Calvin Klein and Tommy Hilfiger - Distribution (2006)

Résumé du document

Since the existing markets of Calvin Klein and Tommy Hilfiger were saturated, both companies have been actively seeking to expand through new markets, via distribution as well new target populations. American spirit is core to the lifestyle aesthetic as well as business style of both companies. Unlike traditional European luxury houses, which keep control over manufacturing and distribution to stress heritage and maximize true prestige, Calvin Klein and Tommy Hilfiger compromise control and exclusivity to maximize revenues.

Extraits

[...] CALVIN KLEIN & TOMMY HILFIGER Distribution (2006) Calvin Klein Calvin Klein History Calvin Klein Strategy Keep artificial prestige but turn to masstige Maintain minimum artificial exclusivity status derived from early success of the designer Calvin Klein Develop masstige core business and extend Vertical as well as horizontal extensions Lifestyle Product Range Products: Accessibility & Dream Fashion Hierarchy Retail, Wholesale & Licensing Licensing: primarily a licensed brand Calvin Klein Inc. provides artistic and strategic direction Licensing partners responsible for distribution issues (wholesaling and retailing etc.) Altogether, Calvin Klein-licensed products generate more than billion a year in retail sales; 9 percent growth Retailing One Calvin Klein Collection store operated by CKI; others maintained by licensing partners cK and sportswear: dept stores and outlet high-end retail freestanding signature cK stores (Asia) Wholesaling Handled by licensing partners In the U.S., Collection is currently available in 27 doors. [...]

[...] There's no question the interest around the brand and the $100 million worth of publicity we get has to do with the Collection and not the better-price goods.” Mark Weber, chairman and chief executive officer of PVH Since the CKI acquisition in 2003, PVH has added close to billion in additional sales, including men's sportswear, women's sportswear and footwear Tommy Hilfiger Tommy Hilfiger- Mission The Tommy Hilfiger Corporation is dedicated to living the spirit of the American Dream. We believe . [...]

[...] the spirit of youth is our greatest inspiration resourcefulness is the key to value and excellence in making quality a priority of our lives and our products by respecting one another we can reach all cultures and communities by being bold in our vision we continually expand our boundaries Tommy Hilfiger- History Tommy Hilfiger- History Tommy Hilfiger- History Tommy Hilfiger- History Tommy Hilfiger- Brands Tommy Hilfiger- Accessories Tommy Hilfiger- Segments Tommy Hilfiger- Segments Tommy Hilfiger- Segments Tommy Hilfiger- Retail Strategy Tommy Hilfiger- Retail Stores As of March As of March Fashion Hierarchy Vertical & Horizontal Extension 2002 - 2005 The Illustration 2002, within the menswear component in US, a reduced level of consumer spending, loss of market and new competitors Response: improving the value proposition to consumers, trend-right fashion at sharper price, to leverage strengths in operations 2003, the womenswear expansion and the growth in EU offset the keep decreasing net revenue of menswear in wholesale segment, especially in US market Response: Improving the sophistication of menswear and higher-tier product in worldwide specialty stores 2004, the growth of EU largely offset the keep decrease of menswear in US market Response: H Hilfiger label, to expand within the upper end of the better apparel market 2005, significant growth in EU, US is under reconstruction Response: multi-dimensional EU distribution, re-functioning US wholesale business, improving operational efficiency, acquisition of Karl Lagerfeld Vertical Extensions VS Horizontal Extensions Tommy Hilfiger Strategy Consolidate the masstige market and towards the more prestige --Maintaining the wholesale volume by global strategy ( EU US) Steps to upscale apparel segment by H.Hilfiger and Karl Lagerfeld Global Expansion Continents What Annual Reports Reveal Tommy Hilfiger- Recent Acquisition 2005: Tommy Hilfiger acquired clothing brand Karl Lagerfeld Covered Lagerfeld Gallery Signed the German-born designer into long-term contract Did not include Lagerfeld's contracts with Chanel and Fendi Exploit growth possibilities in multiple categories Distribution Channel US: Luxury department stores & specialized shops Further broaden the geographic distribution Logic behind the acquisition Group strategy: A major global fashion player High-end clothing (Designer's ready to wear) Built a multi-brand portfolio of business Accessibility & Dream Comparison Default Design CALVIN KLEIN & TOMMY HILFIGER Distribution (2006) Calvin Klein Calvin Klein History Calvin Klein Strategy Keep artificial prestige but turn to masstige Maintain minimum artificial exclusivity status derived from early success of the designer Calvin Klein Develop masstige core business and extend Vertical as well as horizontal extensions Lifestyle Product Range Products: Accessibility & Dream Fashion Hierarchy Retail, Wholesale & Licensing Licensing: primarily a licensed brand Calvin Klein Inc. provides artistic and strategic direction Licensing partners responsible for distribution issues (wholesaling and retailing etc.) Altogether, Calvin Klein-licensed products generate more than billion a year in retail sales; 9 percent growth Retailing One Calvin Klein Collection store operated by CKI; others maintained by licensing partners cK and sportswear: dept stores and outlet high-end retail freestanding signature cK stores (Asia) Wholesaling Handled by licensing partners In the U.S., Collection is currently available in 27 doors. [...]

[...] It sells globally in 85 doors. Brand & Line Extension Distribution Channel Global Growth 3 Segments Dress shirts Sportswear Footwear What: Become multiple brand with multiple distribution channel at multiple price points Capitalise on Calvin Klein's image and prestige Higher acceptance by consumers Lower marketing and introduction costs Horizontal and vertical expansion Extend distribution network Collection part of Calvin Klein is an integral part of our company. [...]

[...] There's no question the interest around the brand and the $100 million worth of publicity we get has to do with the Collection and not the better-price goods.” Mark Weber, chairman and chief executive officer of PVH Since the CKI acquisition in 2003, PVH has added close to billion in additional sales, including men's sportswear, women's sportswear and footwear Tommy Hilfiger Tommy Hilfiger- Mission The Tommy Hilfiger Corporation is dedicated to living the spirit of the American Dream. We believe . [...]