Tommy hilfiger brand research

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Transcript of Tommy hilfiger brand research

HABIBIEYANTO ILMAWANM T P A N B R O T H E R S B A T C H 1

COMPANY OVERVIEW

As one of the world’s leading premium lifestyle brands, Tommy Hilfiger delivers superior styling, quality and value to consumers worldwide. The brand celebrates the essence of Classic American Cool and provides a refreshing twist to the preppy fashion genre.

Since its debut in 1985, the Tommy Hilfiger Group has become a US$ 4.6 billion apparel and retail company by offering consumers a breadth of beautifully designed, high quality products including men’s, women’s and children’s apparel, sportswear, denim, and a range of licensed products such as accessories, fragrances and home furnishings.

Under the leadership of Founder Tommy Hilfiger and Chief Executive Officer Fred Gehring, the brand can be found in leading department and specialty stores, as well as in its own expanding network of freestanding retail stores, worldwide. When PVH Corp. (NYSE: PVH) (then known as Phillips-Van Heusen Corporation) acquired the Company in May 2010, Gehring also assumed the role of CEO of PVH’s international operations, while Hilfiger remains the Company's Principal Designer and provides leadership and direction for all aspects of the design process.

Tommy Hilfiger today has become a global brand with strong recognition and a distribution network in over 90 countries and more than 1,000 retail stores throughout North America, Europe, Central and South America and Asia Pacific.

SHORT HISTORY

TOMMY HILFIGER Born the second of nine children in Elmira, New York, Hilfiger’s career in fashion

began as a high school student in 1969 when he opened a small chain of stores called People’s Place with just $150. His goal was to bring fashion from New York and London to upstate New York. Self taught, he soon began designing for the boutiques he had always admired. In 1979 he moved to New York City to pursue a career as a full-time fashion designer. In New York, Hilfiger caught the eye of Mohan Murjani, a businessman who was looking to launch a line of men’s clothing and believed that Hilfiger’s entrepreneurial background gave him the unique ability to approach men’s fashion in a new way. With Murjani’s support, Hilfiger introduced his first signature collection in 1985 by modernizing button-down shirts, chinos, and other time-honored classics with updated fits and details. The relaxed, youthful attitude of his first designs has remained a distinctive hallmark throughout all of Hilfiger’s subsequent collections.

For 25 years, Tommy Hilfiger has brought classic, cool, American apparel to consumers around the world. His designs give time-honored classics a fresh look, and his discerning taste has provided the foundation for the growth of a global brand.

Under Hilfiger’s guidance, vision and leadership as Principal Designer, the Tommy Hilfiger Group has become one of very few globally recognized designer brands offering a wide range of American-inspired apparel and accessories.

SHORT HISTORY -CONT

Through his creative efforts as a designer, and in working on a series of bold marketing campaigns, Hilfiger has both influenced and developed lasting relationships with a wide-range of cultural influencers and trendsetters. In 1985, Hilfiger hired legendary ad man George Lois to develop a billboard to place in the center of New York’s Times Square. The now famous “hangman ad” ignited the designer’s career and launched a dynamic and productive relationship between Hilfiger and Lois. In 2007, Hilfiger and Lois collaborated on the book Iconic America: A Roller-Coaster Ride through the Eye-Popping Panorama of American Pop Culture, which presents a mosaic of over 400 iconic and iconoclastic images from the melting pot of the American experience. In the 1990’s, Hilfiger became a pioneer in the industry by featuring emerging musical talent such as Britney Spears and Lenny Kravitz in his advertising campaigns.

As Hilfiger’s designs merged with popular culture, he began to extend his company’s distinct brand message across a variety of mediums and platforms. Celebrating the long association between Hilfiger Denim and the music world, in 2009 the Company launched the brand’s online evolution – www.hilfigerdenim.com. The website allows visitors to peruse the latest cutting-edge Hilfiger Denim collection, while enjoying the music behind the designs.

HONORS AND AWARDS

Hilfiger’s diverse achievements in business, retail and fashion have earned him a variety of distinguished awards. In 1998, Parsons School of Design in New York City honored him with their Designer of the Year award, as did GQ magazine for their annual “Men of the Year” issue. In 1995 he was named Menswear Designer of the Year by the Council of Fashion Designers of America (CFDA). That same year, he received VH1’s “From the Catwalk to the Sidewalk” award at their annual Fashion and Music Awards. He has also won several FiFi Awards, the fragrance industry’s most illustrious honor. In November of 2002, he was selected as GQ magazine’s International Designer of the Year award recipient in Germany. That same month, the Drug Abuse Resistance Education (D.A.R.E.) organization presented Hilfiger with the Future of America Award, D.A.R.E.’s highest honor, for his philanthropic efforts for America’s youth.

HONORS AND AWARDS -CONT

In 2006, GQ Spain honored Hilfiger as Designer of the Year, while the Hispanic Federation awarded him the Individual Achievement Award at their annual gala the following year. In 2008, Hilfiger received the coveted Bambi Award for the fashion category during the 60th annual prestigious Bambi Awards ceremony, while Women’s Wear Daily listed him as the #1 Designer and #16 Brand in their annual ‘100’ list. In 2009, he went on to receive the respected UNESCO Support Award for his philanthropic efforts throughout the years, as well as the Marie Claire Lifetime Achievement Award. Hilfiger was also awarded the Alpha Award of Honor from the U.S. Alpha Phi Alpha Fraternity for his dedication to serving the community. In 2010, Tommy Hilfiger was honored with the Legends Award by Pratt Institute and in 2011, Philadelphia University awarded him the Spirit of Design Award and the Fresh Air Fund honored him for his contributions to Camp Tommy.

MANAGEMENT

MARKET TARGET

QUINTESSENTIAL AMERICAN STYLESince the launch of the Men’s Sportswear

collection in 1985 the Tommy Hilfiger product offering has expanded to encompass a complete premium lifestyle.

The Tommy Hilfiger flag logo is recognised around the world as the symbol for high quality, quintessential American style with a classic, cool twist. Specifically targeting the 25 to 45 year old consumer, the Tommy Hilfiger label appeals to those seeking a new interpretation on classic American style.

THE COLLECTION

The Tommy Hilfiger collection consists of casual sportswear and accessories for men and women that reflect the classic American cool brand mission.

Products include men’s, women’s, and children’s apparel, footwear, swimwear, accessories, fragrances, home and bedding products, and luggage. Tommy Hilfiger products are sold at dedicated retail stores, department stores and specialty stores worldwide.

Global Growth

During 2012, PVH continued to invest in its business while delivering solid revenue growth and operating margin expansion along with substantial free cash flow. By leveraging our best-in-class platforms, which encompass wholesale, retail, e-commerce and licensing operations, we seek to further penetrate our iconic lifestyle brands across new categories, existing markets, new markets and multiple demographics.

While the global macroeconomic challenges and uncertainty have continued in 2013 (and we expect them to continue) and our strategic investments in the acquired Warnaco business will add pressure to our 2013 earnings, we are optimistic about our long-term prospects. The strength of our brands and the opportunities created through the acquisition of Warnaco, coupled with the sound execution of our business strategies, should enable us to continue to drive our long-term growth and deliver improved financial returns. We believe that these opportunities will drive retail sales of our Calvin Klein, Tommy Hilfiger and Heritage Brands businesses from $16.8 billion in 2012 to over $20 billion over the next few years, and that we will be able to grow EPS in excess of 15% in 2014 and beyond on a non-GAAP basis.

Global Growth - Cont

GLOBAL SUPPLY CHAINS

Our centralized capabilities for worldwide procurement and sourcing enable us to deliver to our customers competitive, high quality and low cost goods on a timely basis. We have an extensive established network of worldwide sourcing partners that enables us to meet our customers' needs in an efficient manner and not rely on any one vendor or factory or on vendors or factories in any one country. We also operate a network of wholesale and retail distribution centers that we believe has sufficient capacity to accommodate planned growth, as well as additional brands we may license or acquire, without a significant increase in capital expenditures post-integration of the acquired Warnaco businesses. We believe that our investments in logistics and supply chain management allow us to respond rapidly to changes in sales trends and customer demands while enhancing our inventory management efficiencies.

BRAND RANKING

Rankings where listedYearPositionFashion Brands Ranked by Digital IQ ScoreBy L2 ThinkTank201310Specialty Retail Ranked by Digital IQ Score By L2 ThinkTank201335Fashion Brands Ranked by Digital IQ ScoreBy L2 ThinkTank201210

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