Business location question URGENT HELP NEEDED?

Question

i have a business project and i was wondering why ralph lauren(clothes) need to consider their location for a successful business ans why cost may be affected by this EG they need to be somewhere where the rent or purchase of property will be worth it (expensive area) anyone know???

Answer 1

Location is important for Ralph lauren because:

1. Demographics - They want to place their stores in areas where their customers are likely to live and frequently shop...example: Putting a Ralph lauren store in the middle of the inner city where fashion trends may shift more toward Fubu and Sean John than Ralph Lauren would not be beneficial because they would not maximize their sales.....However, placing their store in the suburbs which are more affluent and economically stable and trends are more preppy, the customers would be more likely to buy from Ralph Lauren in that environment

b. They will want to get the best proce per sq ft for their store space...if they have ti pay more then they will have to recoup that cost of increase mortgage/rent by raising the prices of their clothing in the stores

Answer 2

Ralph Lauren clothes are considered more "high end" and will attract higher end customers than let's say Kmart or Target.... To be successful you need to go to the market where the demographics show that your store will be patronized by customers who can afford your prices!