Hilfiger made a decision to establish higher price in European countries than in the U. S. because the customer's preferences and preferences are different in both market segments. Hilfiger has experienced some different countrywide preferences. They do not brain to pay more $50 more than the highest priced Hilfiger's t-shirt in the U. S. So price strategy of Hilfiger must be place by concentrating on the local responsiveness. Hilfiger has modified its product to the European preference for thinner looking skinny jeans and smaller logos on tee shirts. Hilfiger has generated a line of more luxury items such as leather jackets and cashmere sweatshirts for Italian market. Additionally transportation cost of the merchandise also makes an escalation in the Hilfiger's product price in Western european market.