A Critical Study on Tommy Hilfiger in Europe and Evaluation of its coping Mechanism in Adapting to European Fashion Market
Chapter 1
Introduction
In a volatile and every shrinking global economy that has started before this century, businesses from all sectors – from technology, pharmaceuticals, construction, architecture, communications up to arts – has been faced with the inevitable and crucial problem of adapting from the multi-faceted culture of different regions they engage their businesses in and the legal systems that work here. This cannot be avoided.
Then there are basically two cultures known: the West and the East or rather the Occidental and Oriental Culture. But doing business with the Western countries even if you're business comes from West, proves to be tricky. Each Western region still has differences from their neighboring regions which before had been clustered as same with their culture.
This can be seen remarkably in the Fashion business where US-based fashion companies that sell apparels and retail ready to wear clothes are being confronted with when they sell their wares in the European market, particularly the UK
It is because Europe alone has over 30 different countries. Then within Western Europe , there are already ten different languages spoken, mainly English, French, and German. Each of these countries has its own legal and taxation system. Add to that the introduction of the Euro that somehow removes some complexity but still the problems with the local currencies exists since not all countries in Europe are within the Euro sector.
The living standards vary in Europe that even within Western Europe there are big differences between living standards. There are also cultural differences within Europe itself, like habits, food, events, and tastes for fashion and so on. Within the European market there are many local competitors to put the market more complex, which unavoidably increases competition across the continent. In Europe there are no big, pan-European department stores. There are a lot of local retail structures something the foreign-based apparel company has to contend with.
Apparel companies like Tommy Hilfiger has to contend with all of these factors to stay afloat and be ahead of the pack taking a chance to corner the fashion market in Europe, particularly in UK
In dire need to expand their market in the globalize economy, Tommy Hilfeger in Europe needs to upgrade, cope, adjust and restructure their thinking of what is fashionable according to the fashion sense of European taste. Helpful will be the knowledge in the issue on the emerging fashion trend in the retail market for ready to wear merchandise in the European scene.
This proposed study will provide a theoretical framework with which to see how a US-based apparel company can maneuver itself in making a niche for itself in the European fashion market through knowledge on the prevailing market in the region, adjustment and adaptation on its fashion idiosyncrasies, with all the cultural aspects in consideration.
There will also be a comparative study of different US-based apparel companies operating in Europe that for a time have been getting favorable positive market share in the region.
Conceptual Framework
This study will utilize the model of competitive advantage to explore, explain and analyze the dynamics of the fashion industries in Europe and also relation on apparel companies' to adjust, adapt, establish or improve its presence in the European, particularly UK, fashion market.
A cross-sectional study will be made on different apparel companies operating in European countries, particularly UK Europe and their different approach on the market. Consequently, the theoretical debate on the kind of strategies that would be most efficient and competitive in the market would be evaluated.
This paradigm was chosen for the study because of its dynamic approach on the topic of persistence and advantage among contenders for market supremacy and competitiveness. Competitive advantage discusses the condition which enables an apparel company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.
Primarily, it deals with the concept of change, adaptation and how fashion companies are able to cope up with it and get the bigger share of the market. Business pundits have been talking about change and adaptation as the key to success and survival for at least two decades in this business of selling apparels. It is equally clear that the rate of change is getting faster. And adaptation to the market and consumer's fashions taste is the key for success. But there's a deeper current than mere adaptation to the market – it is how well fashion-company adapt very well that really matters in this area.
This cross-sectional study[1] will utilize the data available on these five prospective apparel companies:
Tommy Hilfiger Corporation. The Group's principal activity is to design, source and market men's and women's sportswear, jeans wear and childrenswear. The Group operates in three segments: wholesale, retail and licensing. The wholesale segment consists of the design and sourcing of men's, women's and childrenswear for wholesale distribution. The retail segment include operations of the Group's outlet, specialty and flagship stores. The licensing segment licenses the Group's trademarks for specified products in specified geographic areas. The Group also provides other products including fragrances, footwear, home furnishings and other accessories. At 31-Mar-2002, the Group operates 110 outlet stores and 53 specialty retail stores. The Group also has operations in Canada and Europe . In fiscal 2002, the Group acquired T.H. International N.V. Wholesale clothing distribution accounted for 77% of fiscal 2002 revenues; retail clothing distribution, 20% and licensing, 3%.
Lacoste – Short of couple of decades to reach a century as one of the oldest apparel company operating in Europe since launched in 1933, with an estimated 200 EM profit per year, Lacoste's products are best known and popular for the casualness of its products and the consistency it has built through its long decades of existence. Though it still has to expand a little bit since it operates in a very regional territory and the clothes/product it offers are so narrow in choices consumers have not enough products to choose from what it offers.
Levi's – Probably the most successful apparel company of the century worldwide with an earning of 1,240 EM each year in Europe alone. First launched in the European market in 1959 and from then on never looked back as one of the best selling apparel in Europe . Best known for the consumer's awareness of its product and denims sales that supports a huge chunk of its sales. The only trouble with the company is trade relations and a repositioning in the European market.
Mexx – Mexx apparel company is earning a modest but ahead of the pack with 380 EM in Europe . Launched only two decades ago in 1980 it is known already for its strengths in marketing and affordable price for the consumers who are mostly women. Though very regional in its operation, it needs to upgrade its products on the aspect of selling menswear.
Polo/Ralph Lauren – Polo/Ralph Lauren was launched in European fashion market during the early 80's, 1983, and quickly made a dent in the European fashion sense. In its two decades of existence in the volatile European fashion market, it is already earning 300 EM per annum, being known already as a success in the fashion business. It clothes quality is known for its consistency and stereotyped as good apparel company catering for men for its menswear products. The only downside with this company is its pricing on its products, weak selling points in womenswear and denims, and add to these is its aging client base.
Statement of the Problem:
This study will attempt to answer the following questions:
1. What are the knowledge management strategies of apparel companies particularly of those leading in the fashion market in the United Kingdom and other major cities in Europe ?
2. How do apparel companies cope up with the rapid change in the European fashion trend using knowledge about cultural and other issues in Europe ?
3. What are the effects of this knowledge on strategies on the goals, objectives and long-term plans on the apparel companies and the case of Tommy Hilfiger in Europe in particular?
4. How potent is knowledge about cultural and other issues in management of attaining of apparel companies goals/objectives, keeping up with competition on other fashion companies in the market and in accomplishing long-term management, financial goals and healthy existence of the company in the market?
Hypothesis
This study attempt to prove the following null hypothesis:
1. The higher the level of knowledge of an apparel company on the cultural and other issues in the prevailing regional environment where it operates, the greater the tendency of the compnay's success in terms of profitability
2. Conversely, the lesser the level of knowledge on cultural and other barriers where its company is set, the lower the tendency of the bank's success in terms of profitability
3. The success of the apparel industry is directly proportional to the execution of knowledge about management cultural and other issues
4. Conversely, knowledge management on cultural diversity of a region where an apparel company operates is inversely proportional to the failure of the apparel sector
Scope and Delimitation
This study will undertake the relationship between knowledge management on cultural and other barriers confronted by an apparel company in a certain region and provide the background on the understanding of how this knowledge can be used in promoting growth and profit and established the apparel company's niche in the market. A comparative study of other apparel companies will be done to find out the positive or negative result of such knowledge in cultural and other issues affecting the operation of a foreign-based apparel company in a certain region. And also to effectively analyze the extent to which companies will need such knowledge in their operation.
This study will be limited to the above-mentioned and data not relating to the specified apparel in United Kingdom United Kingdom
Significance of the Study
This study is an attempt to illustrate the significance of knowledge ini cultural and other issues being confronted by foreign-based apparel company in general and the Tommy Hilfiger in Europe in particular. This will also be an informative guide for students, professors and fashion enthusiasts on the basics of operating an apparel company in a certain region and how it is being utilized to meet goals and survive competition. Further, this analysis will be beneficial for the fashion business as well and those used for the study as a tool in improving or reforming their operational systems.
Definition of Terms:
Apparel Company – an organization that designs clothes for selling and cater to the public market with their needs for read to wear clothes, both for men and women, either jeans, sportswear, shirts, women's accessories and the like
Competitive Advantage - Condition which enables a company to operate in a more efficient or otherwise higher-quality manner than the companies it competes with, and which results in benefits accruing to that company.
competitive advantage
Sector - A distinct subset of a market, society, industry, or economy, whose components share similar characteristics.
Management - The group of individuals who make decisions about how a business is run.
Chapter 2
Review of Related Literature
This chapter tries to sort out the pre-conceived cultural and other barrier being confronted by US-based fashion companies in penetrating in the European market. In finding whether there is such an obvious cultural barrier existing in this business between the two, a definition of culture is first discussed, then several important study on culture, then followed by the cultural background of Europe . There is also a comparison, if there is a difference, between the culture of United States with that of Europe . Then a short case study on one popular and well-known US-based fashion company Tommy Hilfiger on its business life in Europe is discussed.
Are there cultural and other barriers for US-based fashion companies in introducing fashion items in Europe ? Do introduction of fashion collections for men and women like sportswear, tailored clothing and dress furnishings, athletic apparel and fragrance, jeans, accessories, and fragrance in the European market pose a great difficulty for US companies that specializes in this business? At a swift glance there seems to be a cultural difference between United States
Responding to an increasing global demand for men and women fashionable cloth designs, sportswear including junior jeans line, robes and sleepwear, socks, sunglasses, footwear, handbags, major fashion companies based in United States have been venturing in the European fashion market for a long time now.
There are many numbers of US-based corporations that exist in Europe that offer goods and services in different businesses like pharmaceuticals, car marketing, household accessories, architecture, advertising and other slew of businesses. And then there is fashion. The big question is "Is there a different kind of behavior coming from the European consumers in reacting to the fashion sense exported by United States
There might be a pre-conceived idea from some sectors that there are cultural and other barriers US-based fashion companies experience that confronts and challenge their business-sense in penetrating the European market.
First let us define culture and then look closely at culture of Europe then compare it with that of the United States
Definition of Culture
According to Simpson (cited in Trompenaars & Hampden-Turner, 1999) a fish when it is out of the water only realizes its need for water during this time. It is the same with culture; it's like water to a fish. What one regards as essential, for example material health, may not be so important to other cultures.
There are over a hundred definitions of "culture" ranging from broad to extended ones, extrapolating the myriad aspects of culture as written by Kroeber and Kluckhohn (1985).
Kanter & Corn (1994) describe culture as the collective understanding of meaning that is the core stability in society. These cultural factors fan the flames of intergroup conflict or encourage the acceptance of differences. Analysing the literature of the subject results in finding two very popular definitions.
The first is anthropological and that culture is a body learned behaviour, a collection of beliefs, habits and traditions, shared by a group of people and learned by people who enter the society. The second is by Hofstede (1991) that says it is the collective programming of the mind of one human group that distinguishes the member from another group. Culture, adds Hofstede, includes systems of values.
This suggests that culture is learned, not inherited and can be learned so as to integrate cultural differences. The elements creating this cultural programming of the mind are as follows: Language – verbal and non verbal; Religion; Economics; Politics; Social; institutions (social classes, family structure); Values; Customs; Attitudes; Manners; Education; Material items; and Aesthetics.
Some of these elements, according to Hofstede, can be observed by our senses as material items – food, buildings, monuments, places of religion cult, agriculture, markets, shops, art, language, music, manners and fashion, etc.
This outer layer of culture consists of explicit culture that is observable and called generally artefacts and products. The other elements are not so easy to perceive like norms, values, customs and attitudes. They are called the middle layer of culture.
The Culture of Europe
In several cross-cultural studies done by various scholars, Europe 's culture has been assessed and imbues with certain characteristics, which is important and vital in doing business and interacting with them.
An early study by two American anthropologists Kluckhonh & Strodtbeck's (1961) explained cultural similarities and differences in terms of a number of fundamental dilemmas that all societies face. What they find as the core of European's culture are:
1) relationship to nature which can be perceived as subjugation, harmony or mastery of nature. This society is convinced that there is the supremacy of the human race in the World and that is why people can harness the forces of nature. This attitude can be observed in the English-speaking nations (like Britain
2) human relationships -- are perceived as individual, lineal called hierarchical, or collateral – collectivist. Europeans are individual who believe that an individual human being should be independent. Individuals take responsibility for their own actions and behaviour. Anglo-Saxon societies tend to be individualistic, emphasising the significant role of the individual in society. According to Simpson (2001) human relationships are perceived as individual, lineal called hierarchical, or collateral – collectivist. Cultures that are individual believe that an individual human being should be independent. Individuals take responsibility for their own actions and behaviour. Anglo-Saxon societies tend to be individualistic, emphasising the significant role of the individual in society.
3) concept of space -- can be perceived as private, public or mixed. There are societies where space is treated privately with respect for personal ownership. Everything that is private is valued, including private meetings. Anglo-Saxon cultures belong to this category.
Hall's Cultural Contexts Model
Different societies and culture groups respond differently to their contexts when they maintain relationships. Hall (1976) was the author who found out that to understand the behavioural priorities of a particular group it is necessary to know their contexts and how members of the group experience them. He distinguished culture between: high-context cultures and low-context cultures.
People from high-context cultures depend mainly on the external environment, situation and non-verbal behaviour when they create and interpret communications. While low-context societies are characterised by quite different features. It means that:
Ø relationships between people are relatively shorter and usually there is no such deep involvement as in high-context cultures
Ø insiders and outsiders are less closely distinguished. It results in relatively easier adjustment of foreigners to the society. In some societies immigrants may be encouraged to take nationality
Ø cultural patterns are not as ingrained as in high-context societies and faster to change.
Hall's cultural model is based on qualitative insights rather than quantitative data. Examples of high-context countries are as follow: Asian countries as well as the Middle East and countries around the Mediterranean . Low-context countries are among Great Britain , New Zealand , Australia , Germany
Meanwhile Trompenaars & Hampden-Turner (1999) proposed a seven- dimension model of examining variety of cultures. They stated that cultures distinguish from each other by the specific solution of the problems that are treated as dilemmas. These fundamental problems belong to our relationships with other people, our attitude to the environment and time. In analysing relationships with people they take under consideration five dimensions or orientations: Universalism versus particularism; Individualism versus communitarianism; Neutral versus emotional; Specific versus diffuse; and Achievement versus ascription.
Universalism can be stressed in saying that it is possible to define things or ideas that are right and good, if so they should be always and everywhere implemented. The examples of this approach are among others Great Britain and Sweden
Though the idea of individualism (Great Britain , Netherlands , Sweden ) and communitarianism (France , Germany , Japan
The Neutral approach is preferred where people dealing officially are objective and rational. Expressing emotions is not treated as professional and what is more, impairs business. Great Britain and Germany
Another dimension is differentiation between the specific approach and the diffuse. The knowledge of the importance of this cross-cultural difference is very useful both in business and in other kinds of relationships. The specific approach focuses on a particular matter – in business on getting a contract signed and relationships between parties are limited to the negotiated points of the agreement. The examples of this attitude are Great Britain , Netherlands , Sweden Latin America , and Arabian countries.
Achievement cultures believe that an individual should be judged on what he/she has recently achieved and the first question is "what did you study?" The examples of achievement cultures are Great Britain , Sweden , Germany , Netherlands , Japan France
Another dimension is attitude to time similarly like in the Kluckhohn and Strodtbeck model. Some cultures perceived time as passing in a straight line and a sequence of different events. Past is not as important as present and future and consequently past achievements are not very much recognised and appreciated. This attitude is characteristic for Great Britain , Netherlands , Germany , Sweden
Though Garreau (n.d.) noted one of the major cultural differences among European nations themselves. First Europe is divided by northern Europe (Scandinavian countries, Benelux, British Isles , Austria and Germany ) and southern Europe (Italy , Spain , Portugal and Greece
The Culture of United States vis-à-vis the Europeans
It is stereotypical knowledge that two major cultures that seemed never to meet is the culture of the West and the East. For centuries this simple knowledge has been the issue of cultural clash, barriers that block the two cultures that many writers and historians have put tons of studies and chapters of books discussing the difference. But examining closely this immemorial culture division that civilization knows, United States
Putting together the cultural studies and researches done by Kluckhonh & Strodtbeck's, Hall, Trompenaars & Hampden-Turner, and Hofstede, we can only see one major obvious similarity between United States
First all the cultural undercurrent of European nations is the same with that of the United States
Basing from Kluckhonh & Strodtbeck's study about the cultural similarities and differences in terms of a number of fundamental dilemmas that all societies face – relationship to nature, human relationship and concept of space – the Americans is very the same way with their European counterparts. Their relationship to nature can be perceived as subjugation, harmony or mastery of nature. This is a society convinced on human supremacy over the World and believes that people can harness the forces of nature. As Kluckhonh & Strodtbeck's noted this attitude can be observed in the English-speaking nations and many other European countries. Obviously, United States
Hall's Cultural Contexts Model, that distinguished culture between: high-context cultures and low-context cultures, finds that low-context countries are among Great Britain , New Zealand , Australia , Germany United States
Likewise Trompenaars & Hampden-Turner's seven- dimension model of examining variety of cultures clusters United States United States
The same can be said with that of Hofstede's study.
Probably one remaining possible barrier that one can think of between the United States
Tommy Hilfiger in Europe
According to Bomersheim (2001) that from the perspective of marketers, it's better to be in the fashion business (in Europe ) than to sell humdrum old commodities. This is on the conclusion that people will pay good money to get that special look.
And that is exactly what fashion companies are doing.
From a humble beginning of designer Tommy Hilfiger according to www.tommy.com with only a retail career of $150 and 20 pairs of bell bottom jeans, Tommy Hilfiger is now a household names around the globe with profit reaching $1 billion earning a year and know known for trendy fashion designed clothes for men and women, sportswear, tailored clothing and dress furnishings, athletic apparel and fragrance, jeans, and fashion accessories.
In a Press Release on July 6, 2001 www.tommy.com announced the complete acquisition of Tommy Hilfiger Corporation of T.H. International N.V., the owner of its European licensee, for $200 m. Tommy Europe markets and distributes Tommy Hilfiger men's, women's and children's sportswear and jeans wear in Europe and the Middle East through diverse channels, including wholesale sales to quality retailers, franchisees and regional distributors, and retail sales through a limited number of company-operated specialty and factory outlet stores.
Then according to www.fashionunited.co.uk Hilfiger profits rise due to European business, where 15 of its stores are located. The fashion company posted better than expected second-quarter profits, mainly due to the acquisition of Tommy Hilfiger Europe. The net profit in the 3 months to September was up to $47.9m (EUR 52.9) compared to $ 44.9m in the same period of 2000. In the first half year, net profit amounted to 56.9m. Tommy Hilfiger Europe is expected to contribute $115m to Hilfiger's financial year. Turnover in the first half declined from $ 933.2m to $901.1m. Women's wear is continuing to perform strongly, while children's wear and sales declined.
Going back to the research of scholar Hofstede who states that culture is learned, not inherited and can be learned so as to integrate cultural differences. Where some elements creating this cultural programming of the mind (Language, Religion, Economics, Politics, Social, institutions, Values, Customs, Attitudes, Manners, Education, Material items, and Aesthetics) can be observed as material items, specifically like fashion.
Following the argument of Hofstede, fashion therefore can be learned and can be integrated, and at some point with relative ease fuse with the culture of other nations.
This is best exemplified by the case of fashion company like Tommy Hilfiger in Europe . The collection of clothes offer by Tommy Hilfiger are easily adapted and patronized by Europeans and can be seen on the high sales of stores in Europe .
On the contrary, back to where Tommy Hilfiger is based, United States , the company according to its website www.tommyhilfiger.com press release dated November 1, 2002, Tommy Hilfiger announced plans to close most of its U.S.
According to Time Europe writer, Thigpen (2000) Tommy Hilfiger may be a victim of its own successes. After ten long years in which the company's average growth sizzled at 48% a year, some business pundits fear Tommy's recent expansions into women's wear, perfumes and baby gear may have pushed the brand to a saturation point since Tommy products are already in 10,000 stores across the U.S.
Tommy Hilfiger Europe might be experiencing minor barrier for its fashion items to be introduced in Europe, like dealing with business people from the north and south Europe where there is a slight different business working ethics, but overall the Tommy Hilfiger fashion business is a success and well supported by consumers.
Probably we can conclude that with the fact in hand that the stores in the United States are the ones closing, cultural barrier is no longer an issue but business acumen of how to sustain financial growth in a competitive fashion market plays already a fundamental issue.
Summary
Analysing all the study and researches done by scholars on the issue of culture and the different cultures in world, their models can be useful for close scrutiny and understanding of cross-cultural issues. From the study, they give clear view on different approaches and attitudes of people originating from different countries and regions, and at some point their similarities. The issue between the difference of culture between United States and European countries, on the aspect that it can affect doing business between the two, particularly on fashion business in introducing new fashion item in the European market.
There are loud similarities in the culture of United States
The case of Tommy Hilfiger is given as a study on the success of US-based fashion company in Europe only if the company will play its cards well and practice sound business acumen. So far there is no obvious cultural barrier US fashion companies experience in Europe as this paper shows. Doing fashion business between United States Europe since fashion is not restricted by language, and people has a inclination to look good without consideration on where the fashion company is based.
Chapter 3
Methods And Procedure
This chapter will discuss the method of research to be used, the respondents of the study, the sampling technique, the instrument to be used, the validation of the instrument, the administration of the of the instrument and the statistical treatment of the data that will be gathered.
Method of Research to be Used
This study will use the descriptive approach. This descriptive type of research will utilize interview, observation and questionnaires in the study. The descriptive method of research is described as gathering of information about the prevailing condition at the present. Its purpose is to employ describing the nature of a situation as it exists at the time of the study and to explore the cause/s of a particular phenomena.
This study will determine whether the lifestyle of the Europeans, particularly the English in UK
The primary source of data will come from a researcher-made survey questionnaire that will be given to the 30 respondents involved in the fashion industry. The respondents of this study will be randomly selected now residing in different places in UK
The secondary sources of data will come from published articles from business and fashion journals, theses and related studies on culture, fashion and apparel business operation. These sources will provide the theoretical basis of the study as well as present the statistical information relating to the development of the companies. Further, the factors, issues and their analysis will guide the researcher in establishing the relationship of market activities and the management framework in adopting to such changes. Consequently, an evaluation will be provided on the result of the survey and the prior findings made by these earlier studies.
For this research design, the researcher will gather data, collate published studies from different local and foreign universities and articles from social science journals, distribute sampling questionnaires; arrange interviews; and make a content analysis of the collected documentary and verbal material. Afterwards, the researcher will summarize all the information, make a conclusion based on the null hypotheses posited and provide insightful recommendations on the dealing with the issue of foreign-based apparel company operating in European setting.
Respondents of the Study
The general population for this study will be composed of English in major UK cities like London, Birmingham, and Nottingham in particular numbering three hundred (30) respondents. The researcher will conduct a random sampling based on probability[2] using the telephone directory of the three cities. For easier sampling, the researcher may opt to conduct the survey through phone with the permission of the respondent.
Sampling Techniques
The researcher will use a combination of cluster and random sampling. First, the researcher will cluster the three identified UK major cities; London , Birmingham , and Nottingham . From each cluster, the researcher will randomly pick numbers on the telephone directory of the three cities.
To make the sampling easier for every specific cluster, the researcher will seek the aid of any Englsih-based fashion organization to facilitate the names and addresses of the respondents or have them together in one place (i.e, in a organizational meeting) so that the surveys can be given in one session.
Instruments to be Used
To determine whether there is a cultural and other issues of barrier in fashion for foreign-based apparel company in UK
Part 1 of the survey will ask for the characteristics of English respondents according to age, gender, civil status, religion, birth order, educational attainment, occupation, place of origin, present location, housing status, number of children.
Part 2 will determine the level of participation of English respondents in fashion in relation to their taste, clothing preference and whether they consider the clothes a foreign-made or local,. The respondents will grade each statement in the survey-questionnaire using a Likert scale with a five-response scale wherein respondents will be given five response choices. The equivalent weights for the answers will be:
Range Interpretation
4.50 – 5.00 Always
3.50 – 4.00 Very Often
2.50 – 3.49 Often
1.50 – 2.49 Sometimes
0.00 – 1.49 Not at all
Part 3 will identify the problems they know foreign-based apparel company experience in catering to their clothing needs. The experience these foreign-based apparel company in adjusting to the taste of the local market and what they are doing about it to compete with the prevailing market. The respondents will also be free to give their own experiences, which are not stated in the choices.
Validation of the Instrument
For validation purposes, the researcher will initially submit a survey questionnaire and after approval, the survey will be given to ten English. After the survey questionnaire will be answered, the researcher will ask the respondents for any suggestions or any necessary corrections to ensure further improvement and validity of the instrument. The researcher will again examine the content of the survey questionnaire to find out the reliability of the instrument. The researchers will exclude irrelevant questions and will change words that would be deemed difficult by the respondents to simpler terms.
Administration of the Instrument
The revised instrument will then be administered to the respondents of the study that will be chosen through a combination of cluster and random sampling. The researcher will exclude the ten respondents who will be initially used for the validation of the instrument. The researcher will also tally, score and tabulate all the relevant data in the survey questionnaire.
Statistical Treatment of Data
When all the survey questionnaire have been collected, the researcher will use statistics to analyze all the data.
The researcher will statistically treat the data on Part 1, the profile of the respondents, first, according to age, gender, religion, birth order, civil status, educational attainment, occupation, place of origin, present location, housing status, number of children, length of stay in Metro Manila since migration, and reason for migration.
The statistical formulae to be used in the second and third part of the survey questionnaire will be the following:
1. Percentage – to determine the magnitude of the responses to the questionnaire.
n
% = -------- x 100 ; n – number of responses
N N – total number of respondents
2. Weighted Mean
f1x1 + f2x2 + f3x3 + f4x4 + f5x5
x = --------------------------------------------- ;
xt
where: f – weight given to each response
x – number of responses
xt – total number of responses
CHAPTER 4
PRESENTATION, INTERPRETATION AND ANALYSIS OF DATA
This chapter presents the data gathered from the questionnaire, interviews conducted by the researcher with the 30 respondents from the United Kingdom
For greater clarity in understanding, the findings of this research
investigation, summary tables were prepared and included in this chapter.
PART 1. DEMOGRAPHIC PROFILE
The respondents came from four broad sectors: the IT industry, the Marketing Industry, the Manufacturing Industry and the Fashion Industry. Other sectors mentioned include the teaching profession, and electronic and communication industry. From the table below, we can see that the examinees came mostly from the Fashion Industry; they comprise 50% of the respondents. Almost 27% of the respondents came from the Marketing Industry.
The respondents coming from the manufacturing industry comprise 6.67% of the respondents. The respondents who came from the Manufacturing Industry comprise 10%.
TABLE 1. Occupation and Gender
| Occupation (Sector) | Total | Male | Female |
| Fashion Industry | 15 | 9 | 6 |
| Marketing Industry | 8 | 5 | 3 |
| Manufacturing Industry | 2 | 2 | 0 |
| IT Industry | 2 | 2 | 0 |
| Others | 3 | 2 | 1 |
The table also shows the gender of the respondents per sector. Predominantly, the population is comprised of the males, accounting for 66.67% and the females with 33.33%.
Table 2 shows the position of the respondents on the company and their age bracket. The positions outlined as answered by the respondents include: executive positions including the senior and junior executives, managerial including those who are on the way to the position, office staff comprises of supervisors and higher level office staffs, office staffs, clerical positions and rank and file employees. From the statistics below, the respondents generally came from the Office Staff position consist of 26.67% of the respondents. They are followed by the Clerical and Rank and File Employees with 20% share respectively. It is important to note that these employees mostly came from the Fashion Industry. The managers and potential managers also comprise 16.67% of the total respondents while only 10% came from the executive positions. Generally, we can deduce that more respondents came from the middle and lower level positions.
TABLE 2. Position in the Company and Age
| | AGE BRACKET | |||
Position in the Company | Below 25 years old | 26-30 years old | 31-35 | 35 and above |
Executive | - | - | 1 | 2 |
Managerial | 1 | 1 | 1 | 2 |
Office Staff | 3 | 3 | 2 | - |
Clerical | 3 | 1 | 1 | - |
Rank and File | 3 | 1 | 1 | 1 |
Others | 2 | - | - | 1 |
The respondents are also generally young. Almost 40% are on the age bracket 25 years old and below. Moreover, the second highest population came from the examinees under the age bracket 26-30 years old. They comprise 20% of the respondents and the same is true with the 31-35 year olds with a percentage of 20% and the 35 and above years with 20%. From the age demographics of the respondents, it can be said that they are still relatively new in their respective companies although there are outliers (10% are already in the executive positions).
As such, a significant number of the respondents are still single. Thirty five percent are still single while 5% are divorced and 6.67% are widowed. The bulk of the respondents are married with a portion of 53.33%.
Figure 1 illustrates the educational attainment of the respondents. In summary, they are an educated group with 76.67% finishing college on the minimum. Almost 17% have finished their doctoral degrees and a noteworthy 26.67% have finished their Masteral Degrees. In addition, 33.33% have finished college and only 13.33% are high school graduates. Moreover, only one respondent or 3.33% have finished elementary alone. Basing from this data, the respondents have attained a relatively sufficient educational background.
Figure 1. Educational Attainment
Figure 2 shows the monthly income of the respondents basing on their educational attainment. Those who attained a doctoral degree have a higher monthly income with an average of 9,900 pounds excluding compensations and bonuses. The respondents who have a Masteral degree follow closely with an average monthly income of 8,700 pounds. The college graduates earns 7,000 per month salary while high school graduates earns 5,800 pounds and the elementary graduate earns 5,300 pounds a month. The figure shows that educational attainment is positively related to the monthly income by the respondents; the higher the level of education, the higher the income. As such, in Israel, the people who have earned their doctoral degrees have a sufficiently higher income than those who have not yet attained the status.
Figure 2. Monthly Income by Educational Attainment*
Figures exclude benefits and bonuses. Figures were rounded off to the nearest hundred.
Part II of the survey reflects the result of the Assessment of Fashion Preference and Branding. The table below reflects the assessment of the respondents on the consumer preference on apparel by the respondents and the effect of the brand on their preference.
Statement 1 inquires on the inclination of the respondents with an emphasis on the difference between the fashion offered by Europe and the United States. The findings show that in general, the respondents Agree that they prefer European brands than the brands coming from the United States. Moreover, 16.67% replied that they strongly concur with the statement while 50% Agrees. However, a significant number were neutral. They amount to 20% of the response while the Disagree and Strongly Disagree category both merited 6.67%. This implies that while advertising has been significantly affecting the fashion culture in Europe, there is still a noteworthy distinction between brands.
Statement two asks on the inclination of the respondents on the designer brands. This inquires on the brand consciousness of the respondents. From the data, we can see that the respondents are indeed bias on the brands that they buy. This is evidenced by the 63.33% who are on the Agree side with 26.67% fervently concurring to the statement. Again, a significant number remained neutral, they comprise 16.67% of the total response. Moreover, 20% are on the disagree side.
Statement two merited an interpretation of Agree with a weighted mean of 3.67. Thus, we can conclude that brand consciousness also carved its way into the preferences and buying trends of the respondents.
Statement three inquires on the fashion trend awareness of the respondents and the subsequent choice of following the fad. The respondents lean towards preferring to go with the latest fashion trends by wearing it. Sixty three percent asserts that they Agree with the statement while 26.67% cannot decide. Moreover 10% Disagreed. The findings show that the mean of the statement is 3.67 or an interpretation of Agree. Subsequently, it implies that the respondents are generally fond of wearing fashionable dresses.
Statement four finds out if Tommy Hilfiger can be considered as one of the better brands in the UK. The response is positive. In fact, the statement got a weighted mean of 3.8 or a weighted mean of 3.8. This is connection with the 73.55 who answered positively with the statement. Moreover, 26.67% is composed of the following responses: 13.33% were Neutral, 6.67 for both the Disagree and Strongly Disagree.
Statement Five asks if the Tommy Hilfiger brand id in line with the fashion preference of the UK customers. Cultural variation has been cited as one of the most potent determinant of the marketability of a given brand. The response affirms the belief that the success of the Tommy Hilfiger in the UK is largely attributed to its ability to cater and respond to the needs of the market. It obtained a mean of 3.87 or an interpretation of Agree. The response percentage is as follows: Strongly Agree, 20%; Agree, 56.67%, Neutral, 16.67%, Disagree and Strongly Disagree with 3.33%.
Statement six tries to reveal the buying habits of the respondents, When asked if they usually buy Tommy Hilfiger brand when going to the mall and shopping, the respondents answered that they generally does. This is evidenced by the response of 53.33% on the Agree side with 10% replying that they Strongly Agree. However, a significant percentage also disagreed with the statement. They comprise 40% with 10% on the Strongly Disagree side. 6.67% remained neutral.
This implies that the retailing business is indeed a tight race among brands. The statement obtained an average of 3.13 or a Neutral Interpretation. This shows that the probability of the respondents buying a Tommy product while shopping is uncertain.
Statement Seven traces the kind of look that the respondents wants to have. From the given data, the statement obtained a mean of 3.27 or an interpretation of Uncertain. The breakdown of the responses are as follows: 13.33% Strongly Agree, 30% Agree, 26.67% Neutral, 23.33% Disagree and 6.67% Disagree. From the given percentages, we can see that the reply is scattered. Meaning, there is a significant uncertainty on the part of the respondents on what look they want. Thus, Statement seven does not offer a consensus on the issue of preferring the conservative or the sporty look.
Statement Eight inquires if the respondents consider Tommy Hilfiger as one of the best and popular brands in the UK. From the mean of 3.93 or an interpretation of Agree, we can assert that indeed, Tommy remains to be one of the most powerful brands in the UK. The breakdown of the percentage response reveals that a noteworthy 83.33% are on the Agree side while only 10% Disagreed. Further, nobody exerted a strong disagreement on the statement.
| Statement | Strongly Agree | Agree | Neutral | Disagree | Strongly Disagree | Weighted Mean |
| 1. Generally, I prefer brands coming from Europe than those coming from the United States or other countries | 5 | 15 | 6 | 2 | 2 | 3.63 |
| 2. I am more inclined to buy designer apparels than brands that are not popular | 8 | 11 | 5 | 5 | 1 | 3.67 |
| 3. I like wearing the latest in fashion | 4 | 15 | 8 | 3 | 0 | 3.67 |
| 4. Tommy Hilfiger is one of the fashionable brands in the UK | 9 | 13 | 4 | 2 | 2 | 3.8 |
| 5. Tommy Hilfiger caters to the cultural fashion preference of the English | 6 | 17 | 5 | 1 | 1 | 3.87 |
| 6. I frequent the mall and usually buy clothes and RTW apparel from Tommy Hilfiger | 3 | 13 | 2 | 9 | 3 | 3.13 |
| 7. The sporty type rather than the more conservative look is preferred by UK consumers | 4 | 9 | 8 | 7 | 2 | 3.27 |
| 8. Tommy Hilfiger is one of the best and more popular brands in the UK | 6 | 19 | 2 | 3 | 0 | 3.93 |
| 9. Tommy Hilfiger caters to all kinds of market; their product is not confined to a limited consumer | 11 | 7 | 5 | 5 | 2 | 3.67 |
| 10. I am satisfied with the products offered by Tommy Hilfiger | 8 | 17 | 4 | 1 | 0 | 4.07 |
The economies of scale is very important in determining the profitability of the company. Scholars claim that expanding one's market actually increases the likelihood that the company will grow. Thus, Statement Nine inquires on the market of Tommy Hilfiger. The findings shows that Tommy adheres to this kind of principle as evidenced by the 3.67 mean or an interpretation of Agree by the respondents. Moreover, 60% Agreed with the statement while the remaining is broken down to 16.67% Neutral, 16.67% Disagree and 6.67% Strongly Disagree.
Finally, the respondents were asked on their level of Satisfaction on the products of Tommy Hilfiger. Statement Ten obtained the highest mean among the ten questions asked. An overwhelming sign that the respondents are very satisfied with the products they bought from Tommy Hilfiger. This is evidenced by the 83.33% who leaned on the Agree side with 26.67% saying that they Strongly Agree with the statement.
PART III. Coping Mechanisms of Tommy Hilfiger
| Statement | Strongly Agree | Agree | Neutral | Disagree | Strongly Disagree | Weighted Mean |
| 1. The Advertisements and the Marketing strategy of Tommy Hilfiger is generally effective | 9 | 15 | 2 | 3 | 1 | 3.93 |
| 2. There had been changes in the packaging of the Tommy Hilfiger which has been effective in capturing more market shares | 11 | 11 | 4 | 4 | 0 | 3.97 |
| 3. The brand of Tommy Hilfiger transcends cultural barriers | 6 | 16 | 3 | 3 | 2 | 3.7 |
| 4. The marketing strategy of Tommy Hilfiger does not stagnate because they have something new to offer every time | 7 | 9 | 7 | 4 | 3 | 3.43 |
| 5. In general, Tommy Hilfiger will continue to prosper in the UK market | 14 | 14 | 1 | 1 | 0 | 4.03 |
Part Three inquires on the Marketing Strategy of Tommy Hilfiger and assesses the effectiveness of the changes they made to keep up with the times. Statement One inquires on the effectiveness of the Advertising strategy and the marketing plan of Tommy. The general response is that they Agree on this issue. This is a verification of the 3.93 mean the statement got. This is because of the high number of respondents on the Agree category. Moreover, an additional 30% from the 50% was contributed by the Strongly Agree category. Moreover, only 13.33% Disagreed on the issue while 6.67% were Neutral.
Statement Two asks if the respondents if there had been changes instituted by the Tommy Management in lieu with the changing consumer demand. The response is generally positive as the statement merited a mean of 3.97 or an interpretation of Agree. Again, this is largely due to the high number obtained by the category Strongly Agree with 36.67% and Agree also with 36.67%. Consequently, only 4 respondents Disagreed while nobody replied that they Strongly Disagreed.
This implies that Tommy had also shift gears and changed management strategies in order to keep with the demand by the Market. The fashion industry is a very dynamic and unpredictable market. Thus, it entails an elaborate and insightful plan. As such, Tommy seems to be adept on this aspect as perceived by the respondents.
Statement Three inquires on the ability of Tommy to go beyond cultural boundaries. As emphasized in the beginning of this analysis, cultural factors has been one of the key determinants of the ability of a fashion brand to succeed in the fashion war. As such, Tommy is perceived to be doing such as evidenced by the 3.7 mean that it garnered from the respondents. This also merited an interpretation of Agree. The breakdown of the response percentages shows that 73.33% are in the Agree side while only 16.67% are on the Disagree side. The neutral response warranted 10% of the total reply.
This implies that the management plan of Tommy has been effective in crossing cultural barriers.
Statement Four follows up on this issue by extending the question on the marketing strategy not stagnating because of the changes that was also incurred in Tommy's marketing strategy. The statement merited a mean of 3.43 or an interpretation of Uncertain. This can be partly due to the high number of respondents who opted to stay neutral on the issue.
Finally, Statement Five asks on the possibility of Tommy persisting in the future and maintaining market dominance. The mean response amounted to 4.03 or an interpretation of Agree. This high rate affirms the belief that Tommy Hilfiger will not fade with time but rather, with the aid of effective management strategies, it will continue to gain a considerable market share.
The result of the survey affirmed the views as provided by the CEO of Tommy Hilfiger. The excerpt is summarized as follows:
Operating in Europe is really difficult due to the fact that the cultures within Europe are different. Every country has its own habits. Also there are big differences within demands for apparel or ready to wear clothes with the different countries within Europe. The differences within the US market are smaller and there are not really big differences between the different states of America.
Our first difficulties were to make the consumers aware of the existence of the Tommy Hilfiger brand and to represent the image of the brand. The problem we have had with this was that a lot of people knew the brand from the US and they only saw the big logos and designs European people are not used to. So in the beginning this was really difficult but nowadays we can say we did a good job. The major adjustments were the fit of the clothing, colors and different logos.
The differences in consumer behavior and preferences between the US and UK: US: big logos, baggy loose clothes, bright colors, designer like Armani, Gucci. Europe: sophisticated logos, slim fit, not too bright colors. UK: Football culture they wear clothing that is associated with Football like shirts of football clubs and so on or they wear fashion (Armani, Gucci) towards extreme fashion
Within the European market there are trend setters and followers, the trick is to follow the trend setters as close as possible, try to stay in their slip stream if you succeed in this the trend followers will buy your clothing. They have in common the more expensive and exclusive designer clothing like as I mentioned before Armani, Gucci and so on.
Our goals are to establish a successful Pan-European brand that is known all over Europe and equally successful within these different countries.
The Fashion Industry and Market Coping: Empirical Researches
Studies have provided important company level evidence in a historical context. This has complemented the broader studies which have attempted to monitor the flow of international investment by retailers. Burt (1993) has charted the directional trends of British Retail Activity from 1960-1990 amd recognized a concentration of activity within North America (attributed to cultural affinity), as well as the geographically close markets of Western Europe.
Robison and Clarke-Hill (1990) detailed the directional growth of 27 major retailers across the main EU states and as well as noting that the volume of international activity was small when compared with domestic turnover. Their study also highlighted the fact that European retailers was invariably confined to geographically and culturally close markets.
Pre-conceived cultural and other barriers confronted Tommy Hilfiger, as well as other US-based apparel companies, in penetrating in the European market. Just as any other company aspiring to enter into any foreign market, Tommy Hilfiger was faced with apprehensions on the difficulty of US-based companies in specializing in the European fashion business. In a swift glance, there would seem to be a cultural difference between United States and European nations, mainly due to geographical segregation, thus having different cultures.
But Tommy Hilfiger's growing presence in Europe is proof that even geographical boundaries these days can be transcended, proof to the continuing cultural and behavioral modification brought about by advancements in information technology and modes of transportation. Other US-based apparel companies would have thought otherwise in investing in Europe, hindered by the prevailing belief that US and Europe are on the opposite sides of the coin – which is in fact true. Though both located on the western hemisphere of this planet, both the US and Europe have huge differences - linguistically, religiously, economically, politically, socially, and institutionally – many overlooked the fact that all these factors can be "programmed" culturally. As earlier mentioned in this study, culture is learned, not inherited. With proper brand positioning and image building, Tommy Hilfiger, and any other apparel company for that matter, is likely to enter and achieve growth into any foreign market.
Moreover, societies with low-context culture, such as most European nations, allow for relatively easier integration of foreigners to the society, which could attribute to Tommy Hilfiger's success in Europe. Moreover, cultural patterns that are not as ingrained as in high-context societies, thereby allowing for greater ease in cultural change, allow for opening of great opportunities for Tommy Hilfiger, along with other foreign fashion companies, across Europe.
Fashion trends can be as erratic as a bipolar person. Fabrics, cuts, and styles could very much outshine each other in a matter of seasons. But a strong brand could stand tough tests of time and tastes. Part of Tommy Hilfiger's success in the European fashion industry could be attributed to the fact that it has a strong brand to build upon. Presently, the company enjoys a premium position in the European marketplace, a well-developed operational infrastructure and a diverse pan-European customer base, attesting to the global appeal of the Tommy Hilfiger brand.
Just as other successful clothing brands such as Gant, Mexx, Levi's, and Ralph Lauren, TH Europe capitalized on the strength of its brand and well-executed marketing strategies to create its niche in the European fashion market. Tommy Hilfiger has been known as a "fashion-right" brand, and is being marketed as a "classics with a twist" clothing line that appeals to a wide range of age classes, lifestyles, and even races. Having such an "objective" marketing strategy – meaning free of any racial connotations – signified that the company is more likely to extend its perceived style and status to an individual, rather than to a defined set of peoples or races, thereby attributing to the company's growth worldwide. Further, the fact that the company offers an individualized style of clothing greatly helped in edging its way to the European fashion market, as European as a whole, just as Americans, tend to be individualistic, and put great emphasis on the role of the individual in society.
Being an established and mature company, Tommy Hilfiger found it wise to remain true to its design roots and maintain its broad customer base to confront a the various changes within Europe's fashion market. Specifically, the company focused on improving their value proposition to their loyal patrons, with trend-right fashion at sharper price points, knowing that customers nowadays prefer to put more value on costs. Moreover, the company utilized their leverage in operations by reducing cycle time to market and continually testing new items to find out the desirability of their new products. Through these strategies, Tommy Hilfiger Europe was able to enhance the reach of its brand, thus enabling it to introduce such accessories as handbags, intimate apparel, swimwear, jewelry, footwear, eyewear, bath and body products, and golf wear. Moreover, through these strategies, Tommy Hilfiger Europe was able to provide its significant share in the sourcing and production capabilities of the company's wholesale enterprise – all these, while tailoring the company's products to meet the specific needs of their individual markets.
Tommy Hilfiger in the Face of Globalization
Burt and Brown (1993) asserts in their conclusion the special issue of European Journal of Marketing that one view of internationalization is based on the transfer of a retail brand, with its associated image for consumers, across national boundaries. Thus, they added that the fashion design retailing is synonymous with brand image. The marketing of designer fashion ensures that this shared international understanding of brand identity and meaning is developed and preserved through the standardization of communication strategies, and by the exercising of tight controls over the merchandising, distribution, and pricing strategies.
Alexander (1995b) provided a fourfold classification:
(1) Autochthonic- saturation in the domestic market is unimportant but the retailer's operation has limited global potential
(2) Reactive- saturation in the domestic market is important but the retailer's operation has limited global potential
(3) Expansive- saturation in the domestic market is important but the retailer's operation has considerable global potential
(4) Proactive- saturation in the domestic market is unimportant but the retailer's operation has considerable global potential
He claims that internationalization can take place at any of these positions in that the recognition of market opportunities can occur at various stages of a company's development. However, this view was developed at a time before designers developed diffusing lines and appealed to a wider audience.
Moore, Fernie and Burt (2000) conducted a survey using 114 international companies. The table shows the distribution of the respondents per country.
| Country of Origin | No. of Int'l Fashion Designers |
| France | 30 |
| Italy | 26 |
| UK | 27 |
| USA | 12 |
| Others | 19 |
Their findings indicate that 60% of the firms have been into public companies. For instance, in the UK, the fashion design house of Donna Kara, Gucci, and Tommy Hilfiger achieved stock market listings in 1996, 1995 and 1992 respectively.
The Four Stages of Fashion Designer Market Development:
Stage 1 Stage 2 Stage 3 Stage 4
| Open diffusion stores in key provincial cities |
| Open diffusion brand flagship stores in capital |
| Open Couture/RTW flagships in capital cities |
| Launch Couture/ RTW via Wholesale in capital city Department Stores |
Extend wholesale availability Maximum availability of
of RTW to key stores in other diffusion brands via wholesale within
major cities capital and provincial cities
Fashion design retail market has been buoyant in the 1990s growing from 16 billion pounds in 1992 to 24 billion pounds in 1998. Much of this growth has been fuelled by consumers' desire for designer brands.
Global branding propelled by the economic activity of globalization paved the way for an integrated market that crosses cultural borders. As such, the focus on the local brands had been diminished and dwarfed by the multi-national companies who are more powerful in terms of brand recall and financial stability. Thus, their ability to manipulate cultural preferences is enhanced. Issues such as national identity and local fashion culture had been the main argument against the entry of global brands in the local market. However, its inevitability is in the offing.
The most important thing to understand about integrated branding is that it is a model for building the most important asset any company has--its relationship with its customers (Lepla, 1999). If you understand that your best customer is the one you already have, then creating a rational system for deepening customer relationships is the logical next step (Lepla, 1999).
Basing your product or service offerings on an integrated brand allows your organization to develop more saleable products over the long term by keeping it focused on your strengths as an organization. This focus opens it to new possibilities by broadening the corporate aperture from looking at what you are producing right now to looking at the bigger picture. Seeing the big picture is an essential prerequisite to company longevity. Strategy based solely on current product or service uniqueness ultimately results in decreasing market share, lower margins, missed opportunities, and price wars (Lepla, 1999).Integrated branding helps companies understand who they are and how to use that knowledge consistently to create better results. As with all worthwhile change, the process takes some investment in time and elbow grease up front, but results in a huge payoff (Lepla, 1999).
From a managerial perspective, a strong category-to-brand association is both a blessing and a curse. Strongly category-dominant brands have widespread customer recognition and often enjoy substantial market share. But this strength in the parent category may also limit the brand's direct extendibility to other product categories. A strong category-to-brand association appears to restrict a brand's ability to transfer affect across categories, underscoring the need for caution in extension decisions for brands that might appear to be natural platforms for building equity.
One of the major sources of value created by a brand lies in the memorial associations consumers have for products sold with that brand brand-building efforts that seek to develop greater brand awareness and foster favorable brand attitudes among consumers. A brand that is strongly associated with a particular product category will often enjoy substantial success in that category because it can effectively isolate itself from competing brands (Williams, 1992).
Primarily, branding starts with the effective use of media as an advertisement tool. Cultural diversity and the penchant for global fashion are increasingly reinforced in the media. Preferences for clothes, accessories and other fashion items rest on how a product is shown and perceived by the consumers around the world. Thus, fashion advertisements are not only focused on a specific market but rather on the global market by universalizing their product and thus their brands. The potential influence of globally shared television images, the informational power of the Internet, or how displays of popular culture artifacts or consumer goods proffer modes of articulation for sharing surface identities based on styles (Ferguson, 1992).
Being, first of all, a pragmatic market instrument, ads have an important side effect: they reproduce dominant ideologies, social structure, power relations and a global cultural. The products consume by individuals are wide spread markers of their social status, and they can be analysed as second-order signs, in Barthes's terms, or to put it another way, as myths of consumer society: goods are imagined as magic latchkeys, letting one to come into the dream world (Ross, 2000). Fairytale narrative in a 30-second advertisement. Role of advertisements in socialization and construction of identity; representations of males and females and construction of their subject positions in advertisements (Ross, 2000).
Moreover, further globalization of economies has greatly aided TH Europe, along with other US-based fashion enterprises, to gain greater ease in entry to foreign markets. Prevailing international trade agreements have made possible freer product interchanges between and among countries, aided in great ways by the advancements in information technology and modes of transportation. As many experts would say, the world is getting smaller and smaller by the day, as people are being constantly technologically interconnected – thus revolutionizing the ways and speed of knowledge transfer and behavioral modifications across cultures and every geographical boundaries.
Coping mechanisms of selected apparel companies in the UK fashion market
Gant
Gant is now established in 54 countries around the world, with overall sales amounting to MSEK 3,400 in 2001. With its more than two decades of existence since it was first launched in Europe in 1990, Gant has been earning 20 EM annually in Europe, accounting a modest share of the fashion market. Gant has been for its product quality and consistency, especially in men's wear.
Gant's main business concept focuses on building profitability and brand equity through efficient bran management and a low-risk wholesale and retail marketing concept. Gant aims to further its growth in major cities, including Europe, in the next five years by launching directly-operated stores. Gant also intends to intensify its global marketing efforts to promote their growth and brand recognition. Moreover, Gant intends to expand its operations while keeping risks as low as possible. Quality enhancement is also at the top of their list, in cooperation with their various franchises and licensees.
However, Gant still has to contend with its weaknesses – it appeals to customers as being very regional. Moreover, high prices of its products discourage lower end customers in patronizing Gant products, even with its known quality. With intense competition in the European fashion industry, Gant will also need to expand its product lines, such as venturing into women's wear and denims to appeal to a broader customer base.
Lacoste
Lacoste was launched in 1933, short of a couple of decades to reach a century as one of the oldest apparel companies operating in Europe. With estimated profits of 200 EM per annum, Lacoste's products are best known for the casualness and consistency of its clothing lines it has built through its long decades of existence. However, just as Gant, it has to work on operating in wider regional territories. Moreover, Lacoste has to diversify its products to provide greater style options that customers could choose from.
Levi's Strauss
Levi's is probably the most successful apparel company in the world. Launched in Europe in 1959, it is now earning about 1,240 EM per year in Europe alone. Levi's is best known for its marketing strategies that elevated it to the status of a highly recognizable brand. Levi's prides itself in embodying key core values that have enabled it in meeting its customers' needs. Specifically, Levi's live by these four core values: empathy, originality, integrity, and courage.
Levi's prides itself in understanding and appreciating needs and customer insights, in being empathetic with their customers – that has allowed the Company to meet its commercial success.
Levi's deems itself inclusive in that the company was able to provide for diverse consumers, from all ages, lifestyles, and locations around the world. Levis, as they say, reflects a diverse world that the company serves through the range and relevancy of their products and the way they market it.
Levi's also strives for innovation by creating trends, setting new standards, and continuously improving through change. Levi's considers constant and meaningful innovation to be critical in its commercial success. To be successful, Levi's sees the imperative to change and compete in new and different ways that are relevant to the shifting times.
Moreover, Levi's considers integrity as one of its most valuable principles in that it considers ethical conduct and social responsibility as core to its business. Levi's believes that integrity includes a willingness to do the right thing for its employees, brands, the company and society as a whole. This principle of responsible commercial success, Levi's believes, is embedded in the company's experience. It continues to anchor its beliefs and behaviors today, and is one of the reasons why consumers trust the Levi's brands.
Presently, analysts believe that Levi's only needs to enhance its trade relations and may need to further it brand repositioning strategies in the European market.
Mexx
Mexx is earning modestly in Europe, with 380 EM in revenues per year. Launched only two decades ago in 1980, it is known already for its strengths in marketing and affordable price for the consumers who are mostly women. Though very regional in its operation, it needs to upgrade its products on the aspect of selling menswear.
Polo/Ralph Lauren
Polo/Ralph Lauren was launched in European fashion market during the early 1980's and quickly made its mark in the European fashion sense. In its two decades of existence in the volatile European fashion market, it is already capable of earning 300 EM per annum, a successful enterprise by the standards of the European fashion industry. Ralph Lauren is known for its consistency and is perceived as a quality apparel company that mostly caters to men's wear. However, the company may need to adjust the pricing of its products, in response to budding apparel competitors that can also offer quality products, but at much affordable and practical rates. Ralph Lauren may also need to reposition its marketing strategies in women's wear and denims; and with an aging client base, should focus more in attracting a broader client base.
Chapter 5
Summary, Conclusion, and Recommendations
Overall, Tommy Hilfiger can look forward to a bright business in Europe. Other US-based apparel companies would have thought otherwise in investing in Europe, hindered by the prevailing belief that US and Europe are on the opposite sides of the coin – which is in fact true. But Tommy Hilfiger's growing presence in Europe is proof that even geographical boundaries these days can be transcended, proof to the continuing cultural and behavioral modification brought about by advancements in information technology and modes of transportation.
This is despite the fact as confirmed by the TH CEO that it is relatively harder to operate in Europe due to the fact that the cultures within Europe are different. Every country has its own habits. Also there are big differences within demands for apparel or ready to wear clothes with the different countries within Europe. The differences within the US market are smaller and there are not really big differences between the different states of America.
Though both located on the western hemisphere of this planet, both the US and Europe have huge differences - linguistically, religiously, economically, politically, socially, and institutionally – many overlooked the fact that all these factors can be "programmed" culturally. Culture is learned, not inherited. With proper brand positioning and image building, Tommy Hilfiger, and any other apparel company for that matter, is likely to enter and achieve growth into any foreign market.
It must be emphasized that TH Europe's diverse and well-experienced in-house management team that handles its multi-cultural operations, is worth maintaining, and even improving. Composed of peoples from various nationalities from all over Europe, this management could be prided in having to achieve a pan-European approach for the company.
Moreover, putting premium on local preferences should be on the priority list of TH Europe to meet varied style preferences across the regions; and could be done through styling, fabrication, fit, and a variety of flag logo treatments. All these should be executed, while maintaining Tommy Hilfiger's signature style and image of traditional fun, fresh, and "classics with a twist".
Looking ahead, it will be strategic for TH Europe to leverage its existing multi-channel, divisional, and pan-European platform further to expand throughout Europe. In addition, the company must also be on the constant look-out for further opportunities to introduce its new licensed products in Europe.
This study is basically an attempt to illustrate the significance of knowledge in cultural and other issues being confronted by foreign-based apparel company in general and the Tommy Hilfiger in Europe in particular. The primary source of data came from a researcher-made survey questionnaire that was be given to the 30 respondents involved in the fashion industry.
The respondents came from four broad sectors: the IT industry, the Marketing Industry, the Manufacturing Industry and the Fashion Industry. The respondents are also generally young. Almost 40% are on the age bracket 25 years old and below. Moreover, the second highest population came from the examinees under the age bracket 26-30 years old. In summary, they are an educated group with 76.67% finishing college on the minimum. Almost 17% have finished their doctoral degrees and a noteworthy 26.67% have finished their Masteral Degrees.
Conclusion
On the basis of the above summary of findings in this study, this research came up with the following conclusions:
Tommy Hilfiger was able to Dominate the UK Market
The findings show that in general, the respondents Agree that they prefer European brands than the brands coming from the United States. Thus, we can conclude that brand consciousness also carved its way into the preferences and buying trends of the respondents. Subsequently, it implies that the respondents are generally fond of wearing fashionable dresses.
Moreover, Tommy Hilfiger can be considered as one of the better brands in the UK. Cultural variation has been cited as one of the most potent determinant of the marketability of a given brand. The response affirms the belief that the success of the Tommy Hilfiger in the UK is largely attributed to its ability to cater and respond to the needs of the market. Consequently, Tommy remains to be one of the most powerful brands in the UK. An overwhelming sign that the respondents are very satisfied with the products they bought from Tommy Hilfiger.
The Marketing Strategies of Tommy had been Effective
Tommy had also shift gears and changed management strategies in order to keep with the demand by the Market. The fashion industry is a very dynamic and unpredictable market. Thus, it entails an elaborate and insightful plan. As such, Tommy seems to be adept on this aspect as perceived by the respondents.
This implies that the management plan of Tommy has been effective in crossing cultural barriers. Tommy Hilfiger will not fade with time but rather, with the aid of effective management strategies, it will continue to gain a considerable market share.
Recommendation
The findings of the study as well as the suggestions of the respondents helped the researcher prepare the following recommendations:
The fashion apparels and the Tommy Hilfiger included in the study should provide the information on the kind of management strategy has been institued by the industry to cope up with the fierce competition.
Moreover, the researcher proposes to employ additional studies that will cover a much larger population and a much wider coverage area. This would allow the learners in the similar discipline to gauge on what computer training should be employed.
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[1] A research design where subjects are assessed at a single time in their lives. A cross sectional study is fast and can study a large number of patients at little cost or effort. This study is efficient at identifying association, but may have trouble deciding cause and effect. This design was chosen because of the following reasons: cheap and simple; ethically safe; may study several outcomes; control over selection of subjects; control over measurements; and relatively short duration.
[2] The researcher will pick a page number in the telephone directory of the three cities and again pick another number that will be used in determining the respondent by counting the listed subscribers (i.e. page 3, number 23, the person listed in page 3 number 23 will be a prospective respondent).
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