Bling battle: US luxury brands can challenge European labels

Coach and Ralph Lauren are showing us they've got what it takes

- Andrea Felsted

My boyfriend, a menswear aficionado, is obsessed with Ralph Lauren. Now, as the brand has polished its image, so is everyone else. That has enabled it, as well as Coach owner Tapestry, to outperform some European rivals. This is a dramatic reversal of fortune compared with a decade ago, but it's one that has a solid chance of enduring, even as the luxury giants decide they want their middle-class customers back.

The two US companies have benefited from rampant price hikes by industry behemoths like Gucci and Prada which have alienated many customers. Shoppers have now turned to Ralph Lauren, which ranges from the top-end Purple Label to the premium Polo, as well as Coach, which is perceived as value for money, especially now that it is trendy. That their biggest market, North America, is also leading the luxury revival, has created a rare window of opportunity for these semi-luxury names.

But this window may be closing. With the likes of LVMH attempting to recapture those they've priced out and US consumers looking more fragile, Ralph Lauren and Tapestry will have to prove their renaissance is more than being in the right place at the right time.