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October 30, 2007

Tommy Hilfiger move at Macy’s is too little, too late.

Analysis of: MACY'S AND TOMMY HILFIGER SIGN STRATEGIC ALLIANCE AGREEMENT | www.retail-merchandiser.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Mark Sussman, President and Chief Executive OfficerMark Sussman
President and Chief Executive Officer, Pyramid Solutions, Inc.
Implications: With all the co branding that Kohls has done, delivered, set on the floor and begun selling along with the American Living line to be introduced at J.C. Pennys, this announcement of an exclusive agreement between Macy’s and Hilfiger is pretty much a yawn.

Analysis:  

The Hilfiger label is so watered down right now that it is hard to discern what it means if any thing. The last time the label was considered “cool” (sic:aspirational) was the Snoop Dogg music video in the late nineties.


The yarn dye woven assortment of about 6- 7 years ago was strong and quickly knocked off by everybody. This not only hurt the look but the entire woven classification, driving the consumer back to knits and fine gauge sweaters.


Log on to the Tommy Hilfiger site and see for your self if there is any hint of innovation! The collections (Men’s, Women’s, Home, Children’s) is pretty much indistinguishable from dozens of competitors in the same sector. These collections represent the cream of the line, what will Macy’s be left with that is exclusive? (not available in Tommy stores)


As the new Martha Stewart collection initial reads have been encouraging I doubt the same will be repeated for Hilfiger. This is a great deal for Apax Partners who owns the Hilfiger name but will not do much for Macy’s. The reason that the deal for exclusivity was made is that demand in the competition for the product was not there. So in the end Macy’s has the exclusive to Hilfiger product but it is not compelling enough to drive people into the store at full price.


Hilfiger is not Ralph Lauren or Calvin Klein, never was, never will be!


Other Analyses of the Same Source Article:
Macy's and Tommy is WIN/WIN!
November 1, 2007, Author: GLG Expert Contributor
HilfigerMacy's partnership is a WIN WIN
October 31, 2007, Author: Allan Zwerner, Independent Consultant, Allan Zwerner Consulting
Better for Tommy than Macy's
October 29, 2007, Author: GLG Expert Contributor
Tommy Hilfiger Big Winner in Macy's Deal
October 26, 2007, Author: Nicholas White, President, White & Co

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