Several people have said that Tommy is not seen as a luxury brand in the United States. Hagmans wants to make its brand more well-known in the US through custom product development and marketing efforts, like the event last night. Chris Nardone, vice president of equities research at Bank of America, said, “It’s certainly achievable, but I agree with the way PVH management has explained it, it will take some time to reach, potentially several years.”
Analysts are sure that Hilfiger has a lot of growth potential in the US, even if it isn’t showing up in the current quarter. This is because the brand is putting a lot of effort into improving product development and marketing. Sol said, “We’re seeing changes that should benefit gross margins,” Sol says. “And we still see a strong opportunity in the market.”
Europe and Asia both have a lot of money per PVH. But Hagman is worried about a drop in global demand because of rising prices and the oil crisis. “Consumers around the world are becoming more cautious in their spending. If you look at Europe, like in Germany or the UK, these consumers are very concerned about what’s going to happen this autumn/winter.” He says that retail partners are already buying with “prudence” to adapt to the environment. Tommy Hilfiger has a lot of stores all over the world.
Getting around inventory shortages with digital innovation
Nardone says that inventory management is hard for fashion companies around the world, including PVH Corp. He points out that last year’s stock was limited because of problems in the supply chain, which made it hard to promote brands like Tommy Hilfiger. Gave. “Today, the supply chain is getting stronger, and businesses are starting to place orders earlier. This has led to the return of discounts so that more stock can be sold.”
Sol says that if Tommy Hilfiger wants to make more money, it needs to get rid of its unsold stock.
During Metaverse Fashion Week in Decentraland, Tommy Hilfiger will show off his spring 2022 lines and NFT wearables.
As a solution, Tommy Hilfiger is in a “testing and learning” phase with on-demand production. He is also coming up with 3D product creation and sampling to get rid of delays and improve the way he buys things. Hagman says. In the last two years, the company has moved its design processes online to make shipping and sampling easier. At the moment, 50 percent of collections are planned and made in 3D, and the goal is to get to 100 percent by 2025. Digital showrooms are now the only way to do business with wholesalers.
Hagman says that the planning, production, and location of today’s fashion business are all very poor. “There is a lot of speculation on what to produce and what will be trending, so we are gradually moving to on-demand manufacturing, where you bring supply and demand very close to each other.”
Hagman agrees that it would take time for Tommy Hilfiger to find a model with low inventory and no waste. For now, the business is looking into T-shirt printing on demand. “We are all very optimistic about the North Star of the industry. It is one of the biggest bets on the future.
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