Strolling down a busy street, many of us are often captivated by the allure of luxury brands like Sephora and Tommy Hilfiger. These iconic brands aren’t just retailers but a beacon of style and success, representing the pinnacle of the luxury goods market.
Interestingly, the global luxury goods market is on the verge of reaching US $418.80 bn by 2028. This highlights the immense growth and potential of this industry. In such a competitive landscape, understanding the strategies that have pushed these brands to the front becomes crucial for aspiring luxury brands.
While we have already discussed the success strategies of the cosmetic retail brand Sephora, let’s delve into exploring how the lifestyle brand Tommy Hilfiger has established itself as a trendsetter.
As Thomas (Tommy) Hilfiger says, “In designing a lifestyle brand, you have to know more than just designing clothes.”
In this case study, by analyzing its approach, we aim to provide valuable insights and inspiration for lifestyle brands aspiring to carve their path to success in 2024 and beyond.
Tommy Hilfiger – A Brief Overview
Tommy Hilfiger is a lifestyle brand synonymous with quality, luxury, and timeless style. Founded in 1985, the luxury brand has been associated with the preppy lifestyle for almost four decades globally. What started as a small store of men’s clothing has now grown into one of the most recognizable brands having 2000 stores in 100 countries.
Tommy Hilfiger offers a wide range of carefully crafted products. It caters to the discerning tastes of individuals who are captivated by fine craftsmanship and beautiful design. From perfectly tailored suits to stylish accessories, each piece showcases the brand’s dedication to creating high-quality items that radiate sophistication and style.
Tommy Hilfiger continues to redefine luxury, symbolizing timeless elegance and ideal taste. With each new collection, the brand captivates its audience, leaving a lasting impression and solidifying its status as a true fashion powerhouse.
Also Read: Required Tech Stack to Develop Fashion Brand Websites like Tommy Hilfiger
Tommy Hilfiger – A Glimpse Of Its History
Tommy Hilfiger launched the brand with a vision of creating the “new American classics” by redesigning and modernizing the preppy, outdated style of his childhood. He got his break and opened the Tommy Hilfiger Corporation in 1985 with the help of a businessman, Mr. Mohan Murjani.
In the 90’s, Tommy Hilfiger became a household name in the US with its strong association with the pop music industry. During this era, Tommy played a big role in modernizing the classic “preppy” style and hip-hop fashion.
Collaborating with famous artists and celebrities, such as Michael Jackson, J.Lo, and Beyonce, who promoted his line gave him much-needed global exposure. Finally, Phillips-Van Heusen (PVH Corp.) acquired the Tommy Hilfiger Corporation in 2010.
Tommy Hilfiger – The Glorifying Achievements
The luxury brand experienced remarkable revenue growth from 2020 to 2021, which increased from $3.63 billion to $4.7 billion. In 2023, Tommy’s revenue increased 4% to $2.363 billion compared to the prior year period. The financial growth of the renowned luxury brand is indisputably beyond question.
Besides, Tommy Hilfiger has several feathers under its cap, including:
- the Menswear Designer of the Year Award by the Council of Fashion Designers of America in 1995.
- The Designer of the Year Award by the Parsons School of Design in 1998.
- The International Designer of the Year by GQ Magazine Germany in 2002,
- The Geoffrey Beene Lifetime Achievement Award by the Council of Fashion Designers of America in 2012.
- The Legends Award from the Pratt Institute.
USPs That Made Tommy Hilfiger Stand Out
Here are some key features that helped Tommy Hilfiger become the epitome of fashion:
Classic Designs
The core pillar of Tommy’s glory is its classic designs. The timeless pieces Tommy offers never go out of style, which makes them a must-have in every wardrobe. From its iconic polo shirts to the signature logo, or its elegant blazers, Tommy’s designs truly reflect refinements and sophistication.
High-Quality Material
The luxury retailer prioritizes top-quality materials for its products, ensuring both aesthetics and durability.
From luxurious fabrics such as premium cotton and silk to durable hardware like sturdy zippers and buttons, every detail is carefully chosen. This makes investing in Tommy Hilfiger a wise decision for anyone who values quality in their wardrobe.
Attention To Detail
The brand’s commitment to attention to detail shines through in its designs, where every piece is crafted to perfection. Intricate stitching and precise tailoring ensure clean execution. This dedication to precision and perfection ensures a superior fit and comfort, which is what every customer prioritizes. Tommy Hilfiger is a confidence in itself, ensuring every garment is thoughtfully made with utmost care and expertise.
Versatility
Although it kicked off with men’s jeans, the luxury retailer today offers a wide range of clothing and accessories for both men and women. From casual wear to formal wear, there’s a collection for every occasion. This immense versatility in styles, patterns, and colors allows customers to express their personal style, defining their unique personality.
Inclusivity
Tommy Hilfiger stands out as an inclusive brand, offering a diverse selection of sizes and styles to suit individuals of all body types. Recognizing that fashion should be accessible to everyone, they proudly offer an extensive range, including plus, petite, and tall sizes. Embracing diversity and promoting body positivity, Tommy honors individuality, empowering people to embrace their unique selves and feel confident.
Sustainable Practices
As a global fashion brand, Tommy Hilfiger has always contributed to the environment through sustainable practices. They focus on the use of eco-friendly materials, such as organic cotton and recycled polyester, to reduce their carbon footprint.
The brand also ensures ethical production, collaborating with suppliers who uphold fair labor standards. By prioritizing sustainability, Tommy Hilfiger creates stylish, high-quality clothing while promoting a more sustainable and responsible fashion industry.
Read More: How to Create Tommy Hilfiger like online Brand Web Store
Growth Strategy That Led Tommy Hilfiger To Success
Moving on with Tommy Hilfiger’s success, it is essential to note the growth strategies that made this label recognizable and successful. Here are the key aspects of Hilfiger’s growth strategy:
Promotional & Marketing Strategies
The luxury clothing brand leverages multiple online and offline channels to boost awareness and enhance its presence. Successful retail brands are often keen to understand their customers’ needs and anticipate their shopping behavior. For this, they rely on making data-driven decisions and adhering to the latest eCommerce trends. Tommy’s marketing strategy is deeply rooted in these values and tactics.
For offline marketing, Tommy utilizes classic newspaper and magazine ads and billboards. Moreover, to boost its online presence, the brand focuses on the omnichannel customer engagement approach, utilizing social media ads, emails, push notifications, and many more. Leveraging these tactics, the brand is able to drive 14.9 m visits every month on its website.
Another noteworthy aspect of Tommy’s marketing strategies is its collaborations with popular faces. The brand partners with celebrities as ambassadors and spokespersons. These collaborations bring a unique and fresh perspective to the brand’s designs, attracting a diverse audience and creating buzz in the fashion industry.
Digital Experiences
While this strategy isn’t groundbreaking, Tommy brilliantly incorporates it into its approach. With a robust online presence, the brand offers convenient features like virtual try-ons and personalized recommendations. Incorporating virtual and augmented reality in marketing campaigns and fashion shows, Tommy showcases its innovative spirit.
Bridging the gap between online and brick-and-mortar stores, the brand adopts an omnichannel approach. It implements initiatives like the Digital Showroom, where customers can purchase through touchscreens, and the “Click & Collect” option caters to evolving customer preferences.
By staying updated with eCommerce best practices, the luxury brand ensures a delightful shopping experience while embracing digital transformation.
Apart from the extensive use of technology in its digital approach, Tommy enhances brand loyalty and customer retention with powerful customer engagement tools.
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Social Responsibility
Apart from sustainable practices, the lifestyle retailer also takes social responsibility seriously. The brand supports numerous charitable organizations such as the World Wildlife Fund and Autism Speaks using its platform and resources for bringing attention to important causes.
Tommy Hilfiger’s program, “Tommy Cares” focuses on empowering young individuals to become leaders and make a positive impact in their communities.
Related Blog: Explore and analyze the latest fashion trends from Tommy Hilfiger.
Target Markets
The buyer persona for a lifestyle brand like Tommy is a specified audience group seeking luxury, value and social confidence in their purchases. Hence, the brand’s growth strategy focuses on demographic variables, primarily targeting male and female consumers aged between 25-40 from the upper-middle class.
Pricing & Distribution
Tommy, as it is known for its lifestyle appeal, maintains a commitment to accessibility and affordability. Its global distribution comprises Europe and Asia, with headquarters in Amsterdam. The brand has flagship stores in seven countries and forty-four anchor stores located in major cities across the globe.
Understanding The Pricing Structure Of Tommy Hilfiger
It’s obvious: with high-quality and voguish clothes come hefty price tags. This is where Tommy Hilfiger triumphs by offering the customers a range of purchasing options across different price points.
One of the ways the lucrative brand maintains competitive pricing is through its strategic partnerships and collaborations. With these partnerships, the brand is able to provide limited-edition collections at a lower cost. This makes their products more accessible to a wider audience.
- Material Sourcing: The global sensation sources top-quality materials for its clothing, which make up a significant part of the final product price.
- Design and Production: The source material is sent for the design and production of garments. This involves costs for designers and the tailors, and the manufacturing process, which includes sewing, cutting, and quality checking.
- Marketing and Branding: The luxury clothing brand strategically invests in marketing and branding to maintain its prestigious image. The costs for promotional activities include advertising, digital marketing, public relations, and events These costs are further divided into the per product price.
- Distribution: The cost of distributing products across various offline and online channels includes shipping, handling, and storage.
- Retail Markup: Retailers apply a markup to the cost price of Tommy’s products to cover expenses like rent, and staff salaries, and to generate profit. Ultimately, this markup determines the final price paid by customers.
- Discount & Sales: The limited-time occasional discount and sales campaigns of Tommy Hilfiger attract more customers and increase sales. Customers can buy Tommy’s products at reduced prices.
Tommy Hilfiger Success Story: The Key Takeaways For Aspiring Retail Companies
The achievements and success of Tommy Hilfiger are not a result of luck. Instead, it has achieved all of these with a consistent and exceptionally executed business growth strategy, successfully replicated online.
Here are the key takeaways from its success story for aspiring businesses like you:
Brand Identity and Consistency
Tommy has built a strong, recognizable brand identity that aligns with its target audience. Aspiring retail businesses should strive to develop a distinct brand voice and visual identity that sets them apart from in a bustling market.
Omnichannel Approach
The global sensation has successfully integrated its offline and online channels, offering features like “click and collect” to cater to modern shopping preferences and behaviors. You should prioritize an omnichannel approach to offer a seamless shopping experience across all touchpoints.
Innovation and Adaptability
Tommy has embraced technology, like interactive digital systems and digital trends to improve the customer experience. As an aspiring retailer, you should stay abreast with the latest technology and be willing to adapt your strategies to meet evolving customer needs.
Customer-Centric Approach
Big brands like Tommy Hilfiger prioritize customer needs, and preferences, to develop their new products, feature sets, marketing campaigns, and more. Businesses should focus on understanding their customers and delivering tailored experiences to build loyalty and drive sales.
Marketing Mix
Another key lesson to learn from Tommy Hilfiger is “marketing mix” – carefully balancing the four P’s of marketing, i.e., product, price, place, and promotion strategies. The brand focuses on designing high-quality, stylish products at competitive prices, distributed through both physical stores and online channels. Their promotional efforts, which include marketing campaigns and innovative digital initiatives, effectively reach their target audience.
As a retailer, you can learn the importance of a holistic marketing mix strategy that aligns with their brand identity and customer preferences to drive success.
Establish A Luxury Brand Like Tommy Hilfiger With iTechnolabs
The case study of Tommy Hilfiger majorly reflects on its marketing strategy and digital transformation of the brand. Leveraging these two approaches and aligning them with customer preferences and behaviors has helped the luxury brand succeed.
As a leading tech and digital marketing company, we at iTechnolabs can assist businesses like you in building luxury brands through our diverse range of services.
Here are some ways we can help:
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Building a strong brand identity
Our team of analysts can help you build and implement a comprehensive strategy by understanding your core values and target audience. This includes developing a consistent brand voice and visual identity (such as a logo and website) across all digital platforms, creating compelling content that resonates with your target audience, and using digital channels for brand promotion and engagement.
With our digital marketing services, we can help you enhance the online presence of your brand. This includes social media marketing, search engine optimization, email marketing, and influencer partnerships to reach a larger audience and drive sales.
Given the importance of e-commerce luxury brand establishment, we can aid in creating a visually appealing and user-centric website for your business. By incorporating features such as easy navigation, personalized shopping experiences, and a secure payment gateway, we will ensure your e-commerce website helps you achieve the desired goals.
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Content Creation
Creating and spreading the right brand message is critical to brand awareness and recognition. Hence, our content curators will create high-quality, engaging content that aligns with your brand’s image and values.
From product descriptions and blog posts to promotional videos, iTechnolabs can help create engaging content for your luxury brand.
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Customer Engagement
Without a substantial loyal customer base, building a successful luxury brand like Tommy Hilfiger is impossible. With our extensive range of services like loyalty programs, email marketing, and personalization, we can help you engage with customers and ensure their satisfaction.
If you wish to learn more about how we can aid our luxury brand-building journey, our experts are always available to introduce you to the perks of omnichannel marketing that generates optimal results based on actionable insights. Get in touch for more information today!
Frequently Asked Questions
What makes Tommy Hilfiger successful?
Commitment to quality, a customer-centric approach, consistent innovation, and a powerful strategy of marketing mix – all these make Tommy Hilfiger a successful brand in the fashion industry. Other factors that contribute to its unmatched success are:
- Competitive Pricing
- Affordability through different price points
- Sustainability
- Style and design
Who is Tommy Hilfiger’s target audience?
Tommy Hilfiger targets consumers aged between 25 and 45 with an annual household income of over $50,000.
What is Tommy Hilfiger known for selling?
Renewing the essence of American style, the brand is known for its denim wear and sports collection of classics made modern.
What is the rank of Tommy Hilfiger?
The brand ranks at #8 in Global Top 100 Brands.
