Did you know? In 1989, Tommy Hilfiger left Murjani International and began searching for money to expand his own private label.
Tommy Hilfiger is a popular brand, not only in the USA, which is its primary market. It continues to be the top-selling brand in casual wear in countries around the globe. This makes it the top designer brand in the world. Through its designs and styling, the company has helped bring American culture to the rest of the world. Its annual revenue was 670 million dollars USD.
This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct a SWOT analysis by Tommy Hilfiger.
Tommy Hilfiger At A Glance – Tommy Hilfiger SWOT Analysis
Company: Tommy Hilfiger Inc. | PVH Corp.
Founders: Tommy Hilfiger
Year of establishment: 1985
CEO: Martijn Hagman
Headquarters: Amsterdam, Netherlands
Employees (Dec 2020): 16,000
Ticker Symbol: PVH
Annual Revenue (Dec 2020): US$9.91 billion
Profit net income (Dec 2020): US$4.71 billion
Products & Services: Tommy Hilfiger | Hilfiger Denim brands | Tommy Hilfiger Tailored | Men’s, women’s and kid’s sportswear | Accessories | Footwear
Company Website: Tommy Hilfiger USA
Tommy Hilfiger Competitors
Tommy Hilfiger SWOT Analysis – SWOT Analysis Of Tommy Hilfiger
SWOT Analysis Of Tommy Hilfiger analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Tommy Hilfiger SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Tommy Hilfiger SWOT Analysis. Below Is The Detailed SWOT Analysis Of Tommy Hilfiger.
Tommy Hilfiger Strengths – Tommy Hilfiger SWOT Analysis
1. Leadership: The brand’s success is due to the design prowess, creative vision, and the never say die attitude of its leader Tommy Hilfiger. Tommy began by making custom shirts and selling them in New York. His strong business acumen helped him grow the brand from a few shops called People’s place to a large multinational corporation.
2. Products for everyone: Tommy Hilfiger has something for everyone. They sell men’s, women’s and children’s clothing. The brand offers a variety of designs that are American-inspired, including sportswear, denim and fragrances. The brand offers designs that are modern, casual, and contemporary for all ages and tastes.
3. Learning from the trends: Tommy Hilfiger wasn’t one of the first to set trends, but the strategy was to look at what people were wearing, and then create new designs that were inspired by them. Tommy tried to incorporate key lessons from historical fashion trends.
4. People: The success of Tommy Hilfiger comes down to its people, not their designs. Tommy Hilfiger hires highly talented people, but most of its designers are young. Their designs are unique and fashionable because of this.
5. Managing business and creativity: Tommy Hilfiger has been able to successfully balance business and creativity. While the creative aspect of the business made the designs unique and original, the business orientation ensured that the business grew its network and increased revenues over the years.
6. Deep Commitment To Sustainability: Tommy Hilfiger believed in the future, and was of opinion that the company’s success was determined by how much it can return to society. Tommy Hilfiger supports green initiatives such as energy-efficient lighting, interiors and rainwater recovery.
Tommy Hilfiger Weaknesses – Tommy Hilfiger SWOT Analysis
1. Prices: Tommy Hilfiger’s clothing and other merchandise are expensive and may not be accessible to all. They therefore focus on the high-income segment.
2. Maintaining the brand identity: Tommy Hilfiger has always been a unique American brand. This image has been promoted consistently by the company, which has helped to drive the brand’s growth. The company still has to spend a lot to maintain this image.
3. Low penetration within economy segments: Tommy Hilfiger is a premium brand that has always been a favorite choice for those with higher incomes. Low penetration in lower income segments means that the company’s margins are low.
Tommy Hilfiger Opportunities – Tommy Hilfiger SWOT Analysis
1. Changing customer preference: Customers know what they want and have created many niche categories to meet those needs. There are many sub-categories within a category such as jeans. These include skin fit, loose fit, tailor cut and bucket. These categories offer new opportunities for Tommy to expand their product range.
2. Growing Protectionism: Hilfiger Tommy should hedge the risk against growing protectionism ranging from – storing data into international market to diversifying risk by operating into countries at different economic cycle.
3. US China Trade Relations: Hilfiger Tommy has focused on China for its next phase of growth. But there is growing tension between US China trade relations and it can lead to protectionism, more friction into international trade, rising costs both in terms of labor cost and cost of doing business.
4. Credit Binge post 2008 Recession: Easy access to credit can be over any time, so Hilfiger Tommy should focus on reducing its dependence on debt to expand. The party has lasted for more than a decade and rollback from Fed can result in huge interest costs for Hilfiger Tommy.
5. Government Regulations and Bureaucracy: Hilfiger Tommy should keep a close eye on the fast changing government regulations under the growing pressure from protest groups and non government organization especially regarding to environmental and labor safety aspects.
6. Increasing bargaining power of buyers: Over the years the bargaining power of customers of Hilfiger Tommy has increased significantly that is putting downward pressure on prices. The company can pursue horizontal integration to consolidate and bring efficiencies but I believe it will be a short term relief. According to Raffaella Sadun, Hanoch Feit, Vaibhav Gujral, Gerard Zouein , Hilfiger Tommy needs fundamental changes to business model rather than cosmetic changes.
7. Threats of New Entrants because of Reducing Costs and Increasing Efficiencies: As Hilfiger Tommy can leverage low cost of reaching customers using social media and e-commerce, so can the competitors – both local and international competitors.
Tommy Hilfiger SWOT Analysis Template
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