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The news has been reporting that Tommy Hilfiger is over for trade.
As of this jotting, there are colorful apparel brands and investment groups pondering an accession of the Tommy Hilfiger company.
There’s no question that Tommy is one of the leading apparel brands in the world.
It has been reported that it’s gaining fashionability in Europe which should more than neutralize any slowing of its request share growth in the US request.
What should be an intriguing situation is the following:
- It has been reported that Wal Mart is interested in making a deal with the unborn acquirer of Tommy.
- Wal Mart would like to carry vesture and other accessories from Tommy Hilfiger.
- But the dilemma for a buyer of Tommy would be the consequence of having their brand vended by a public reduction retailer.
- Would the brand lose its cache as a top brand if guests can buy it at a reduction at Wal Mart?
- Any stable buyer would stop buying Tommy apparel at department stores if they can buy it at Wal Mart for lower.
- This would lead to the department stores dropping Tommy Hilfiger apparel from their stock.
- Why should Tommy Hilfiger take a chance on dealing to Wal Mart when it’ll lose its department store accounts.
- Then’s what I would do from a brand operation position.
- I would circumscribe any apparel that Wal Mart would carry to entry position lower priced Tommy Hilfiger apparel.
- The advanced end, let’s say$ 30 plus apparel, would be simply carried by department stores.
- My strategy would enable Wal Mart to carry a well given brand and increase its deals.
- The department stores wold gain since further guests would be introduced to the brand.
- When those guests decide to buy the advanced end Tommy apparel they will have to visit a department store.
Tommy hilfiger would also profit since it’ll see an increase of deals from these new guests, plus the deals it’ll make to Wal Mart.