestyle – developing new brands, designing new products. And, of course, sales – we are actively opening new stores around the world.

As a Wall Street-traded company, we need to be consistent and predictable. And develop new products that will allow us to move forward and delight investors.

– A design company should be predictable?!

- Predictable for Wall Street. Unpredictable for men and women. (Laughs.)

Creditors or shareholders

– Why did you decide to take the company public in 1997?

– By that time, I already had a partner – Goldman Sachs, which owned a share in the company. I wanted to scale up the business, so going public was the next logical step.

- And what do you think about this decision 10 years later? Do you regret it: shareholders and analysts do not put pressure on you, do not prevent you from following the chosen course?

- No. The stock exchange disciplines the company. And in any case, you cannot run a business completely independently: if you do not raise money from the stock market, you take a loan from the bank. That is, you have to choose what is better: creditors or shareholders. I think, using the example of Ralph Lauren, we have proven that a public company from the fashion world can also be successful and attractive to shareholders.

– Can you describe your typical working day?

– Every morning I start with a run and a gym session – I have a personal trainer. After that I go to the office where I do design, I take part in meetings with designers and people from the commercial departments... Sometimes it’s discouraging because you have to switch very quickly, for example, from discussing new colors for men’s shirts to financial issues. So my working day is always very busy, but what I like most is creating new products, because without a product you don’t have a business.

– The Factiva database, which is formed by thousands of quality newspapers and specialized magazines from all over the world, has only produced two of your interviews in the last 15 years. Incredible secrecy for the head of a public company, and especially for a person from the world of fashion! Why?

– I did give more than two interviews during this time, but of course I don’t do it often. (Laughs.) I realize how important and useful it is to meet with journalists, but I don’t think there’s any need to be in every magazine. Because if there’s too much of you, you stop being interesting to people. I want to be exclusive – like the things I do. And I give interviews when I feel like I have something to say, and journalists are capable of asking interesting questions.

- But don't you think that this could hinder your sales? In Russia, I think that if people know the name Ralph Lauren, they are not sure whether it is a real person or just a brand.

– We have done a lot of work, and I would like to believe that in recent months the name Ralph Lauren has become much better known in your country. And our stores in Moscow speak for themselves. I believe that the secret of success is “being in the right place at the right time,” and I think that in Russia we will be able to achieve this.

“Family is everything”

– Do you know where your father’s hometown is – Pinsk?

- No. I was going to go there this time, but I was told that it was too far from Moscow.

- Yes, now it's even a different country - Belarus. By the way, what was your father's full name? It's not like they would name a Jewish boy Frank in Russia.

- In America, he was always called Frank Lifshitz. You know how it was: an immigrant, arriving in the US, could call himself by any name. Or his name could be written down incorrectly.

– You are one of the few designers who has a family. What does family mean to you?

– Family is all you live for.

– Your son David is Polo Ralph Lauren’s senior vice president for advertising and marketing, and your son Jerome is executive vice president responsible for men’s collection design. Do family relationships interfere with business and vice versa?

– We have a very close relationship with our children. I think it is not easy for them to work in their father’s company (as it is for any child), but there is no basis for conflict between us: they respect my opinion, and I respect theirs. If I go somewhere far, I always take my wife and children with me. They are still with me in Moscow. (David Lauren enters the room where the interview is taking place.) David is a very close friend of mine. We discuss films with him, if I am going to buy a car, I consult with him...

– In preparation for the interview, I read many articles about you. Some of them portray you as a very tough person, even a tyrant. How would you describe your management style?

– I am a very straightforward and honest person. And I hope I don’t have a reputation as a tyrant. I personally don’t feel like a tyrant and I am always set on long-term relationships with people. Look at Charles (Charles Fagan, Polo Ralph Lauren’s executive vice president for global retail sales, is present at the interview. – Vedomosti) – he has been working for the company for 21 years, he started out as a sweater salesman. I put him behind the counter when he was three years old. (Laughs.)

– You are the most successful American designer, both in terms of income and creativity. What is the secret of your success?

– You have to build a company with the right people – you can’t do anything alone. In a good company there is discipline, but people feel not only responsibility, but also their value to the company.

– How do you see the future of the company in 10 or 20 years?

- It is difficult to predict such a long term. I think we are moving in the right direction, diversifying our business sufficiently. We have young brands in our portfolio that have great growth potential. In the next five years, we will show very good growth dynamics.

- And you are not planning on retiring yet?

- Not yet. When I can’t climb the stairs (the conversation takes place on the third floor of a Moscow boutique. – Vedomosti), then I’ll think about it. (Laughs.)

INTERVIEW: Ralph Lauren, designer