Brand Failures

Rebranding failures 209
74 Tommy Hilfiger
The power of the logo
Tommy Hilfiger is one of the world’s best-loved designer clothing brands.
During the 1990s Tommy Hilfiger moved from being a small, niche brand
targeting upper class US consumers to becoming a global powerhouse with
broad youth appeal.
But then, in 2000, the brand was suddenly in trouble. From a high of US
$40 per share in May 1999, Tommy Hilfiger’s share price fell to US $22.62
on New Year’s Day 2000, and was cut in half again by the end of that year.
Sales were slowing and, most tellingly, flagship stores in London and Beverly
Hills closed down. Various runway shows at fashion events worldwide were
also cancelled.
So what was going wrong According to Tommy Hilfiger himself, the
explanation is to be found in his decision to be adventurous with the brand.
He said in a 2001 interview with New York magazine:
At one point, I told my people, ‘We have to be the first with trends’, so
we ran out and tried to do the coolest, most advanced clothes. We didn’t
just do denim embroidery. We jewelled it. We studded it. We really
pushed the envelope because we thought our customer would respond.
But the customer did not respond in a big way, and our business last
year – men’s, women’s, junior’s – suffered as a result.