1. What factors have led to higher prices in Europe than in the United States for Hilfiger merchandise? What problems might Hilfiger encounter by having higher prices in Europe than in the United States? The European and American market definitely has a major clash, for it was stated in the case that their demands are opposite from each other. Well, the European market seems to be more demanding in terms of product selection, variety, material and collection. As mentioned, there have been special adjustments made for the European market such as using wool, having jeans made into slimmer shape, and tapping on a more luxurious image -- the use of leather and cashmere for some of its product lines. Thus, this created a higher price variant …show more content…
Comparing Uniqlo here in Manila, it is priced a bit cheaper. Hence, having no harmony for its price is not a big deal, for it taps on respective market demands, for each market has its respective culture, buying power, psychographics and market performance. 3. Make a list of clothing brands whose popularity has or has not sustained their popularity and quality/image over time in the United States. Why have they changed or not? Can Hilfiger find any keys for success from these experiences? *Data came from respective brand official websites and personal experiences of the authors. Brands with sustained popularity Why have they not changed? Lacoste One strong factor about Lacoste would be brand identity and recall, for it established a strong foundation for its logo, specifically. That green alligator stood very strong throughout the years since it was established in 1933. Lacoste holds a strong promise for its brand, and it positioned itself to be a sportswear in the first place. Though Lacoste has expanded its distribution channels globally and have ventured into different product lines (footwear, leathergoods, watches, eyewear), it has kept the logo as a sign of sustained popularity. Speaking of the American market, Lacoste as a brand has been widely accepted as a whole even though the brand was established and founded in Europe. There has been no occurrence regarding a
Levi’s decided to place their product in department stores as they had good relations with the retailers due to their volume sales of jeans. They did not have any real relationship with the specialty stores where the independent male shopped. Rather than placing their new products which would be considered as high-end in these specialty stores and where they would be among the lower price range, they chose to place their products in the department stores where their products showed a deviation from the regular Levi formula and were considered very pricy as compared to other high-end department store brands such as Haggar’s. This price raised some concerns among the retailers as they were unsure if Levi’s formal wear would move out of the stores at a required pace. Also, due to price-quality inference, if Levi’s was placed in a specialty store, the Q2 customer might prefer to buy a more expensive product. Levi tried to sell these formal clothes in the same stores as their casual clothes for the same segment of customers. Customers saw these formal clothes at the same place priced higher than the casuals, and therefore found them to be expensive.
In the following I explore how myth has been used to position Abercrombie and Fitch clothing in the market.
Use the strengths of duty free, low exchange rate of CDN dollar and convenient transportation, make a bigger push into the USA. Produce a lot more ‘ Big and Tall’ size and focus on the European style which is different from USA local market.
The company has launched the Nike products, which embody a love of sport, discipline, ambition, practice, and other athletic traits.
due to the power of the ‘big four’ and shops like Primark. For competitively priced
Target market- The target market is made up of males, females, age groups, income, and also the location of your house. Hollister's target market is mostly high school and college students. Hollister and Abercrombie and Fitch are owned by the same person. Abercrombie and Fitch were originally designed for college students, while Hollister was lower priced for high school students. I think that college and high school students both shop at Hollister. Hollister is less expensive then Abercrombie. Although it is pricier then other young adult stores. I think Hollister targets middle to upper-class income in Ohio. Most of my friends shop at Hollister since it is fashionable and reasonably priced.
Price is an important factor in Burberry as price affects the value that costumers perceive they get from buying a product (Jobber & Ellis-Chadwick, 2012). Burberry uses competitive pricing similar to its competitors which produces a psychological effect on Burberry customers (Jacobson, n.d). If Burberry for example lowered its price dramatically then customers may believe the quality has decreased and may presume it’s not worthy to be named a luxury brand. However by being expensive it suggest better quality and desire to sustain its customers as well as making there products seem exclusive.
see that many brands are competing for shelf space and market share. Even though the
Nike has totally changed the sports footwear and sportswear market. Nike's huge selection of merchandise consists of specialized workout equipment, footwear, clothing, accessories and sports components. Nike is among the world's biggest brands and a leader in the sportswear industry because of their advertising, innovative products and sponsorship of top teams and
Fashion Designer Ralph Lauren has become the epitome of classic fashion. Ralph Lauren (born Ralph Lifschitz on October 14, 1939) is an American fashion designer and business executive. "The first image-maker", according to New York magazine, Lauren is one of the fashion industry's biggest hitters. But Lauren studied business science and served his time in the army before breaking into fashion. Born and raised in the Bronx, New York, by his parents who had emigrated from Belarus. He grew up in a working class neighborhood with his three brothers, mother and father (a house painter). While they were by no means poor, Ralph knew the value of a dollar from an early age and was blessed with a steadfast determination to make money
In some aspects, Luxury goods definition might be different among countries. For example, a Calvin Klein man’s T-shirt just sells about $40 in US, but it will be sold about $90 or even more in China; a Tommy Hilfiger women dress only sells $120 in US, but it will be sold about $260 or even more in China. Therefore, Chinese customer regards Calvin Klein and Tommy Hilfiger as light luxury goods, which is still being expensive but compared with Prada and Louis Vuitton, Calvin Klein and Tommy Hilfiger, is less expensive. However, American customer does not treat Calvin Klein and Tommy Hilfiger to light luxury goods, which is just as normal brand like Abercrombie & Fitch. So we can clearly notice that same brand has different price positioning in different countries. The same situation also happens to skin care product. An Estee Lauder advanced night repair serum just sells $62, about 390 RMB; but it can be sold in 1050RMB, which means this product price in China is three times in US. Price. For this reason, more and more Chinese customer likes buying luxury goods overseas, especially in Hong Kong and Macau or other travel
trends for their brands. Such misconceptions had negative implications on the performance of Marcello’s and
| Weaknesses * Brand perceived by consumers as being behind competitors in product trends * Brand perceived by retailers as not innovative and less profitable – reduced shelf space
This mode highly controls over the quality and progress of production in Chinese market and avoids layers of exploitation of traders and brokers. Meanwhile, UNIQLO has a huge superiority in terms of quality and cost by procurement of raw materials globally (Fast Retailing Co., 2014). As reasons mentioned above, commodities of UNIQLO are mainly priced between 300 yuan to 600 yuan, successfully achieved the business philosophy of " low price, quality assurance ".