Tommy Hilfiger SWOT analysis – SWOT analysis of Tommy Hilfiger: A high-end, upmarket brand, a down-market American brand that offers clothes, accessories, and other products. Tommy Hilfiger Corporation was established by the famous designer Thomas Hilfiger in the year 1985. Tommy Hilfiger is one of the most well-known brands that are popular for casual wear. the variety of items that are sold under the brand comprises kids’ clothing, men’s wear, and ladies’ wear with categories like eyewear, accessories, clothing, and many other items. They also offer luggage, shoes, bags scents, and furniture for homes through a chain of 1400 retail stores spread across 90 countries. A private equity firm called Apax partners bought the company in 2006.
A well-known brand, not only in the USA which is its main marketplace, Tommy Hilfiger continues to the top of sales charts for casual clothing across markets all over the world, which makes it the top designer brand. The brand that has introduced American culture all over the world via its style and design has recorded a profit of 670 million dollars.
Tommy Hilfiger fun facts: In 1989, Tommy Hilfiger left Murjani International and began searching for money to expand his own private label.
About Tommy Hilfiger – SWOT analysis of Tommy Hilfiger
Company: Tommy Hilfiger Inc. | PVH Corp.
CEO: Martijn Hagman
Founder: Tommy Hilfiger
Year founded: 1985
Headquarters: Amsterdam, Netherlands
Annual Revenue: USD$9.91 billion
Profit | Net income: USD$4.71 billion
Number of employees: 16,000
Products & Services: Tommy Hilfiger | Hilfiger Denim brands | Tommy Hilfiger Tailored | Men’s, women’s and kid’s sportswear | Accessories | Footwear
Website: Tommy Hilfiger USA
Tommy Hilfiger Competitors
SWOT analysis of Tommy Hilfiger – Tommy Hilfiger SWOT analysis
SWOT Analysis Of Tommy Hilfiger is brand-based. SWOT Analysis of Tommy Hilfiger evaluates the brand’s strengths, weaknesses, opportunities, and threats. Advantages and disadvantages can be attributed to internal factors while opportunities and threats can be attributed to external factors. We will be discussing Tommy Hilfiger’s SWOT Analysis. Below is the detailed SWOT Analysis of Tommy Hilfiger.
Let’s talk about Tommy Hilfiger’s SWOT assessment.
Strengths of Tommy Hilfiger – Tommy Hilfiger SWOT analysis
- Leadership: The brand is what it is today due to the creative idea and the never-say-die spirit of its founder Tommy Hilfiger. Tommy began by creating custom and reselling shirts in New York in his hometown. Tommy then utilized his strong business acumen to build the business from a tiny range of shops known as the People’s Place to a multi-national business.
- Products for all: Tommy Hilfiger is a brand that caters to all ages and includes women’s clothing, men’s clothing, and kids’ clothing. The brand has a wide range of styles that are extremely American in style in areas like denim, sportswear scents, home furnishings watches, etc. The designs that are casual, contemporary, and modern are suitable for everyone’s age and preferences.
- Understanding fashion trends: Tommy Hilfiger was never one to create trends, but the method that the company adopted was to study what the people were wearing and then apply those trends to new styles that were derived from these trends. Tommy also attempted to incorporate the key elements from fashion trends of the past.
- Humans: The success of Tommy Hilfiger is just as much due to its staff as its designs. Tommy Hilfiger not just takes extremely creative individuals, but also makes sure that the majority of its designers are younger and fresh. It is a guarantee the designs of Tommy Hilfiger are distinctive and modern.
- The balance between business and creativity: Tommy Hilfiger has always been able to balance the creative and business aspects. The creativity aspect of the company made sure that its designs are unique and original, and the company focus ensured that the company expanded its reach and contributed to its revenue as time passed.
- The deep Commitment to sustainability: Tommy Hilfiger always believes that the future was ahead of it and believed that the viability of the company was contingent on the amount it would return to society. A few of the initiatives that are green-backed by Tommy Hilfiger are energy-efficient lighting and furnishings as well as rainwater recycling and sustainable textiles.
Weaknesses of Tommy Hilfiger – SWOT Analysis Of Tommy Hilfiger
- Price: The clothing and other products of Tommy Hilfiger are priced at a premium, and the brand might not be affordable for people with a lot of money. The brand is therefore focused on the wealthy.
- Maintaining brand image Image of the brand: Tommy Hilfiger is always recognized as a fun and distinctive American brand. The brand has always been promoted using a method that has ensured this image has been embraced and has contributed to the development that the company has enjoyed. Today, the company needs to spend a significant amount of money in order to keep its image.
- In the economic categories: Tommy Hilfiger has been priced high and it has always been a top option for the more affluent segments. The brand’s penetration in the lower-income group is not high, which means that the company’s margins are not as high.
Opportunities of Tommy Hilfiger – Tommy Hilfiger SWOT analysis
- Changing preferences of customers: Customers are clear about their preferences and there has been a myriad of niche categories that have been born out of specific needs. For example, within one category, like jeans there exist many sub-categories such as loose fit, skin fitted, cut to tailor, and bucket, among others. The existence of these categories is a new segment for brands such as Tommy.
Threats of Tommy Hilfiger – SWOT analysis of Tommy Hilfiger
- Competitors: The main competitors of Tommy Hilfiger include Wrangler, Lee, Levis as well as UnitedColors of Benetton, etc.
- Internet retailers: There is a rise in online retailers. Many of these companies, as well as marketing their brands, offer private label products that are also a brand new type of competition.
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Overview Template of Tommy Hilfiger SWOT analysis
On the study of the SWOT Analysis of Tommy Hilfiger, we have known that it is one of the most valuable fashion brands in the world. It has been learning from the different trends and has a wide variety of products in the market. The changing technology landscape and changing customer preferences create an opportunity for the company to grow in the market. But even with such advantages, it has some flaws in the market with stop its growth.
It uses a very high pricing strategy and due to the low inflation in the economy, it is difficult for the customers to buy the products. The US-China trade relationship and increasing costs due to ecological guidelines create a threat to the company. However, it can eliminate some of the negative factors with the use of advanced digital marketing. As we can see most people nowadays are on social media thus it is essential for every company to have a digital presence through digital marketing. This will help them to target its customers with ease.
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