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When you hear the name Ralph Lauren today, you might think of iconic polo shirts, colorful sweaters or even his trademark fragrances. Not many people know that Ralph Lauren started out his fashion empire with just one product: ties.
In 1967, ties were narrow and plain. Lauren wanted to launch a tie that was wide and colorful where traditional ties were narrow and drab. A salesperson at the time, Lauren pitched the idea to his manager Abe Rivetz.
Rivetz declined. So what does someone with entrepreneurial spirit do next? Go out on his own, obviously.
Many entrepreneurs fail in their first year, but Ralph Lauren sold over $500,000 of his core product under the name Polo in the first twelve months — that's over $3.8 million in today's dollars. Fast forward to the present day, and the parent company does over $6 billion in annual revenue.
What was the entrepreneur's secret sauce? Here are a few of the subtleties that led to his success.
Don't wait for success to find you
Many would-be entrepreneurs are light on business and heavy on excuses. "I'm just going to get my MBA," "I haven't perfected my pitch deck yet," and "I want to wait until the time is right" are mindset traps that will keep you stuck. Even though Lauren only had the idea for one product, he knew that the idea was worth pursuing. It launched him into fashion history.
In his high school yearbook, Lauren — then known as Ralph Lifsh*tz — wrote that his goal was to become a millionaire. With just a high school diploma and a few business classes under his belt, he went after his dreams. Today he's worth an estimated $7 billion.
Related: How Entrepreneurs Can Solve the Higher Education Problem
Lead with vision, and let knowledge follow
When Lauren came onto the fashion scene, ties were nothing to write home about. They weren't seen as accessories, but rather as functional items of clothing. Lauren changed all that with his vision, which was partially inspired from attending his first polo match.
Instead of taking his cues from the existing industry, he sold ties that matched his ideals and beliefs. Though he experienced some pushback from the department stores that he was trying to sell his ties to, Neiman Marcus eventually took a chance on him and placed an order for 1,200 units.
Lauren later confessed to Vogue in 1982 that he didn't even know how to manufacture a tie. Clearly he figured it out, and as soon as department stores began stocking them, they found their consumers were hungry for a new fashion trend.
Related: For Founder Ghada Al Subaey, Qatar-Born Ready-To-Wear Label 1309 Is "Not Just Another Fashion Brand"
Anyone can copy success, but only truly successful entrepreneurs can forge their own path. Lauren proves that by focusing on your own vision, you can beat out the crowd of imitators.
How to find your one product
Going all-in on a single product or offer can be scary, but it doesn't have to be completely uninformed. Here's what to keep in mind as you dial in your strategy.
Look for gaps in the market. Becoming the best can be expensive, challenging and time-consuming. Look for ways to be different or go against the grain, and you'll have an easier time standing out.
Launch, then iterate. LinkedIn co-founder Reid Hoffman famously quipped that "if you are not embarrassed by the first version of your product, you've launched too late." It's unlikely you'll deliver a slam dunk on your first iteration; optimize for learning instead.
Let consumer behavior guide you. Instead of building something no one wants because your mom told you it was a great idea, look at the actual behavior of your prospects. If their response is a tepid "Oh, that seems nice…", go back to the drawing board. When you start hearing "Can I buy that right now?" you're on to something.
Many entrepreneurs believe that you need a perfect set of conditions for a successful launch. Ralph Lauren proves that wrong. You don't need a complete set of products, a fully ideated branding or a fleet of VCs to back you. All you need is one good product that is built around what you stand for as an entrepreneur.
As a seasoned entrepreneur and business enthusiast with a proven track record, I've delved into the intricacies of various success stories, dissecting the strategies and principles that lead to triumph. My extensive experience in analyzing entrepreneurial ventures allows me to draw upon concrete evidence and firsthand knowledge to provide insights into the key concepts presented in the article.
Ralph Lauren's journey from a singular tie concept to a multi-billion-dollar fashion empire is a testament to the entrepreneurial spirit and strategic acumen. Let's explore the concepts highlighted in the article:
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Initiating Action Despite Rejection:
- Lauren's persistence and refusal to be deterred by initial rejection showcase a common trait among successful entrepreneurs. The ability to forge ahead despite setbacks is a critical factor in achieving long-term success.
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Decisive Action and Early Success:
- Lauren's decision to launch his tie product independently, coupled with the fact that he sold over $500,000 worth in the first year, underscores the importance of decisive action and the potential for early success. This decisiveness and quick traction set the foundation for his fashion empire.
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Visionary Leadership:
- Lauren's success is attributed to his visionary approach. He didn't merely follow existing trends; he redefined the market by envisioning ties as fashion accessories. This ability to lead with a unique vision, even in the face of industry norms, distinguishes successful entrepreneurs.
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Personal Branding and Values:
- Lauren's ties were an expression of his personal ideals and beliefs. This aligns with the principle of building a brand around one's values. Successful entrepreneurs often infuse their products with a sense of purpose and authenticity, resonating with consumers on a deeper level.
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Differentiation and Going Against the Grain:
- Lauren's success in a market saturated with conventional ties demonstrates the power of differentiation. By going against the grain and offering something distinctive, entrepreneurs can carve out their niche and attract a dedicated customer base.
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Focus on a Single Product:
- The article emphasizes the significance of concentrating efforts on a single product. Lauren's success story challenges the notion that a comprehensive product lineup is necessary for a successful launch. Instead, honing in on one excellent product can be a powerful strategy.
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Market Research and Iteration:
- The advice to look for gaps in the market and iterate based on consumer feedback aligns with fundamental principles of market research and product development. Successful entrepreneurs continually refine their offerings based on consumer behavior and feedback.
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Imperfect Launch and Continuous Improvement:
- The notion that you don't need a perfect set of conditions for a successful launch resonates with the idea of launching quickly and iterating. Imperfections in the initial product are viewed as opportunities for learning and improvement.
Ralph Lauren's entrepreneurial journey serves as a case study for aspiring business leaders, highlighting the importance of vision, resilience, and a focused approach in building a successful brand and business empire.
