Posted at 12.12.2018
Heavy exposure to matured markets: Though, Tommy Hilfiger is based in Hong Kong, the company is significantly reliant on matured markets for its revenues. The business generates a majority of its revenues from European countries and THE UNITED STATES. The market in these market segments is matured and has been severely influenced by the financial downturn. Traditionally, there has been a focus of luxury brand sellers in these regions credited to high throw-away incomes. However, in the current situation Tommy Hilfiger's over dependency on developed market segments could adversely affect the company's overall progress and success.
The strategy Hilfiger should apply: Tommy Hilfiger's goods that the clients considered as niche and expensive ones at realistic prices and rates have been favorably impacted. Reasonable pricing and high value perception allowed Tommy Hilfiger to take part effectively in the declining luxury marketplaces. Amidst the global slow down and low expansion markets, Tommy Hilfiger has been documenting revenue growth. For example, for Fiscal Yr 2009, Tommy Hilfiger posted a revenue progress of 21% indicating brand resilience and effective positioning.
There are some garment companies in Vietnam, but there are no companies that may be examined as the primary fashionable agencies in developing clothes and outfits. Almost the garment companies have to run their business operations in diversified aspects. They produce shirts, jackets, slacks, dresses, or even textile products, joint-venture or outsourcing and the export their products under the foreign companies' sponsorship. They don't their key competency in setting up their reputation in sophisticated design in outfits and clothes. They may be Nha Be Company, Viet Tien Company, Viet Thang Company, Hoa Binh Company, Ha Noi Company, etc. The companies' key markets will be the US and the European Union. Main specific products like Jackets, Jeans, tops, dresses. . . are rated as good quality by the company's important partners. The total value of products mainly bases on exporting (independently, or outsourcing; 70% for exporting; 30% for home distribution). They are really in the machine of planned overall economy, so Hilfiger cannot learn anything from them.
Tommy Hilfiger, through its subsidiaries, designs, options and markets creator men's sports activities wear and kids wear, including woven tee shirts, knit shirts, trousers, swimwear, sweaters, outerwear and athletic wear. These offerings are complemented by series of men's personalized clothing, dress tops, denim products, neckwear, socks, underwear, belts, small leather goods, sleepwear, robes, golf wear, feet wear, sunglasses, prescription eyewear, women's casual wear and men's and women's fragrances, amongst others, bearing the Tommy Hilfiger trademark, which can be produced and sold pursuant to certain licensing arrangements. Tommy Hilfiger is the company's principal designer and provides leadership and direction for all areas of the look process. The business's sports wear is designed to combine classic American styling with original details and fit to provide time-honored basics a fresh and updated look for customers who desire high quality, developer clothes at competitive prices (Daily Media Record, 2003).
Hilfiger may utilize its Talents (SWOT Analysis) as the strong technique to survive the following:
Brand equity and superstar endorsement: Tommy Hilfiger enjoys strong brand equity across the world, which has been helping the company to withstand your competition.
Global occurrence: Tommy Hilfiger currently distributes its products in over 65 countries including THE UNITED STATES, European countries, Central and SOUTH USA, and Asia Pacific. The business provides its huge products portfolio through department stores and specialty stores worldwide.
Tommy Hilfiger has been setting up its brand-name in progress with utilizing its funding in investment, so that it has been getting good return on investment (ROI). Although there were the effects of financial recession on a lot of economic establishments and the customers' usage, Tommy Hilfiger is still on the remarkable progress using its strategies and position.
To summarize, as said in the event study in the textbook that, "Future expansion Hilfiger is based both on development internationally and revamping little by little growth in the United States. As Hilfiger's CEO, Fred Gehring, worries that so many changes for Europe create both a nonuniform image and an addition to costs. He harmonizes both marketplaces with most designs via Europe can be provided for the American consumers because its designers purpose at the American traditional style which can be just a bit more grown-up and sophisticated".